How to Choose the Best Financial Advisor

If you need to choose a financial adviser to get you on the right money management track, there are some simple questions to ask. A good financial adviser will look out for your financial interests ahead of their own personal financial gains. This article will help get you started so you can choose the best financial adviser for your needs.

Difficulty: Moderately Easy

Instructions

1. Set up an interview with each perspective financial adviser. Ask how long they have been in business and education. Find out if they consider themselves to be a fiduciary. A fiduciary will support and advise you as an investor. They will hold your financial interests ahead of their own personal financial interests.
   
   This type of service may be a stark contrast to your current financial adviser. Believe it or not I recently made a call to my financial adviser, but he was out of the office for a week at a "company conference" at Disney World. Knowing the amount of money I had recently lost, this was a bit disappointing.

2. Determine if the financial adviser is a Certified Financial Planner. If so they will be held to the standards of the CFP board. The CFP board enforces diligence and ethical standards for their members.

3. Understand the services the financial planner is offering to you. Is the planner offering to provide advice or to provide recommendations and then execute the transactions on your behalf? Find out the fees for each service that they will provide to you.

4. Determine how the financial planner will communicate with you. Will you receive statements, phone calls, emails? Review your financial goals with the adviser to find out how they can help you achieve your goals.

Tips & Warnings

• Some financial advisers require you to have a minimum amount of assets to take you as their client. Find out if you qualify before meeting with the adviser.

[lighthouse1958]

on 8/28/2009 I wrote an article about a broker the other day. After reading your article on advisor, you are by far the better writer. I need to step it up to keep up with writers like you. 5*

[sonni57]

on 8/28/2009 A financial advisor is very important so it sure needs to be a good one.