Finding a Financial Advisor: Planning for the Future


Finding a financial advisor requires careful thought and patience during the selection process. Doing research will help to ensure the right candidate is selected to help make decisions related to your financial future.
The selection process requires many aspects to be taken into consideration to ensure correct decisions are made to prevent your finances from being negatively affected. A good financial advisor will help with business and personal taxes, investment planning, retirement funding and keep you in good financial health.

An ideal financial advisor will know the federal and local laws related to finance of various types. The person will be able to advise you of the steps that should be taken to improve financial conditions and promote profitability for the future.

Aspects to Consider When Finding a Financial Advisor

Before searching for an advisor, you must decide which service you seek to fulfill your needs. More than just advice is needed to succeed. There are different types of advisors to choose from such as investment planners, finance consultants or invest advisors. Researching the claims is important to help make a sound decision as to who will be employed.

It is best to compile a list of advisors you wish to contact. Listings can be found online and also in the yellow pages of your local telephone directory. The next step is to contact the advisors you are interested in and obtain information about fees, including the initial consultation regarding their services. Some advisors will not charge for the initial consultation while some will charge approximately $150.

During the initial consultation, describe to the advisor what your needs are. Some of the information you will need include proof of income, the amount of your financial worth and information on the result you would like to see. Having this information will help to decrease your costs later when time with the advisor is used, especially when the advisors fees are billed hourly. Some advisors charge hourly and others charge a commission which is a percentage of the income generated for the client.

Financial advisors who report information to the SEC (Securities Exchange Commission) are recommended. Information such as the methods they use for investment, their compensation, level of education as well as the background of their practice are disclosed to the agency through an ADV form. It is important to access this information when working with advisors who manage in excess of $25,000,000. Advisors who manage less than $25,000,000 report information to the state securities agency they operate in.

Advisors who are involved with securities, they must have a registration number from CRD (Central Registration Depository). Registration with the state they run business in is required. When finding an advisor, it is important to obtain information on the advisor’s registration.

Another important aspect to consider is the education level of the consultant. When visiting the office, some service providers will have certifications framed on the wall similar to physician’s offices. Similar to a doctor having the letter MD or OD after his or her name, an advisor will have ChFP after the name. This shows the consultant is a Chartered Financial Consultant. If the letters CFP are after the name, this means Certified Financial Planner. The letters CPA mean the advisor is a Certified Public Account. For personal finances, the advisor may be a PFS (Personal Finance Specialist).

The best provider will have a high level of experience and for a long period of time. An experienced financial consultant will be able to provide verifiable re3ferences as well. Always ask the provider how long he or she has been employed in the field.

Some individuals employ more than one financial advisor to oversee different areas of finance. There are advisors who specialize in specific areas if one provider does not provide the services you require.

Since many people have used financial advisors in the past, someone in your family or a friend may able to recommend a person or agency they have used in the past. Obtain information from the person recommending the advisor about their services and fees. They will be able to tell you the experience they had with the person.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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