The Secrets to Finding a Financial Advisor

A financial advisor can help you invest and grow your money in ways consistent with your goals and values. The role of an advisor may include providing expert advice about the buying, trading, or selling of assets like stocks, bonds, and real estate. But the scope of an advisor’s work goes far beyond these traditional roles. That’s because today’s consumers seek advisors who can help them manage their financial lives, including insurance and taxes, estate planning, wills and trusts, and even some day-to-day personal finance decisions.

6 critical attributes of a sound financial advisor

1. Good financial advisors have extensive financial knowledge

Financial advisors with extensive knowledge of the entire market can help guide you toward opportunities based on your risk tolerance, investment horizon, and other factors. Many advisors are seeing new clients and adding to their portfolios because they’ve built relationships with people who trust them to help guide them in all aspects of their financial lives.

2. Good financial advisors are trustworthy

The most important thing consumers can do is find someone they trust and whose advice they value. Unfortunately, some bad apples in this business may be more interested in selling high-commission products than offering unbiased expertise. Finding an advisor willing to put your interests ahead of your own is crucial. Remember more about this under #4 below.

3. Good financial advisors are sensitive to your needs

Financial advisors need not be experts in every area. But they must understand their client’s goals and values and grasp your needs and what kind of financial advice you would enjoy receiving. In other words, they should be able to listen attentively to your needs as a client and help you interpret the details of this information into a cohesive plan for making the most of your financial life. A certified retirement financial advisor is one professional who can help with this process.

4. Good financial advisors have a fiduciary responsibility to their clients

Because the advice of a financial advisor is meant to help you make better decisions for yourself, and because this person will be paid for their services, they must have a “fiduciary responsibility” to you. Fiduciaries are accountable for the results of their advice and the fees they charge.

5. Good financial advisors are personable

Client-advisor relationships can bring about feelings of respect, trust, involvement, and safety that often go far beyond financial advice. Another way to state this: a good advisor is concerned not only with making money for you but with helping you become a better, more prosperous, and more successful person. A willingness to talk about the impact of significant life events on your finances and your ability to meet long-term goals is an excellent sign.

6. Good financial advisors are up on the latest developments in their field

Financial advisors must constantly learn about the new information and opportunities their employers, vendors, clients, and colleagues present to them.

In conclusion, finding a good financial advisor takes time and effort. To find the right one, you should do your due diligence by asking questions and even taking a “prospecting” visit to your financial advisor’s office. Small-business owners should remember that an exceptional financial advisor can make their business more profitable.

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