How to Find a Financial Adviser You Can Trust
You are an expert in your field, but chances are you do not have expertise when it comes to money. Millions of men and women find themselves in this same boat, wondering how to save for the future, put their kids through college and create a comfortable retirement for themselves and their spouse. Talk About Your Financial Goals Write down a list of your most important financial goals and share them with every financial adviser you interview. Those goals can be anything that is important to you, from starting a retirement plan at work to setting up a college fund for the kids to paying off the mortgage on your home. The most important thing is that these goals are important to you. Sharing these goals with the financial adviser you are interviewing is a key part of the selection process. Be sure your advisor is a fiduciary in putting your interests ahead of the firm's interests. You and your financial adviser do not have to agree politically or socially - in fact investing with politics in mind is almost always a bad idea. What you are looking for is a shared connection and a shared set of values, something you can build a long-term relationship on.
Before you can find the right financial adviser, you need to think about what you are looking for and why you need the guidance in the first place. Your first meeting with the financial adviser should include a detailed discussion of your goals - and what you hope to achieve by seeking professional help.
Everyone has different values when it comes to money, and it is impossible to separate finances from the bigger picture. That is why it is so important to choose a financial professional who shares your values, at least where money in concerned.
Understand the financial advisor's educational background. Has the advisor studied economics, investments, accounting, finance, and other topics relevant to the investment process. Has the advisor obtained credentials such as the CFA designation, which might show an extra effort in accumulating knowledge. Ask the advisor to recount experiences that have had an impact on their approach to investment management. Try to deterimine how the advisor spends time and whether it's on investment matters or marketing.
Focus on Where You Are in Life
Your financial needs and priorities do not stay the same - they change and evolve over time. When you are young and unattached, you may be solely focused on building your career and enhancing your earning power. As you get older and start to settle down, your priorities may shift to buying a home and protecting your growing family. As you get closer to retirement, you may focus more on building a solid nest egg.
No matter what your current goals, it is important to work with a financial adviser who is willing to focus on where you are in life. A financial adviser who works exclusively with high net worth clients may not have the time or the inclination to guide a new investor, while one who welcomes unsophisticated investors may not offer the kinds of products wealthy individuals are looking for. By matching your place in life with the financial planning firm, you can maximize the value while avoiding unforeseen problems down the line.
Finding the right financial professional is not always an easy thing to do, but it is important to get this decision right. When you need help with your investments, you need a professional you can trust, and it all starts with seeking out an adviser who understands and appreciates your values, one who is willing to work with you through every aspect of your financial life.