If you are looking for a top financial advisor, you are most certainly not the only one. As millions of us take stock and re-assess our financial priorities, demand for qualified financial advisor services has skyrocketed. What this means is that finding a financial advisor that is right for you might be harder than ever.
However, there is no need to panic. As this financial advisor guide demonstrates, finding the right advisor for you simply requires a little bit of know-how about the industry. Read on to find out exactly how to find a financial advisor that will help you meet your money goals.
1. Know What You Need
The first and most important step before seeking financial advisor advice is to know exactly what your goals are. There are many different official designations for financial advisors in America. It is important to determine which one is right for you. For example, if you want to grow your investment portfolio, you might want to consult a Certified Fund Specialist (CFS).
Meanwhile, you might be looking for a financial advisor near me who specializes in arranging structured settlements for people in your situation. You can learn more here about how to find a structured settlement advisor who can help you get the outcome you are looking for.
2. Check Those Top Financial Advisor Credentials
When seeking financial advice, always check the credentials. Any worthwhile advisor will have easily furnished credentials and qualifications from an accredited, nationally recognized system. CFP, PFS, CFA, the list goes on.
One reliable way to check this is to head to the National Association of Financial Advisors and search the name of your potential advisor. This should give you a full list of their credentials and experience. If you can’t find these, choose someone else.
3. Understand How They Get Paid
There are two types of financial advisors in this world – those who work for a fee and those who work on commission. Each has its merits, but it is important to know how compensation impacts service. Commission-based advisors are cheaper.
However, they earn commission by pushing financial products, often highly volatile ones, onto customers. This makes some commission-based advisors less trustworthy. Fee-based ones are more expensive but more likely to be actually looking out for your best interests.
4. Ask the Right Questions
When you think you have found the right financial advisor for you, it is time to get down to brass tacks. Do not shy away from asking the questions that you need answers to before you make your choice. Before you hire them, always ask:
- How do you make money from your services?
- Are you contractually bound to sell financial products on behalf of another company?
- How long have you been practicing?
- Have you ever filed for bankruptcy?
- Can you provide me with at least two references of current or former customers?
- Can you walk me through different projections for my financial future?
Make Your Money Work for You
Finding a top financial advisor is essential if you want to make your money more productive. For more tips on making your money work for you and boosting your lifetime wealth, you have come to the right place. Our dedicated Money guides have all of the advice you need to start planning your financial future.