Everything Finance

A financial advisor can help you develop a well-thought-out personal investment plan that is tailored specifically to your needs. Here are some tips to help you find a good financial advisor.

Understand How Financial Advisors Get Paid.

Some financial advisors get paid strictly for giving advice. Others make money by selling financial products such as stocks, mutual funds, or insurance. Some do it all. They’ll help you develop a plan, build a portfolio, and monitor your asset allocation to make sure your allocation percentages haven’t drifted because one asset class grew faster than another.

There are reputable advisors in each category, but with advisors who are also salespeople you face the possibility that they will steer you toward their own products instead of helping you put together the best investment plan for your needs.

Examine Credentials – Then Look Beyond Them.

The financial profession is full of titles and credentials. The sidebar that follows can help you understand the differences. But don’t stop there. Look beyond titles and credentials to make sure the advisor you choose is right for you.

Check References.

Ask for the names of several long-term clients. Then contact them and ask about their level of satisfaction. Don’t be pressured to rely on the word of one or two clients – everyone has family or friends who are willing to give them a good recommendation.

Do a Background Search.

Check with government and regulatory agencies to verify credentials and to find out if there have been any disciplinary actions taken against the advisor.

Ask about Continuing Education.

How does the advisor continue training? Does he or she belong to any trade organizations?

Interview Candidates.

No matter how good an advisor looks on paper, a one-on-one interview with the person who will handle your account can reveal the person’s style and help you decide whether you can work together comfortably and effectively. Does the advisor listen carefully and ask specific questions? Does the advisor understand your objectives and respect your tolerance for risk? Does the advisor give straight answers to your questions or concerns? If you feel you’d be making a compromise in any of these areas, this person may not be the right choice for you.

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About Tushar Mathur

Tushar Mathur has been blogging about Personal Finance since January, 2007. This has helped him recognize what topics readers like and relate to. The goal is to spot good news-worthy info and get it out to the public as soon as possible. Tushar Mathur maintains this Personal Finance blog called Everything Finance. The blog articles fall under these categories: Investing, saving money, shopping, blogging and making money online. Send Tushar Mathur an email at tushar@everythingfinanceblog.com