如何找到优秀的财务顾问

It’s easy to assume that if someone has “financial advisor” on their business card, then they are acting in your best interest. That, however, is not always the case. Some financial advisors earn commissions from investment companies, which could influence them to push you toward a product that earns them the most rather than what’s best for you.

Others simply do not have experience helping seniors with specific retirement issues like Social Security, RMDs, or long-term care planning. To hire a good financial advisor, it’s important to ask the right questions and avoid common costly mistakes.

Follow this guide to learn how to find a good financial advisor who will put your retirement needs first.

5 Things To Consider When Choosing a Financial Advisor 

Here’s what you should do before trusting someone with your money:

1. Define Your Goals and Needs

First, consider your long-term financial goals and needs. Do you want to protect retirement income, plan for healthcare costs, or leave an inheritance? Seniors may have several goals, so it’s best to define financial goals clearly. Writing goals down is also valuable, and you can think of helping you achieve those goals as a job description for your new financial advisor.

For example, if you want to build retirement savings, seek an advisor with investment planning experience (which should be very common). You may want an asset management strategy that focuses on stability rather than high growth. On the other hand, if daily cash flow management is your top priority, an advisor who has experience with retirement budgeting may be more helpful.

Considering your needs in this way will simplify the search for a suitable financial advisor who can cater to your unique requirements. It also avoids confusion during the selection process when you meet advisors who may have other strategies that aren’t relevant to you. Defining your goals clearly means you’ll find a financial advisor who adapts to your situation, not one that uses a generic checklist.

2. Verify Credentials and Background

Keep in mind that not all advisors are created equal or have the same training and experience. You can verify whether your advisor is a CFP (Certified Financial Planner) or a CFA (Chartered Financial Analyst). These designations indicate that your advisor has completed a comprehensive training program and adheres to a strict code of ethics.

A reputable advisor should have no problem with you checking their background on FINRA’s BrokerCheck and on the SEC’s adviser database. On these platforms, you can then confirm for yourself whether there have been any disciplinary actions against them or customer complaints.

Credentials are important, but so is experience. An advisor with years of experience working with retirees can be a more effective guide than one who is just starting out. Checking your advisor’s background is not about being a skeptic. It’s about protecting your money.

3. Understand Fees and Conflicts of Interest

Fee structures are another way that financial advisors differ, and how they get paid can affect their recommendations. Some advisors charge flat fees or hourly rates, but others receive commissions for certain financial products they sell. 

If an advisor is on commission, they may steer you towards investments that pay them more, even if it’s not the best option for you. This is why it’s important to consider both fees and conflicts of interest when choosing an advisor. Ask about their fee structure and what’s included in their services.

For example, if an advisor is pitching you retirement accounts, are they weighing the advantages and disadvantages of a regular IRA vs. a Roth IRA for your particular situation, or just selling you a product that pays higher commissions? Advisors who only charge fees are typically the most transparent, because they don’t make money through commissions.

Always ask if the advisor is a fee-only planner and if they’re a fiduciary, which means they’re required to put your best interests first.

4. Seek Referrals and Compare Options

Asking for referrals is one of the best ways to find a trustworthy advisor. There’s a good chance that someone you trust (a friend, family member, or professional associate) knows someone who will be a good fit for you.

However, don’t just settle for the first person that you’re referred to. Get contact information for at least two or three advisors, then schedule interviews so you can compare their approaches. Every advisor’s practice is unique, with its own distinct philosophies, pricing models, and communication styles. Interviewing several will give you a few different options and a basis for comparison.

Ask about their experience with similar situations. Do they have experience managing retirement income and working with clients with estate planning goals? You’ll also want to compare what services they offer and how they are delivered. 

Consider the tools and technology that each advisor uses. Spending a little extra time to make the right choice is well worth it and will save you from having regrets later.

5. Assess Fit and Communication Style

The best-qualified advisor may not be a good fit for you if you feel uncomfortable talking with them. Look for good communication in the early stages. Does the advisor listen to you? Are their answers straightforward, or are they full of industry jargon? You need someone who communicates in a way that’s easy for you to understand.

You also want to know if they’ll be available when you need them. Will they return your calls in a reasonable timeframe and keep you posted along the way? Open and honest discussions are the cornerstone of a trusting advisor-client relationship. This is especially true when discussing sensitive issues like retirement income or healthcare.

The Bottom Line: How To Find a Good Financial Advisor

Retirement is a time to enjoy the fruits of your labor, not to worry about financial mistakes. With the right financial advisor, you can rest assured that your retirement is in good hands and focus on enjoying your well-deserved free time.