The American Association of Retired Persons (AARP) suggests that when you are looking for a financial advisor, you take your time and find the one that is the right fit for you.
Before you get started
Make a list of your needs:
- Risk Management/Insurance
- Tax Planning
- Investment advice
- Retirement Planning
- Estate Planning
- Credit/Debt Management and Budgeting
Know your goals:
- What does success look like to you?
- What do you want to accomplish in the next year, 5 years, and longer?
Research the advisor you think will meet your needs:
- Check out their website.
- Find out if they offer services directly or outsource them.
- Confirm how long the advisor has been providing services.
- Ascertain the licenses and designations the advisor holds.
- Research what the licenses and designations mean.
- Search online for reviews for the advisor or their firm.
- Check The Securities and Exchange Commission, your state securities regulators and the Financial Industry Regulatory Authority (FINRA) websites, all of which provide free reports on the disciplinary history of financial advisors.
During the interview with the potential financial advisor
Things to listen for:
- Is the advisor listening to your needs or trying to sell goods and services?
- Did the advisor ask about your goals?
- Was the advisor interested in teaching you things you didn’t know or understand?
- Did the advisor guarantee a return on your investments? (Investment returns are based on the stock market and can’t be guaranteed.)
- Is the advisor transparent about fees, services and credentials?
What to ask about when you meet with your advisor:
Details about their services.
- Ask what services they provide.
- Ask them to provide a written analysis of your financial situation and give recommendations.
- Ask if you will work with them directly or one of their team members?
Questions about their experience as a financial advisor.
- Ask about their results for customers in similar financial situations.
- Ask if they have worked successfully during an economic downturn.
Information about the investments and products they usually suggest, use, or offer.
- Ask what types of investments they offer their clients.
- Ask if they sell investments or insurance products. If so, are they able to sell products not affiliated with their company?
- Ask if the company they work for limits the services they offer to the products sold by the firm.
- Ask how often they review client’s portfolios and recommend changes.
- Ask them to tell you their overall investment philosophy.
- Ask how often they will meet with you to review your investments.
Details about their compensation and fees.
- Ask how they are compensated.
- Ask for details about the fees associated with the products they recommend.
- Ask for a breakout of all their fees and commissions.
- Ask if they charge for duplicate copies of investment statements, postage and handling, or transfer on death fees.
- Ask if they charge separately for transfer on death fees.
Once you are satisfied with the financial advisor you have chosen, you are ready to team up with them to work on your financial goals.
How Care is There can help:
- Help you and your loved one think through what is important to you and refine your financial goals
- Assist you as you research financial advisors
- Support you as you interview financial advisors
- Daily Money Managers can assist you with gathering paperwork and necessary paperwork for your financial advisor
Resources for Choosing a Financial Advisor:
Next Steps
Contact Care is There today for a free consultation!
Central Virginia: 434.326.5323
Shenandoah Valley: 540.246.0211
Toll Free: 800.434.1633
Email: Info@CareisThere.com