Finding the right financial advisor for you can be a difficult task. After all, how the hell do you know who to trust? And just because someone can be trusted, does they really have all the answers to the questions you need help with? What level of experience do they have? And more importantly, are they really working in your best interest or are they just looking out for themselves? As if those concerns weren’t enough, you also need to worry about the ethics of your advisor. You don’t want to find yourself working with the next Bernie Madoff who runs away with all your money or uses your precious assets to fund his next big Ponzi scheme. So how do you sort through all the options and find the right advisor for you?
Let’s look at three things to consider when selecting the right financial advisor for you and your family. First, how do you know they are legitimate, second, how do you know they have your best interests at heart, and third, how do you know they will be a good fit for you? Let’s explore these three questions in detail to help you get the help you need.
So how do you do your due diligence and make sure that an advisor you plan to work with is in fact a legitimate financial advisor with verifiable experience and up-to-date licenses? The first place you might want to check out is a website called Broker Check. You can simply search Broker Check to find the official site. This website has a free tool to research the backgrounds and experience of financial brokers, advisers, and businesses. Broker verification can instantly tell you if someone is registered under the law to sell securities and offer investment advice or both. The Broker Check also gives you insight into an advisor’s employment history, licensing and regulatory information, arbitrations and complaints. Wouldn’t that be good information to have before getting in touch with an advisor?
Next, it is important to determine whether or not an advisor has your best interests at heart or not. One way to help you figure this out is to ask your advisor if they are acting as a trustee. I know it’s a three dollar word, but all it means is that they are legally obligated to put your interests ahead of theirs and disclose in advance any conflicts of interest that might interfere with this goal. For example, if a trustee is going to receive a commission on a product they recommend to you, they are obligated to disclose it to you before you buy it. Another useful thing to watch out for is looking for an advisor who asks to see more than just your financials. Before they start working with you, they should ask to see your tax returns, legal documents, and insurance contracts. If the only thing they want to see or talk about is your investment statements, how can they really take your whole situation into account when making recommendations?
Finally, you should never feel commercial pressure to go ahead or make a hasty decision. A professional advisor won’t use old-fashioned sales tactics to win you over as a client. You may need to meet with more than one advisor and just see how you feel in each meeting. If you are feeling pressured or uncomfortable in any way, this is probably not the right counselor for you. You should feel like the advisor in question is asking good questions in an effort to help you make an informed decision about how much money is right for you. If you receive comments that he / she is more interested in making a sale than doing the right thing you should probably pass it on to someone else.
There are certainly other factors you might consider such as the specialty of counselors and even proximity to your hometown. However, if you start with the basics of your due diligence, making sure they are concerned with prioritizing your interests and deciding if you have a good feeling about them, you are on a good start to finding the right one. financial. Advise for you. Good hunt!