Tips & Tricks

3 Tips For Picking A Financial Advisor

If you want to really understand and control your money, it can be very beneficial to educate yourself on various financial principles. But while this is definitely an option, many people would rather choose to seek out the advice of those who’ve made understanding finances their career.

In situations such as this, it can be helpful to find a financial advisor to work with. This person can explain many areas of your finances to you and help you in making the right financial decisions in the future. However, finding the right person to work with can be a challenge.

To help make this whole process easier for you, here are three tips for picking a financial advisor.

Know What Type Of Advisor You’re Needing

A financial advisor is a very broad term for someone who can assist you with your financial needs. But until you know what your financial needs are, you won’t have much luck in finding someone who can meet those needs. 

To help you with this, it’s good to know what some of the most common types of financial advisors there are so you can decide the type of services you’ll be wanting or needing. According to Andrea Coombes and Anna-Louise Jackson, contributors to NerdWallet, some of the most common types of financial advisors for personal finance include financial planners, brokers, analysts, investment advisors, wealth managers and more. But if you’re looking for help with your professional finances, you might want to seek out CFO advisory services

Get Some Referrals

Once you’ve narrowed down the specific type of financial advisor you should be working with, it’s now time to find some potential people or firms that you can create a partnership with. 

Although you can do your own research through the Internet or other resources, Geoff Williams and Coryanne Hicks, contributors to U.S. News and World Report, recommend that you first ask for some preliminary referrals from friends, family, or even acquaintances. By doing this, you’ll be able to get advice from people that you respect from a financial standpoint and help set yourself on a similar path. 

Ask The Right Questions During The Interview Process

When you’ve narrowed down your search to just a few potential candidates, you should find time to speak with each person or someone from their firm so you can see if this match would really be a good fit.

To show you what types of questions you should be asking, Jack Waymire, a contributor to Money Under 30, advises that you think about this like it were a request for a proposal. What this means is that you ask questions that will help you find people that most closely align with your own financial goals. For example, make sure you ask about their experience, their services, their methods of communication, and how they’ll handle or manage your assets. 

If you’re on the hunt for a financial advisor, consider using the tips mentioned above to help you find the right one for you.

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