Tips for locating a highly-rated financial advisor in your area to assist with money management, investment strategy, retirement planning, and realizing your financial goals. Achieving financial success is a goal for many people, but knowing where to start can be confusing. Working with a top-rated financial advisor can provide the guidance needed to manage money effectively, invest strategically, save sufficiently for retirement, and realize your financial goals.
But finding the right financial advisor near you takes some research. This article outlines tips for locating a highly-rated financial advisor in your area to assist you on your journey to financial freedom.
Ask for Referrals from People You Trust
A great way to find a reputable financial advisor is to ask for referrals from people in your network who you trust. That could include friends, family members, colleagues, acquaintances or professionals that provide you services already like your accountant or attorney. Ask if they work with a financial advisor themselves, if they were pleased with the services and results, and what they see as that advisor’s strengths. This can give you an idea of advisors to interview further. Make sure to ask how the advisor charges as well so you know what to expect.
Search Certified Financial Planner (CFP) Databases
CFPs have met rigorous education, exam, experience and ethics requirements to qualify to use the CFP designation from the Certified Financial Planner Board of Standards. Checking databases of CFP professionals, like letsmakeaplan.org or CFP.net, allows you to search for qualified advisors in your area. The CFP requirements, enforcement of their code of ethics and continuing education help give confidence the CFP advisors you find have strong qualifications. Most provide a complimentary initial consultation as well to make sure it’s a good fit.
Check Registration and Complaint Histories
It’s always smart to check a financial advisor’s registration and experience. Are they a registered investment advisor regulated by the Securities Exchange Commission or state securities regulators? If so, regulators provide free tools to research registration, education history and background checks. Additionally, see if the advisor has a Complaint History you can review for insight into issues raised by past clients to factor into your decision.
Seek Recommendations from Professional Groups
Industry associations like the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), the Alliance of Comprehensive Planners (ACP) or the XY Planning Network require members to meet certain qualification criteria for joining. Their member directories allow you to search for financial advisors in your area that have met their professional standards. Their membership indicates advisors staying current on financial planning issues, best practices and regulations to better serve clients.
Interview Multiple Advisors
Once you have a list of a few recommended financial advisors in your area to consider, take time for initial interviews and make comparisons. Consider qualifications, services provided, areas of focus or specialty, client types and experience tailored to your situation and goals. Also, find out how they are compensated so there are no surprises. Fee-Only advisors charge an agreed upon fee for services while others charge commissions on financial products recommended or a combination. Get a feel which you connect with best personally and has the approach that aligns with what will motivate you.
Ask Lots of Questions
Come prepared to advisor interviews with key questions including:
- What are your financial planning and investment philosophies?
- What financial planning or advisory services do you provide?
- Do you also recommend specific investment products and insurance or is your role more advisory?
- Do you have experience working with clients with financial situations and goals similar to mine?
- How long have you been a financial advisor?
- What is your relevant experience, education and qualifications?
- How do you stay current on changes impacting financial planning and investing?
- How do you help clients manage debt, budget and achieve other money management goals?
- Would you be the main advisor working with me or part of a team?
- How often do you meet with clients like me?
- How do you charge for your services – fees, commissions or both?
- Could you provide references from a few clients I may contact?
Check Your Gut Feel
Trust your instincts when meeting financial advisors. The right advisor-client relationship requires good rapport, open communication and transparency to nurture understanding and motivation needed to progress towards your money goals. Do you feel the financial advisor listens closely to understand your unique financial situation and priorities? Do you connect well and feel comfortable asking questions about recommended financial strategies? Does their communication style work for you even when it comes to difficult topics like risk or major expenses needed to fund goals? Take time evaluating so you choose a great fit.
Financial advisors provide guidance, answer questions and create customized strategies to help you take control of finances, manage money wisely, invest for the future and realize your monetary dreams. They help unlock financial success. Following the above tips will help you find and take that important first step in working with a top-rated financial advisor in your local area you can develop a long-term partnership with. Reach out for an initial discussion to see if working together towards your financial goals feels like the right fit. The time is now to unlock your full financial potential.