I often say that a relationship with a financial advisor is a lot like marriage: you have to trust one another and communicate often to make it work.
That’s why it’s important to find a financial advisor who is the “right fit.” Like dating, it may take several meetings with multiple advisors to find a professional who makes you feel comfortable and confident about your future.
With so many financial advisors out there, it can be tempting to hire the first advisor you meet. However, the “courting” process is essential to make sure the advisor you choose to work with is credible, trustworthy, and qualified for the specific financial services you need.
So how do you find a financial advisor who is trustworthy and qualified to meet your needs? Here are a few tips to guide you in your search.
1. Research Their Qualifications
When looking for a credible financial advisor, always start by checking their qualifications. Most financial advisors list their credentials on their websites and other marketing materials. (You’re also welcome to ask them about their qualifications directly, if you are more of an “offline” person.)
Licensure is a basic requirement for any financial advisor to practice in their field. This means they are required to pass the FINRA Series 7 and Series 66 exams to legally help you manage your investments. However, many advisors will pursue additional credentials in specific areas of financial planning to better serve you. For example, our advisors at TruStone Wealth Management have earned at least one of the following designations:
- Certified Financial Planner (CFP®)
- Chartered Financial Consultant (ChFC®)
- Certified Long-Term Care (CLTC®)
- Accredited Portfolio Management Advisor (APMA®)
- Behavioral Financial Advisor (BFA™) - Chartered Retirement Planning Counselor (CRPC®)
- Certified Divorce Financial Analyst (CDFA®)
- Certified Kingdom Advisor (CKA®)- Certified Exit Planning Advisor (CEPA®)
- Chartered SRI Counselor (CSRIC®)
More information about these qualifications and which advisors have achieved them is available on our website.
2. Watch for “Red Flags”
Every financial advisor approaches how they work with people differently. The way they interact with clients often depends on their personality. For example, some advisors are more aggressive in how they acquire new clientele, and usually they have clients who appreciate this “go-getter” attitude.
However, if an advisor says things like “I can make you more money” or “I can do better than that advisor” when trying to acquire your business, this is a big red flag. Why? Because in the financial world, there are no guarantees. If a financial advisor tells you they can guarantee higher returns on your investments compared to their competition, this is a warning sign to take your business elsewhere.
Another thing to be aware of is that some advisors are licensed to only sell their company’s products. There are also some advisors or representatives who are simply licensed to sell annuities. This would limit the products available to you and potentially prevent you from using the best strategy for your financial investments. Our team at TruStone Wealth Management works with all kinds of products and accounts to help ensure you have as many options as possible when creating your financial plan.
3. Don’t Be Afraid to Say “No”
If you started working with a financial advisor who tries to push you into financial decisions that make you feel uncomfortable – like selling your stocks in order to work with them, for example – it’s important to communicate these feelings and tell them “no.”I understand that this could be a difficult and awkward conversation. When your financial future is on the line, however, it’s important to speak up and stand your ground. Advisors who respect you as their client will listen to your concerns and find a different solution.
4. Ask for Recommendations
Lastly, when searching for a qualified financial advisor to manage your investments, ask for recommendations from people you know and trust. If they’re happy with their financial advisor, there’s a reason. We receive many referrals from our clients, and we always appreciate the opportunity to meet with new people and see how we can help them reach their short- and long-term financial goals.
Whether you’re just starting your career or nearing retirement, there’s a financial advisor out there who is the right fit for your needs. This person may even be on our team. To learn more about our financial planning services at TruStone Wealth Management, schedule a complimentary initial consultation with one of our advisors today!
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