How to Choose a Financial Advisor.
When looking for a financial advisor, it is important to first interview a few before settling for one. Below are important questions you can ask a potential financial advisor to determine if they are the right fit for the job.
It is important to check if the financial advisor has the right qualifications. The first rule for anyone to operate as a financial advisor is a CFP professional. The industry keeps on changing, ask the advisor if they have undertaken other relevant courses in this field. The more educational qualifications the financial advisor has the better.
When looking for a financial advisor, it is important to find out if the financial advisor has been licensed and regulated by the state. A good advisor will not hesitate to show a copy of their license, ensure the license is current and legit.
Something else you should find out before you settle for a financial advisor, it’s the rate they charge. Don’t start any business with the financial advisor before knowing how much they charge. Some financial advisors will charge you a fixed fee, while others work on percentages depending on the investment. Knowing this from the word go ensures there is no misunderstanding between you and the financial planner later.
It is important to ask the financial advisor if they have a team of experts that you will work with or you will work directly with the financial advisor. If the financial advisor has lawyers and other professionals they work with, it is advisable to also meet them.
Does the financial advisor have any privacy clause? For a reputable financial advisor, they don’t go around discussing your finances with third party, they protect the privacy of their clients always.
Another thing you should look out for it’s the duration of time the financial advisor has been in business. If you want to work with an experienced financial advisor, go for a financial advisor with not less than 3 years’ experience. Such an advisor has diverse knowledge in the field and they will give you the best advice.
When looking for a financial advisor go for one that you can have full trust in. A good financial advisor should give the best advise that will benefit their clients. A good financial advisor will be professional in all your deals, they will not advise you to invest in something because they will benefit directly. With a trusted a financial advisor, you will have a good working relationship.
Lastly, ensure you do a background check on the financial advisor. Avoid working with financial advisors that clients have complained about their ethics to the authorized regulatory body.