Choosing a financial advisor is a critical and personal decision. You will be entrusting this person with not just your finances, but also your goals, aspirations, and even your family's well-being. It's essential that you find someone you can trust to make smart decisions with your money and provide sound advice on financial matters that may impact your life.
At Wealth Village, we understand the importance of this decision and are here to guide you through the process of finding the right financial advisor for you. We encourage you to review our comprehensive guide on choosing a financial advisor, which can be found on our website. If you're looking for a more condensed overview, here are seven steps to follow when selecting a financial advisor:
Before you begin your search, it's important to have a clear understanding of what you're looking for in a financial advisor. Are you looking for help with retirement planning, investment management, or tax planning? Knowing your specific needs will help you narrow down your search
Talk to friends, family, and colleagues to see if they can recommend a financial advisor they trust. You can also ask your accountant, attorney, or other professional for recommendations.
On Wealth Village, you can post questions and get responses from multiple financial advisors. This is a great way to test advisors out to confirm that they are not only knowledgeable, but also personable and responsive.
Look for financial advisors who hold professional credentials such as a CFP (Certified Financial Planner), CFA (Chartered Financial Analyst), or ChFC (Chartered Financial Consultant). These credentials indicate that the advisor has met certain education and experience requirements and is subject to a code of ethics.
Once you have a list of potential advisors, research them to find out more about their qualifications and experience. Check their websites, read their bios, and look for any disciplinary actions or complaints. There are several websites that can help you research financial advisors, such as FINRA's BrokerCheck, the SEC's Investment Adviser Public Disclosure, and the National Association of Personal Financial Advisors. These websites will allow you to check an advisor's background, qualifications, and any disciplinary history.
Schedule a meeting or phone call with the advisors on your list to discuss your needs and goals. This is also an opportunity to see if you feel comfortable with the advisor and if they are a good fit for you.
It’s important to know how the advisor is paid, that means you should check if they work on commission or fee-based. Both have pros and cons and you should evaluate if the option fits with your goals and expectations.
Remember, finding the right financial advisor takes time and effort, but it's worth it in the long run to have someone you trust managing your money. Keep in mind that you may have different advisors for different aspects of your finances. A financial planner may be someone you trust to help with budgeting and retirement planning, but you may also want a different person to help with investments.