August 15, 2022

Did you know that only 30 percent of consumers in the United States of America use a financial advisor? Choosing a financial advisor is a great step to take if you’re looking for ways to start saving money that you can put towards your eventual retirement. There are a lot of things that go into learning how to choose a financial advisor that is right for your needs and goals.

Choosing the best financial advisor could mean finding the one with the most experience or it could be finding the one that is willing to dedicate the most time towards helping you meet your goals. If you’re ready to start looking for a financial advisor then today is your lucky day.

You’ve come to the right place to learn all about choosing a financial advisor for your personal finances. Keep reading this article to start your journey of finding a financial advisor today.

1. Get a Real Fiduciary

Many people are worried about the risks that come with trusting someone you don’t entirely know to help you choose what is best for your finances. You need to trust that your financial advisor is working and acting in your best interests. It is difficult to enforce the rules surrounding financial advisors except in the absolute worst cases.

Make sure that when you’re choosing a financial advisor you’re finding someone that is genuine and sincere about working as your advocate. A great way to make sure that you’re choosing the best financial advisor is to find out if they’re investing their time and energy into staying up to date with the laws surrounding 401(k) and Roth IRA accounts.

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Ask for proof that they’ve recently taken part in training to keep up with the changing laws and regulations surrounding these financial accounts. The same thing goes for tax laws, which could cost you thousands of dollars if your financial advisor isn’t knowledgeable on the law changes.

2. Check Their Credentials

Credentials aren’t everything when it comes to choosing a financial advisor but they’re an important component that should be examined closely. You’ll want to see that they have professional credentials that show that they’re qualified and experienced enough to help you with planning your financial future.

The credential of being a Charted Financial Analyst or Certified Financial Planner is a huge feather in the cap of any financial advisor and it should be something to look for when you’re selecting a financial advisor for your needs. Check out Botto Financial for some of the best financial advice.

If you’re looking at a financial advisor with those credentials then you know that you’re working with someone that has a vast amount of knowledge and that they’ve passed a difficult exam in order to get certified. They also need to make an agreement to live and work by a code of ethics when it comes to your finances.

3. Understand How They Get Paid

You also need to know how financial advisors get paid when you’re choosing the best financial advisor. There are a number of people that are salespeople posing as financial advisors and you need to know the signs of these people so that you can avoid them. A key clue to these people is when they work for insurance agencies or fund management firms.

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If you’re speaking with someone that works for those types of businesses then odds are that they’re trying to sell you the services that that business provides. Find out if they earn a commission for selling insurance policies or stock transactions when you’re looking for a financial advisor.

4. Find Fee-Only Advisors

If you’re worried about getting taken advantage of by financial advisors then the best piece of advice you can get is to find a fee-only financial advisor. These advisors get paid only by you and other people like you that use their services and advice. People hesitate about this because you’ll have money coming out of your pocket but you’ll be better off in the long run.

You’ll want to make sure that you’re choosing a financial advisor that doesn’t face a conflict of interest by helping you. You’re not going to get quality financial advice if you’re working with someone that is more focused on their own interests than they are about helping you.

You should try to find an arrangement where you pay a fee to the financial advisor based on the percentage of assets they’re managing.

5. Try to Find Clarity

It is important that you’re choosing a financial advisor that explains everything in a clear way. Make sure that you have no trouble understanding. If you run into a financial advisor that makes you feel dumb or inconvenient for asking questions about how they’ll help you and how your assets will be managed then you should walk away.

Financial advisors that aren’t willing to answer your questions in a clear and coherent way are not going to work in your best interests. You’re better off finding someone else that will. If you encounter a financial advisor that is making decisions without your consent then that is another sign that you should leave.

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6. Stay On Track

Another thing to look for when you’re choosing a financial advisor is finding someone that will keep you on track for reaching your savings goals. They should be competent, humble, and empathetic when it comes to helping you manage your assets and finances. A good financial advisor will help you stay on track.

The best financial advisor will help you stay on track while also motivating you throughout your journey. Make sure that you’re choosing the best financial advisor.

Start Choosing a Financial Advisor Today

Choosing a financial advisor is a great investment if you’re looking for ways to save more money and retire sooner. Make sure that you’re checking their credentials. Ask the right questions to avoid working with someone that doesn’t care about your best interests. You should also make sure that you’re selecting a financial advisor that will motivate you and keep you on track.

Check out more of our blog posts for more information on other interesting topics!