How to Choose a Financial Advisor

How to Choose a Financial Advisor

Choosing a financial advisor may be one of the most important financial decisions that you will ever make. The person you decide to work with will be in a position to influence critical investment and planning decisions. The quality of his or her advice could heavily influence your long-term financial success. Whether you are preparing for retirement, selling a business or handling a wide range of complex financial matters, having the right financial advisor relationships in place is vital. Here are some areas you may want to consider before selecting a financial professional.

The financial services field is broad and there are a number of different types of financial advisors who offer a range of qualifications, experience, and services. Determine what your primary needs are, such as: help establishing a nest egg, planning your retirement, or buying a house, and look for financial advisors with experience in those areas.

Fiduciary

When choosing a financial advisor, make sure they hold themselves to a fiduciary standard. A fiduciary has a legal duty to act in your best interest. It is important to ask any potential financial advisors if they work to the fiduciary standard at all times before agreeing to do business with them.

Qualifications and Experience

Check the qualifications and experience level of any prospective financial advisor before investing with them. While certifications and professional designations are not everything, financial advisors with legitimate designations have demonstrated a desire to go the extra mile in their professional training. Most of these designations require candidates to demonstrate competence in a range of topics and meet high ethical and professional standards.

Fees (Fee-Only)

When a financial advisor is “fee-based” or “fee-only” that means that they charge an investment advisory fee to manage their clients’ assets and they do not earn any commissions. The fee amount is typically based on a percentage of the assets held in the account. Being a fee-only financial advisor and a fiduciary go hand in hand. Fee-only advisors have fewer conflicts of interest and commonly provide more comprehensive advice.

Be Selective

It’s important to be objective when choosing a financial advisor and setting up multiple interviews allows you to compare advisors and select the one that best fits your needs. Use a process of elimination and cross each financial advisor off your list as you identify your likes and dislikes. Focus on objective criteria such as years of experience, qualifications, as well as subjective ones such as personality match. You want a financial advisor who meets your needs as well as meshes with your personality.

Here at Dechtman Wealth Management, we work hard to make sure our clients understand all the options available to them so they can make educated choices. Please feel free to call our office today at 303-741-9772 or send us an email at info@dechtmanwealth.com, with any questions you may have.