How To Choose The Right Financial Advisor For You

Choosing a financial advisor is no different from selecting any other professional. The best way is to ask your friends and business associates (if you are comfortable doing so) who they work with. Then you can set up an introductory meeting with each of them to find out more about their services, philosophy and personality. At the initial meeting, it may be helpful to take an overview of your assets, liabilities, income, and expenses. If the meeting gets to the point where you are comfortable talking specifics, you already have the basic information with you.

Personality and Presentation Style

I bet you thought I was going into a long explanation about credentials, didn't you!? Well, it really doesn't matter how smart the person is and what classes he or she has taken, if you can't stand to be around them for more than a split second at a time. Think about it...how enthusiastic are you going to be about keeping your scheduled appointments and discussing your life's goals and dreams with someone you really don't like. So there needs to be at least some basic chemistry. Each of us has a personality style that usually falls into a combination of these four categories:

Analytical - Systematic, Logical,Well Organized. Appreciates information and documented facts and statistics prior to making a decision.

Expressive - Outgoing, Talkative, and Very Social, High Energy. Sometimes have a need to be the life of the party, Like to be on the inside with people in the know. Sometimes more talk than action.

Amiable - Sensitive, Easy Going, and warm. Dislikes confrontation and concentrates more on the feelings as opposed to the facts and figures.

Driver - Bottom Line and Results Oriented, Skip the details and give them the how, why, and when. Usually very direct and to the point and can appear threatening.

To best pick a financial advisor, it is important that you know what your personality style is and if the advisor works well with your personality type.

Experience

How long has the financial advisor been in the industry? The reason this is important is for two main reasons. First, chances are they have worked with numerous families or individuals and can help you with the gained knowledge of having worked with various households and situations. Second, the longer an advisor has been in the industry, the more economic and stock market cycles he or she has witnessed, and should be better prepared to give you sound advice.

Credentials

There are a number of credentials in the financial planning industry. Each represents additional study in a specific area of financial planning. Certified Financial Planner (CFP), Chartered Life Underwriter (CLU), Chartered Financial Consultant (CHFC), Chartered Retirement Planning Counselor (CRPC), Accredited Asset Management Specialist (AAMS), Certified Estate Planner (CEP), are a few of the many designations in the industry. Credentials not only signify additional specialized knowledge, but often are an indicator of the commitment of the advisor to the profession.

Services and Fees

The services your financial advisor provides is important. Do they do detailed and written financial plans or are they primarily a broker or insurance agent with the ability to really help you only in their primary area of expertise? What is their fee schedule...commission, flat fee, percentage of assets? And finally, what is the strength of the company they represent and what products do they offer.

Armed with this knowledge, you should be able to begin your search for a qualified financial advisor to help you navigate the maze to a secure future.

Wishing You All The Best Life Has To Offer!