Most people need some help when it comes to financial planning and investing. That’s when we turn to financial advisors. With many options available, it’s important to ensure you choose a financial advisor that you can trust and feel comfortable with.
So what are some signs that a financial advisor is a good fit for you? Here are some things to look for when deciding who is best for you to work with.
1. They have clients that are similar to you
Every client has their own unique needs, goals, and circumstances. But there are some commonalities among clients. Lawyers, doctors, teachers, and other professionals have different pension and retirement plans that affect how much they need to put away themselves. Their careers also alter the resources available to them.
The stage you’re at in your career affects your resources and needs as well. A younger person with a long investment horizon ahead of them may have a greater risk tolerance than someone a year or two away from retirement.
When looking for a financial advisor, find someone who helps clients in situations that are similar to yours. While they won’t be in an identical position, their needs will be similar enough that you can get an idea of how well that financial advisor can help you.
2. They come with a network of advisors
Just as your general practitioner will send you to a specialist to deal with specific healthcare concerns, a financial advisor will have a network of professionals they can refer you to for your financial needs. For example, they may have an estate lawyer who can help with drafting wills, an accountant for tax returns, and a bookkeeper for business dealings.
A strong financial advisor knows that they can’t take care of everything for you, and they will have cultivated a team of experts who can help you manage your finances.
3. They keep you focused on your goals
Financial advisors know that investing is stressful, and novice investors can become overwhelmed by dips in the market. This leads to impulsive decisions with disastrous consequences. Your advisor is a coach, who keeps you on track when investment issues arise.
They can show you the bigger picture–how a dip in the market doesn’t mean it’s time to cash everything in–and how the long-term trends affect your investments. Because they’re there to help you, they can take the emotion out of your investments and bring it back to the information available to you, so you can make smart decisions.
4. They take the time to get to know you
As mentioned before, every client is different. Even where there are similarities, your unique circumstances mean your goals, resources, and needs are different from other clients. The best financial advisors take the time to get to know and understand their clients. They ask about risk tolerance, future goals, what those goals look like, and how comfortable you are asking questions.
They take the time to explain everything to you, so you feel confident and comfortable with the decisions being made. They make it clear that they’re working with your best interests in mind, based on your circumstances. And they are available to talk through your concerns.
It’s in your best interests to work with a financial advisor who works well with you. That’s how you get access to the best, most knowledgeable, and most relevant advice. Talk to people to find out who they go to for their financial advice. Look up reviews and testimonials and don’t be afraid to ask questions. That’s how you get to know the people who will be helping you.
