When you try to hire a financial adviser to help you with your financial planning, you should look out for someone who is confident. You shouldn’t hire someone only because the financial advisor’s rate is low. Here are five tips for hiring the best financial advisor.
Compare the service offerings
A financial advisor is a broad category. You should look for someone who specializes in the field you want financial advice for. For example, if you want help with your tax then you cannot hire someone who specializes in the mortgage.
Know how the advisor is compensated
If you hire a fee-only financial advisor then you need to compensate them; your insurance company or brokerage firm won’t have any role to play here. Your advisor can be compensated hourly or with investment management fees. You should openly discuss the fees with your advisor.
Look at their credentials
You should look for advisors with a Certified Financial Planner (CFP) or Certified Financial Analyst (CFA) designation. These designations indicate that the person has expertise in investments and other financial matters. They are considered to be financial planning experts.
Location of the financial advisor
A financial advisor helps you with your personal financial planning. It is better to have someone who lives near you so that you can frequently communicate face-to-face. The interaction should be personal as you are dealing with very sensitive issues.
You should take the time to find a good financial advisor who will be able to advise you on your financial matters. You should use these tips to search for the right financial advisor.