It’s a common misconception that only rich people need financial advisors. If you own a business, for example, you could benefit from a financial advisor with an MBA. If you’re struggling with your taxes, a financial advisor can help you figure out the difference between a W2 and a 1099.
But what if you’ve never hired a financial advisor? What should you be looking for in a potential candidate? How are you supposed to determine a good advisor from a bad one?
Here are just a few tips for finding and selecting a top-notch financial advisor. While this isn’t a comprehensive list, it should be enough to get you started.
1. Find a Specialist
Different financial advisors will have different practice areas. For example, some focus on wealth management solutions while others specialize in estate planning or business risk assessments. Before you commit to a particular person, make sure that you’re hiring someone who can help with your unique problems.
2. Research Their Background
Where did they go to school? Did they get a degree in something like accounting, business or finance? How long have they been with their particular firm? Does the firm have good reviews from previous clients? If you type their company into a search engine, do any scam alerts or legal notices come up? Do they seem trustworthy in general?
3. Schedule a Consultation
There’s only so much that you can learn about someone through impersonal communication like phone calls and emails. Don’t ever underestimate the value of a face-to-face meeting! Even if they’re charming over the phone, they might be rude, unpleasant or unknowledgeable when you finally meet them in person. This is why it’s important to actually see them and get a feeling for their personality before hiring them.
These are just a few things to keep in mind as you seek the services of a financial advisor. At the end of the day, the most important thing is that you feel confident in your choice, so go with your instincts and your research. These things helped you make your money, so now, they can help you manage it!