5 Tips To Finding Your First Financial Advisor

If you’re ready to seek professional guidance for your finances but feel completely lost/confused, these essential tips will help you select a reliable and fitting financial advisor.

1. Decide what you want help with

There are so many different kinds of financial planning, and you first need to decide what you most want help with before you visit a financial planner. This can help you find a financial planner that has the most expertise in the area you want help with. For example, you might want help creating your own budget that you can stick to, or you might need professional advice in managing your debt. A financial planner could also help you make investments, prepare for retirement and help you manage your retirement accounts, set up a trust, and more. If you have multiple areas of financial planning you want advice on, the good news is that many financial planners will be able to help you in more than one area (or you could visit separate planners for each new topic you want to cover).  

2. Make sure you visit a Certified Financial Planner

Earning a CFP is a first step many advisors will take when they start advising. Not all advisors with a CFP will be perfect, and it’s true that advisors without a CFP can be very helpful, too. But when you’re looking for a first financial advisor, you want to try to guarantee as best you can that the person you’re meeting with is legitimate, and one of the best ways to do that is by checking their credentials. Again, just because a person has a CFP doesn’t mean they’ll automatically be the perfect fit for you, but it’s always a good thing to confirm when you’re picking an advisor.

3. You should opt for a fiduciary financial advisor

This is separate from visiting a financial advisor who has a CFP, though CFPs will likely hold themselves to fiduciary standards. Essentially, a fiduciary follows the ethical agreement that they will always act in the best interests of your finances, no matter what. Hiring a fiduciary is just another way you can try to ensure that your financial advisor is truly doing what’s best for you, and that they have no standing to benefit from you following their advice. Fiduciaries can be more expensive, so keep that in mind. Also, fiduciaries could hypothetically still breach your trust — it’s just that doing so would have serious consequences for them, including criminal charges or loss of their job. This layer of extra protection can give you a lot of peace of mind with your finances. 

4. Consider your budget

Some financial advisors will charge you per session, per hour, or a yearly advising fee. Others will take a certain percentage of the financial assets that they manage (depending on the type of financial planning you’re receiving). Decide what budget you’re comfortable with ahead of time, so that you have an idea of what types of financial advising services you can afford. 

5. Don’t be afraid to meet with multiple advisors

At the end of the day, a financial advisor should be someone you personally trust and want to have manage your finances. If you feel like you’re not clicking with the advisors you meet, don’t be afraid to try again. The nice thing about personally hiring a financial advisor is that you have complete control over whether you decide to work with them or not; if you’re feeling uncomfortable for any reason, don’t feel sure about the advisor you chose, or just want to keep exploring your options, you should probably keep looking.