How to Find a Great Financial Advisor

I’ve been a financial advisor for 25 years. During that time, I’ve come to learn there are several reasons why some of you reading this blog post may be hesitant to interview financial advisors and select one with whom to work.

Some of you may have never worked with a financial advisor before - regardless of your age or stage in life. Whether you’re just getting started with your professional career and are looking for financial advice, or you’ve managed your investments on your own for years and are unsure how an advisor can benefit you, I understand your hesitation.

Others of you have, unfortunately, had bad experiences with financial advisors before. Maybe you worked with someone who had the title of “financial advisor,” but really seemed more like a salesperson. Instead of offering you personal financial advice based on your unique situation - and educating you about the investment option he or she was recommending you consider - this person may have been seeming to push a particular mutual fund, stock, or investment vehicle without considering what makes you and your family unique. If this sounds like you, your view of the field of financial advisement may sadly be tainted.

Wherever you fall on this spectrum, I am here to offer you some advice on how to find a great financial advisor.

Tip #1 - Interview Financial Advisors Before Choosing Someone With Whom to Work

Whenever selecting a professional to partner with, it’s always a great idea to interview them first. Some of you with children may have researched and then interviewed, pediatricians while you were expecting your first child. If you need work done on your house, you have likely heard it’s best to meet and then get three no-obligation quotes before selecting a contractor. And if you’re looking for a care facility for your elderly parents, you of course want to tour the location and meet the staff before deciding on a place for your loved one to live.

The same is true when it comes to selecting a financial advisor. After all, a financial advisor will be your go-to person for financial planning questions and advice regarding important financial decisions you’ll make throughout your life, such as:

• How much should you save for retirement?

• What should your monthly budget be?

• How much house can you afford?

• How much should you save for your children’s college funds?

When you interview financial advisors, I recommend you ask the following questions:

• How Long Have You Been a Financial Advisor? 

While novices can be great financial advisors, there’s something about decades worth of experience that speaks for itself.

• Do You Offer Investment Advice Only, or Do You Also Help with Other Financial Planning Tasks? 

You’ll likely find that you have several financial questions, outside of investing, and need someone familiar with your family and your finances to help make suggestions over the years.

• On Average, How Often Do You Meet with Your Clients? 

All financial advisors should meet with their clients at least once per year to review their portfolio performance, and when life changes occur, or a client has a question about their portfolio performance.

• How Do You Get Paid? 

Commission-based financial advisors have a sort of conflict of interest, in that they are financially incentivized to sell certain investments because selling them gives them a paycheck. A fee-based financial advisor gets paid a small percentage of your portfolio on a quarterly basis. 

Tip #2 Look for a Financial Advisor Who’s Personable

While it’s true that financial advisors like myself love numbers, the best financial advisors love people, too. Over my 25-year career, I’ve come to develop great professional relationships with my clients as I advise them to  help make the best financial and investment choices for their families.

Tip #3 Your Mom’s/Brother-in-Law’s/Neighbor’s Financial Advisor Might Not Be the Best Advisor for You

No matter how you slice it, we live in a society in which talking about personal finances - even with our closest friends and family members - is still considered taboo. You may be tempted to choose a financial advisor based on who your coworker, neighbor, or cousin is working with. But unless you know the person referring to you is smart and focused on their money, you may want to think twice about their recommendation. Look for people you know who are winning with money - perhaps a professional mentor or a very generous family at your church - for recommendations, not just the neighbor you meet at the mailbox every day after work.

I work diligently to do everything possible to give my clients the best financial advice - for things outside of traditional investments such as how much house they can afford or whether or not they should choose one college for their child over another based on tuition cost. The goal for my clients is to help them become financially confident and the type of people who make good recommendations to their friends and acquaintances. But still, every year I gain several new clients who have no connection to my firm, but have heard of me through my blog posts, social media,  interviewed me, and decided to partner with me for their investment and financial planning advice.

Contact Me to Schedule an Interview I’d love to meet with you - either in person or over the phone - to learn more about yourself and your family, your financial needs and goals, and how I can best advise you so that you achieve them. To reach my office, call Snow Financial Group today at (985) 792-5232.