5 strategies to know if you can trust your financial advisor

Every time I decide to go on a vacation, I always like to define my expectations.?I always want to know if I’d like to see the “best of” of this destination or if I’m in for a better experience by diving deep into local life.?

When I’m looking at having the latter, I always go with a tour guide that I can trust to help me achieve this. And of course, I have like a mini-checklist I use in evaluating tourist guides to know which to go with.

Your financial journey as you near retirement calls for even a higher evaluation when you’re looking to choose the right financial professional to bring along on the journey.

The last thing you want is having to deal with a financial advisor who is more interested in what’s in it for them.

With that said, you can trust your financial advisor if they…

●?????Operate as a fiduciary. This legally requires them to put your interest in front of their own.

?●?????Ensure you understand their recommendations. One of the biggest red flags is if you don't understand your investments. If your advisor isn't able or willing to explain them when asked, that's a big warning sign.

?●?????Don’t try to sell you an investment product that generates income for them regardless of your needs and goals.

?●?????Are transparent about their fees. Questions like, “Am I paying annually or monthly?”, “Am I going to pay by cheque regularly or will the fee be automatically deducted from my assets?”, “Am I paying based on level of performance or a fixed rate?” and the likes should be answered and clarified.

?●?????Keep in touch with you regularly. A financial advisor who doesn't keep you informed regularly on major happenings that could affect your portfolio could cost you money.

There you have it…your own mini-checklist for evaluating advisors. If you think you might need more personalized advice or would like another opinion to confirm your decision, speak to a professional for a second opinion.

Your trusted advisor,

Rachelle