8 Qualities You Should Look for in a Financial Advisor

How do you find the right financial advisor or planner to meet your needs? They are out there, but how do you know if they’re right for you? Consider these eight important qualities to ensure you make the best choice. Your financial future depends on it!

What Do I Need From an Advisor?

For any person looking to improve their financial situation and secure a better future, finding the right financial advisor is vital. With so many firms offering services, it is easy to find conflicting advice or be advised on products that are unsuitable for your needs. There are certain qualities that you should be aware of when seeking out a reliable advisor, as detailed in this article here!

A key quality of an effective financial planner is one who listens carefully to your goals and then designs strategies aligned with those aims. They will make sure that you understand which investments best suit your unique circumstances so that you can begin working towards achieving your objectives quickly. A solid advisor has clear communication skills as well as demonstrated expertise in areas such as tax planning, retirement planning, estate planning and more!

Client centered focus

Professional advisors tailor your plan to meet your goals. They don't push products on you simply to meet a target or to get the most commission. Check whether your advisor represents a wide range of products and service options or if they're restricted to only proprietary solutions their company sells. The more options, the sounder and more unbiased the advice. A good financial advisor will be able to suggest a solution that meets your needs but is also cost effective. Good financial planning requires an understanding of each client's individual circumstances – not just numbers on paper. A good financial planner understands that there is no one size fits all approach when it comes to investing – what works for one person may not work for another.

Holistic financial view

Sound financial advice considers more than just your income and assets or the types of asset classes you are prepared to invest in based on your risk profile or life stage. A good financial advisor will take the time to learn about your entire financial situation, investigating your banking, investment, insurance, credit needs and how this aligns with your goals. Only by understanding your spending habits, debt obligations, life goals, and other money matters can a financial advisor truly begin to develop a meaningful and accurate strategy for you. This holistic view also means that an advisor is able to identify any potential conflicts of interest between your various financial accounts and recommend strategies to mitigate them. It’s not uncommon for banks or fund managers to offer incentives such as higher interest rates or commission-based products if they know you have significant deposits with them already; an independent advisor can help ensure that these incentives don’t compromise your overall strategy.

Trustworthy

You need a financial advisor you can trust so that you have confidence in their recommendations. If you feel anxious, fearful, or stressed out after discussions with your advisor, trust your instincts and end the relationship. Getting a strong referral from a friend or family member can be the first step in finding the right financial advisor. Consider the background and reputation of the company the advisor works for. Are they local? Do they have a successful track record? Be wary of hot-shot planners who seem to be too good to be true – they usually are. In addition, you should always ask about an advisor’s credentials, experience and how long they’ve been in business. Ask if there is a fee structure involved; if there is, it should be clearly outlined before any work begins. An honest advisor will make sure that both parties understand each other up front.

Know Your Needs

Depending on your life stage, the type of advice you'll need will change. If you're in your 20s or 30s, you may be more concerned with saving for retirement or buying a home. If you're closer to retirement, you may be more concerned with money and making sure your assets last. Do you need help with investments, retirement planning, estate planning, or something else? Being aware of the type of advice you need will narrow down your search. It's also important to know what kind of insurance coverage you have, as well as any gaps that might exist. A good financial advisor can fill those gaps by helping you get additional coverage at an affordable price.

Keep it Simple

If you work with a good advisor, he or she will keep you updated on current financial issues and possible opportunities. They'll make complex financial concepts understandable. An advisor who withholds information or doesn't take the time to make sure you're completely clear on their advice, isn't worth your time or money. A good advisor will also recommend products that fit your needs and not just push whatever product pays them more. For example, if you have life insurance through your employer, an advisor should be able to explain why it's better than buying commercial insurance instead.

Financial Planning Expertise

Likewise, if you take a trip across the country without a map or GPS, you will have difficulty navigating. In the same way, if you try to steer your financial future without clear direction, you may run into troubles and difficulty. As life circumstances change, your advisor should help you change your financial plan to make adjustments and include changes. This is what I call being client-centric—and it’s one of my core values. I believe that every client deserves individual attention, as well as expert advice that meets their unique needs and goals.

Provide an Ongoing Service

Your financial advisor should get together with you and your significant other on a regular basis throughout the year. That level of contact should continue until your relationship comes to an end. There are way too many instances where people come into contact with a financial advisor, create a plan and then just receive statements, with no interactions or explanations. If something is wrong with your finances, that’s not good enough. If you’re going to invest in professional help, make sure it’s ongoing and that there is a clear line of communication between you and your financial advisor.