The search for a financial advisor can get confusing very quickly – from the different terms used (financial planner, wealth management advisor, financial advisor, financial representative) to fee structure and compensation. How do you know if they are the right fit for you?
How is Their Reputation?
- Did you find them through a friend, or even a friend of a friend, or through a Google search? Can you trust their judgment?
- Have you validated them on FINRA’s BrokerCheck® to see if they have any complaints – or to assess the breadth of their practice and experience?
- Have they earned any industry accolades?
What Services Do They Offer?
- Are they solely a wealth management specialist, assisting primarily with investment strategies?
- Do they offer fee-based planning to develop a plan tailored specifically to you?
- Do they offer a full spectrum of planning that covers investments, risk mitigation/insurance, tax mitigation, asset distribution, income planning, business planning, philanthropy, estate planning, intellectual property planning, and other options?
- Do they operate on a proprietary platform, offering options from only one company? Or can they offer solutions from many companies?
- What other specializations do they offer that you may need?
Are they a Fiduciary
This means that they are ethically and legally obligated to act in YOUR best interest.
- Certain designations – such as CFP® (Certified Financial Planner®), CFA® (Chartered Financial Analyst), ChFC (Chartered Financial Consultant) and others – are held to a fiduciary standard.
Is the Plan Time Bound?
Are they tailoring your financial plan to your particular needs and goals across the short-term, mid-term, and long-term?
Do they have a value chain community?
- Are they well-connected with other trusted professionals (accountants, attorneys, lenders, bankers, real estate professionals, etc.) to whom they can refer when needed?
- Are the trusted professionals they recommend all within one business entity? This can lead to ease of engagement across a broad set of needs.
- Alternatively, do they engage trusted professionals outside their own business? This can provide you with independent thought and healthy challenges regarding your best interests when your personal “board of advisors” comes from multiple companies and perspectives.
- Do they interact collaboratively with your other advisors to understand “domino effects” of decisions that may impact the achievement of your goals, legal standing, tax situation, brand impact, and positive or negative leverage?
Financial Education vs Management
- Do they offer education via holistic financial planning, or are they looking to only sell products or investment management?
Depth of their Team
- Is there the risk of a critical point of failure if a key person is no longer there due to death, disability, transition, or hardship?
- Do they have a skilled support team around them to provide you with reliable and efficient services?
- Are they accessible and available to you?
Professional Manner and Work Style
- Do they make you feel heard and cared for? Or do they have the infamous mindset of “Shut up and dribble…we’ll take it from here and let you know how it’s going.”
- What kind of track record do they have? Do they have extensive experience in the financial planning world, or are they just getting started?
Flexibility
- Are they willing to get creative with your plan? Do they think out-of-the-box to ensure your needs are accommodated?
- Can they meet with you virtually / are they willing to travel to meet with you?
- Are they licensed in your state only or do they have the capability to work anywhere in the United States?
If you are seeking or have an existing relationship with a financial advisor, this list can serve as a helpful guide when searching.
Feel free to reach out to Jeff Hammer, CFP®, ChFC® at jeff@hammerforte.com if you have questions or would like to learn more. For help understanding sponsorships and your path to financial freedom, or any other path to financial freedom, join The Players Company newsletter.
