Read This before Hiring Financial Advisor

Many people may feel overwhelmed when it comes to dealing with their finances. That is when people typically turn to hiring a financial advisor. A financial advisor can help you reach specific financial goals. For example, if you want to prepare to buy your first home, or prepare for retirement. These financial goals can be achieved if you need extra assistance. However, it is important to know some aspects about getting the right financial advisor so that you don’t make a decision that can hurt you in the long run.

Research is Key to Finding the Right Fit

Before deciding on a financial advisor to manage a very vulnerable and important aspect of your life, you will want to look into who they really are. First make sure you understand your goals and expectations of hiring a financial advisor. You will want to ask yourself why you are seeking help and what you hope to gain as a result. Once you know your goal, you can find a financial advisor that lists your goal as their specialty. From there you will want to find an advisor that has a lot of reviews, and qualifying credentials.

CFA or CFP credentials are important tools to verify the certification of your potential financial advisor. You can confirm these certifications online with special tools.

Your Gut Instinct is Important

While it is important to see that your financial advisor has a reputable history, you always want to trust your instincts. If you are not getting a great vibe/energy from your potential advisor’s plans with your finances, then make sure you trust yourself.

There are countless strategies that financial advisors can deploy when trying to help their clients reach their goals. However, an aggressive strategy may not sit well with a passive person, and vice versa. Make sure to be clear about your expectations and have a conversation with your potential financial advisor if you don’t like their initial pitch.

Make Sure They are a Fiduciary

In order to make sure you get a financial advisor that is a fiduciary, you must first understand what that means. According to Investopedia, a fiduciary is “a person or organization that acts on behalf of another person or persons, putting their clients’ interest ahead of their own, with a duty to preserve good faith and trust.” This ensures that they will be acting on your best interest and not their own.

Understand Applicable Fees


There are different payment models that financial advisors use. However, one of the more common ways of repayment is the fee-based model. This will charge the client a flat fee for the services of the financial advisor. You want to make sure you understand all and any fees associated with getting the financial advisor you are interested in.


A financial advisor can be a great asset when it comes to helping you reach goals for yourself. However, you want to make sure you don’t make any rash decisions when choosing who will be helping you with your finances.