How To Choose A Financial Advisor

We all know that we need to find ways to smartly manage our money, but that doesn’t necessarily mean we all know how to get started, either. You may have been curious before about using a financial advisor. 

You may even have begun the process of picking one out, but something stopped you. Have you felt intimidated or overwhelmed thinking about choosing a financial advisor to help you manage your money? Are you afraid you won’t pick the right one, or you won’t know what you’re talking about when it comes time to make a plan? We’ve outlined here some of our best tips to help you pick a financial advisor that will best fit your needs. We take away all of the guess work, so you can focus on what matters most: making a sound plan for your best financial future.

Comparing Different Types Of Advisors

One of the crucial things to keep in mind when considering financial advisors is the importance of getting more than one opinion. Just like when you’re taking contracting bids for remodeling work on your home, you should always get different quotes to ensure you’ve found the best fit. It can’t be overstated that a financial advisor is someone who will be closely tied to your money, so you better feel like you can trust them. You want to know you have a rapport with this person and that your visions are aligned. As such, set up a list of financial goals for yourself and then take several meetings with different advisors, so you can pick someone who’s personality and skill set line up with your vision for your financial future. 

Have Some Set Goals In Mind

As mentioned, it can be helpful to know in advance what your top financial goals are. Maybe you hope to buy a second home either for vacation or income possibilities. Maybe you want to be able to retire early, or you want to set aside something for your kids. Spend some time to sort this out as it will be key in putting together your financial plan. Similarly, it’s important to know what financial markers aren’t as important to you. Maybe you’re willing to go down from two cars to one, maybe you’re willing to downsize your home. Knowing what you do and don’t want for yourself is a big part of the conversation [1]. And finally, it’s a good idea to have some notion of where your finances currently stand so that you can paint an accurate picture for potential advisors. They will help you sort out any problems, of course, but the more knowledgeable you are on your own money standing, the better. So take some time to reacquaint yourself with your accounts and debts, you don’t want to be in the dark when it comes to your finances.

Always Read The Fine Print

There’s a fair chance that some paperwork will be involved with choosing a financial advisor. After all, you are giving them access to some of the most private areas of your life. Make sure to read any fine print of literature handed your way. This is where you can weed out any advisors you’d rather not work with. Maybe you learn one takes an unfairly high fee, or maybe you find out one benefits in some way from your investments [2]. You also want to make sure you’re protected from fraud, embezzlement or unscrupulous trading practices. You want an advisor who is looking out for your own best interests, and you should never sign any documents until you’re comfortable to that end. In fact, it is always a good idea to have a lawyer look over any such financial papers you might be asked to sign. Take your time with this part of the process, as it is crucial to establishing that trust that is oh so important for the relationship between financial advisor and client. 

Red Flags to Look Out For

A good understanding of what you are looking for is one thing, but you also need to be on the lookout for what you don’t want to see. A few red flags can alert you to the fact that a certain financial advisor may not be for you. Keep an eye out for anyone who is promising you easy money. If money was so easy to make, everyone would be wealthy, so be wary of someone who is over promising. Similarly, keep an eye out for anyone promising you a get rich quick solution, as there aren’t that many shortcuts on the road to financial success. And also tend to stay away from someone pressuring you into making financial choices you aren’t comfortable with, or someone trying to talk you into investing more money than you think you can afford to spend. Trust your intuition, and when in doubt consider getting a second opinion on the matter in question.

Moving Forward With Confidence

So now you better understand some of the process of picking a financial advisor and what to look out for. Make sure to talk to more than one person, and be wary of anyone promising you easy money or get rich quick schemes. Look out for the fine print and don’t get taken in, and make sure your goals are aligned before settling on someone. Remember, this person is there to support your needs. While a financial advisor may seem like an intimidating thing, the truth is someone skilled in this profession can help most anyone, regardless of how much money that person has to work with. The key is to keep your future in mind. Financial planning is a crucial part of setting yourself up for success and ensuring you have the retirement that you deserve. Do not hesitate, the time to start planning for your financial future is now!


  1. How To Choose A Financial Advisor – Forbes Advisor
  2. A 6-step guide to choosing the right financial professional for you (