Checklist: What to Look for in a Financial Advisor
Choosing the right financial advisor is an important decision, as it can have a long-term impact on your financial health and goals. Feel free to print a copy and bring it with you to your next appointment.
Qualifications:
- What are their qualifications (e.g., degree, work history, certifications such as CRPC, CFP, CFA)?
- Are they continuing to grow by pursuing additional certifications?
- Do they specialize in areas that align with your financial needs and goals?
Fiduciary Duty:
- Are they a fiduciary, meaning they are legally required to act in your best interest rather than prioritizing commissions or fees?
Compensation Model:
- How are they compensated (e.g., fee-only, commission-based, or a combination)?
- Are there any hidden fees, such as a “platform fee,” beyond the advisory fee?
- Does their payment structure create potential conflicts of interest?
Communication and Compatibility:
- Do they listen to your goals and concerns rather than pushing products or strategies?
- Can they explain complex financial concepts in a way you can easily understand?
- Do they address your questions and concerns about returns, strategy, billing, or other matters thoroughly?
- Do they avoid pressuring you to bring over additional assets or purchase specific products or investments?
Honesty and Transparency:
- Have you checked their disciplinary history via FINRA’s BrokerCheck or the SEC’s advisor search tool?
- Have they been honest with you in the past, and do you trust them to prioritize your interests?
- Do they provide clear information about fees, potential conflicts of interest, services, and any changes to the contract?
- Have you received positive recommendations from trusted friends or family?
Services Offered:
- Do they provide services that meet your needs, such as:
- Retirement Planning
- Tax Strategies
- Investment Management
- Estate Planning
- Budgeting and Debt Management