Financial Advisor Checklist
Financial Advisor Checklist
By: Stacey Nickens
In the Fall, nature sheds its dead weight in order to prepare for the Spring growing season. Similarly, Fall and Winter are fantastic times to clean up your finances in order to better prepare for your future.
Working with a Financial Advisor can significantly help you in this planning process. The right Financial Advisor can look at your financial plan through objective, yet empathetic, lenses. However, you should always ensure that your Financial Advisor is the right fit for your and your family. Accordingly, before selecting a Financial Advisor, ask the potential advisor the following questions to make sure you are putting your money in the right hands.
What are the Advisor’s credentials? You should look for an advisor with certification credentials. Financial industry certification credentials include Certified Financial Planner or Chartered Financial Analyst. You can also look for someone who has advanced degrees in Finance, Economics, or related fields.
How long has the Advisor been working in the financial industry? You want to find someone who has enough experience to have gained nuanced knowledge of the financial industry and skills in client and money management. Ideally, your Financial Advisor will have 5 or more years of experience. Younger advisors can give wonderful advice; however, more time in the field usually bodes better for your accounts.
What is your Advisor’s industry track record? You can use BrokerCheck to see if your Advisor has a history of customer complaints or disciplinary action.
Will your Advisor put your needs first? Check that your Advisor is a Registered Independent Advisor. These advisors must act in their client’s best interest.
Who is in charge of your money? Check that your Advisor manages your money with a separate custodian firm. This separation ensures your Advisor can’t access your money for personal or illegal reasons.
What are your Advisor’s investment strategies? You should discuss your risk tolerance with your Advisor. You should also review your investment goals and desired asset allocation. Moreover, discuss when and how your Advisor will rebalance your portfolio. Finally, you should check to see if your Advisor will manage your portfolio directly or outsource that work to an employee.
How and when will your Advisor communicate with you? Learn about the Advisor’s communication methods, and discuss your own communication preferences.
Will your Advisor provide help with other investments? You can see if your Advisor will provide advice about investment accounts they do not directly manage.
Does your Advisor have an investment minimum? Some Advisors have a required minimum investment amount, so you should make sure you would qualify for their services.
What are the Advisor’s fees? Discuss your Advisor’s fee schedule and ask for a disclosure on any other forms of compensation the Advisor receives.
What does your gut say? After meeting with the Advisor, check to see what your instinct is saying. Often times, we know when a business relationship is or isn’t going to work out.
If you think ELM3 Financial Group may be a good fit for you, I encourage you to contact us and set up a consultation.
