You’ve done it. You have decided that it is time to add the services of a financial advisor. Now what? Where do you start? Retaining a financial professional is a big decision that can be daunting.
Treat your search like you would hiring a candidate for employment
The individual you end up choosing will need to be vetted so be bold and ask questions. Take your time in making this decision because you are in charge here and you are the boss. If you are prepared and know what to look for; then you are more likely to confidently make an informed decision and select the best person for the task.
Check the credentials of your candidate
There are governing bodies that regulate the industry and all duly licensed practitioners within it. Go online and verify any registrations or licenses that are claimed.
Inquire into their investment methodology. Every advisor should be able to articulate their investment philosophy. They should be able to state what their goal is for your money and how they plan to achieve it. It is also appropriate to have them show some examples of how this is achieved by reviewing some sample, anonymous portfolios.
What level of service can be expected for your investment amount?
Tiered service levels are a reality in the investment advisor space. You must have a clear understanding as to whether or not the service level is tiered and, furthermore, what the level of service is for your specific case. You can then determine whether that service level is satisfactory for you and can hold the advisor accountable for delivery of that service mandate.
How do they answer questions?
You have every right to ask the questions that you have and you are entitled to a complete, clear answer. Your advisor should not be condescending and should never brush off your question as too complex or not something you have to be concerned about. Ensure that you are receiving an appropriate response to your questions.
Trust your gut
The truth is any advisor can say just about anything to gain your trust and win your assets. This is where you will have to trust your gut instinct. This could be simple or more complex depending on how tuned in you are to your intuition.
Repeat all of the above until you are satisfied
Be prepared for the reality that this process may take some time. Think of it like a courtship. Sometimes you know immediately when someone is not right for you, other times it may take some time to either qualify or disqualify a candidate but stick to it. A well chosen advisor can make or break your investing experience.
