It’s your first time visiting a financial advisor; you can’t wait to get your finances on track! But how do you ensure you get the information you need? Here are the seven things we recommend you discuss with your financial advisor when you first meet.
1. Qualifications and Experience
What experience does your financial advisor have? And not just with working in finance but also with helping with your specific situation. You want to work with someone with a history of being reliable and getting results—knowing they’ve invested time and resources into getting the proper qualifications helps paint a picture of the type of professional you’re working with.
2. How They’re Getting Paid
The all-important question: how will your financial advisor make their money? A financial advisor receives compensation in many ways, including fees, commissions, or hourly rates. One payment method isn’t generally better than the other if you’re working with someone trustworthy but be warned: commission-based financial advisors could lead you astray if it means lining their own pockets.
3. About Their Services
Check-in with your advisor about the services they offer. Not all advisors will offer the same services, so it’s crucial to know if you’re working with someone who can accomplish what you need them to. Some might specialize in estate planning, while others focus more on helping people with their taxes. It helps to know why you’re going in the first place; ask yourself what you need and see if the advisor can provide it.
4. Their Investment Philosophy
How does your financial advisor approach investments? Are they more conservative or aggressive? Are they more long-term-growth-oriented, or do they emphasize short-term gains? You want their investment philosophy to align with yours as much as possible. You don’t want to work with someone who will make risky moves with your money if you’re a risk-averse person!
5. Checking References
A quality financial advisor should have no problem forking over references for you to peruse. And once they do, don’t forget to reach out and ask those reference questions, too. For example, did the advisor help them achieve their financial goals? Were they responsive and communicative? These answers are essential to know so you don’t waste your time.
6. Worst Case Scenarios
What happens if something goes wrong? How does your financial advisor handle it? It’s important to know that you’re protected and there are measures in place to address any issues that might arise. This can give you peace of mind, knowing there is a plan to rectify potential problems. You also want to work with someone forthcoming should the worst-case scenario come to pass—not someone who sugarcoats or gaslights you into thinking everything’s fine.
7. Best Case Scenarios
How does the financial advisor measure success? Does it resonate with you? Setting clear, measurable goals with your financial advisor from the outset can help you stay on track and adjust as needed. That way, when you meet these goals, you’ll know how you want to improve your financial health further, with their expertise guiding your path.
