Choosing a financial advisor is an important decision. By collaborating with a financial professional, you can optimize opportunities and take advantage of planning strategies you might otherwise not have known about. A financial advisor should be a trusted partner you can go to for advice and objective guidance when you’re faced with tough decisions.
But there are a lot of financial advisors out there, and not all advisors are the same. In fact, not all advisors conduct themselves ethically or are held to the same ethical standards. So how can you determine whether a financial advisor will be a good fit?
To help you make the best choice, here are 3 criteria to consider when deciding to partner with a financial advisor.
There are many types of financial advisors out there, including but certainly not limited to:
Some gray area and overlap exists between the services different types of advisors offer. For example, an investment advisor might specialize only in managing assets and investment advice. A certified financial planner, on the other hand, might offer comprehensive planning strategies to help you reach your goals in addition to providing the services above.
An advisor’s title can’t tell you everything there is to know about their services, but it’s a good place to start. If you’re looking for goals-based financial advice, you may want to interview certified financial planners. If you’re looking for a more hands-off relationship with an advisor who manages assets directly, a portfolio manager might be a better option.
Advisor specialties should be one of your most essential considerations. Some advisors specialize broadly in retirement planning, while others specialize in narrower niches, such as retirement planning for physicians or portfolio management for real estate investors.
Some advisors serve specific age ranges, others serve specific professions, and others even specialize in helping women or divorced individuals with their unique circumstances. In all likelihood, there’s an advisor out there who specializes in serving your particular needs.
In today’s virtual world, it’s less important that your advisor is located physically near you, and more important that their specialty aligns with your needs. Although being able to meet with your advisor face-to-face is nice, most work can be done through videoconferences, especially with features like screen-sharing and recording.
Finally, you should consider every potential advisor’s credentials and philosophies. The truth is, anyone can start a financial advising firm, and they don’t necessarily have to have any credentials to do so.
For most financial advising services, we recommend choosing an advisor who is a fiduciary, which means they have taken an oath to always serve their clients’ best interests. Additionally, we recommend partnering with an independent advisor, because independent advisors run their own firms and are not tied to selling any specific proprietary financial products that could create a conflict of interest.
As for credentials, we believe the CERTIFIED FINANCIAL PLANNER® (CFP®) designation is a noteworthy credential for advisors to carry, as this credential is earned after years of study, service, passing of exams, and demonstrated commitment to ethics. Other noteworthy credentials include the Chartered Financial Consultant (ChFC), Chartered Financial Analyst (CFA®), and Accredited Investment Fiduciary® (AIF®). Not all credentials are created equal, so make sure you know what a credential entails when you see it after an advisor’s name.
In addition to determining your advisor’s credentials and designations, you should also ensure their philosophy regarding investments and wealth management aligns with your values. You can usually find out about a financial advisor’s philosophy on their website, but we also highly recommend asking them to tell you more about their philosophy during a consultation call.
Above all, you should partner with a financial advisor you trust. Our team at Wealth Advocate Group are fiduciaries who are committed to taking care of our clients as if they were family. If you’re interested in learning more about our approach and how we help advocate for your financial well-being, give us a call at 440-505-5751 or email jcohen@Wadvocate.com to schedule an appointment.
Jason Cohen is Chief Operating Officer and wealth advisor at Wealth Advocate Group, LLC, an independent, fee-based wealth management company. Jason has 15 years of experience and spends his days managing firm operations, including portfolio trading and analysis, training of new advisors, financial plan production, and client relationship management. Jason specializes in serving real estate professionals and other independent contractor business owners, helping them navigate their unique financial challenges, such as unpredictable cash flow and tax issues, so they can achieve financial independence and freedom from worry. Jason has a bachelor’s degree in public management from Indiana University and is a CERTIFIED FINANCIAL PLANNER® (CFP®) professional and believes that everyone should have access to comprehensive financial planning. He is passionate about doing his best for his clients and setting others up for success. Outside of the office, you can find Jason staying active in a variety of sports and spending time with friends and family. Learn more about Jason by connecting with him on LinkedIn.
