Excellent Tips for Choosing a Financial Advisor

A good financial advisor puts the client’s best interests first: understands their needs, understands their situation intelligently, and works hard to achieve what they hope to achieve financially in a given period. They must be honest, trustworthy and demonstrate a sense of ownership of the client’s business and finances as if the losses they may incur are also their losses. By storing these values in your financial planner, you can be sure that your net worth will be well taken care of.

The main areas by which you can assess how qualified and competent financial advisors are:

Authority. Eligibility for a financial planner is reviewed and certified by the Certified Financial Planner (CFP) Standards Board. Board certification is the recognized standard of excellence for financial planners. The certification ensures that the financial planner meets the CFP Board’s education and experience requirements and adheres to and follows the CFP Code of Ethics. Check your background and search the internet, starting with the Financial Planning Association (FPA) database.

Experience. Look for a financial planner with at least four years of professional financial advisory experience. The expertise and experience in the financial industry should be enough for your financial planner to understand how the industry works, network, and learn to put the client’s best interests first.

Randomly test the experience and knowledge of a financial planner in the areas in which they engage in financial planning: portfolio structuring (individual clients), taxation (small and medium-sized companies), benefits packages (large companies and corporations), and other related financial matters, about your situation. Look for a financial advisor who has worked successfully with a client with a similar profile or needs.

Compensation. Some investment and financial experts view the source or majority of a financial adviser’s income as determining their loyalty and approach. Therefore, it is advisable to hire financial advisors on a fee basis who receive no commission on the investments and financial products their client’s purchase.

While it is not completely prohibited from selling or having an interest in buying specific properties or assets, a person who attends to someone else’s financial planning needs and has direct access to how to meet those needs can be of dubious credibility when it comes to offering you realistic investment options.

Character. Many financial guides forget to include character as an important factor in determining a financial advisor’s competence and success, but this may be the most important indicator. Respect the corporate and personal values of the individual. Do they listen to you when you talk about your financial problems, including the drama that comes with it, if any? Do they seem impatient, interrupt you, and seem wise?


If a financial planner is accommodating, a good listener, empathetic, and understanding, you may have a gem of a financial planner.