Financial Advisor - Do I need one?  Why?

I recently attended a mid-year review with my financial advisor and the outlook presented was intriguing.

After thinking about what was said I thought I should post something about the meeting. Then I realized that we have never discussed financial advisors or any other professionals you might want to have available to talk to about your financial and long-term goals.

So for starters, who needs a financial advisor?

I feel unless you are in the business of offering financial advice you should consider a financial advisor.

·        They can offer advice on where they see the market going, give you access to products/services you might not otherwise qualify for or even know exist.

·        They can help you make sense of your 401k, 403b, etc as well as other company offered benefits.

·        A financial advisor can also help you build a financial plan to cover you today and into the future.

How do I find a financial advisor?

1.      You can ask for recommendations from friends and family

2.      Prior to COVID-19 advisors would invite potential clients to meet and greet lunches or dinners.  You would receive the invitation in the mail and you would get a free meal and listen to the advisor talk about the economy and how they assist clients.

3.      Look for someone in the yellow pages

4.      Ask your accountant, tax attorney, lawyer for a recommendation/referral

5.      Ask the financial firm your company uses for your 401k plan for suggestions

This is just a shortlist of ways to find a financial professional.

Once you have decided to hire a financial advisor, it is time to do your due diligence.

·        You want to check the better business bureau and the SEC to confirm the person you are considering hiring is not under investigation for fraud or mismanagement of client funds

·        How long they have been in business

·        Consider asking them for referrals so you can talk to existing clients and see the kinds of opportunities they have recommended and how the client feels about the advice the financial advisor gave them.

Finally, once you decide that this person looks like a good fit call and make an appointment and actually talk to the advisor. Confirm when making the appointment that this initial visit is free as you are looking for a financial advisor and not ready to commit to anyone at this time.

When you go to the initial meeting bring your financial questions to see if the ideas the financial advisor presents are in line with what you are comfortable with. More importantly in this meeting you want to see if the advisor understands your concerns, listens to you, or do they cut you off and suggest things without really hearing you.

Also, are they a fee-based planner or do they make money by selling products/services to their customers? The advantage to a fee-based planner is they charge fees for the services they offer and can be impartial when recommending products/services they offer you as they are not chasing commissions to stay in business.

These suggestions are valid for any financial professional you consider working with. Your accountant, tax attorney, personal attorney, financial advisor even business partners should all be reviewed even interviewed prior to selecting them to do a job for you.

I believe in you!