There’s no doubt that a financial advisor can make a big difference in your life. The only question is how do you find a good one? Here are some tips to finding a good advisor.
Look for Clarity
Financial advisors make money by charging a flat fee, earning a percentage of managed assets, or via commissions on sales. How they make money should be clearly stated. If you’re unclear on fees or charges, that’s a red flag. A good advisor will be crystal clear about every single penny you’ll be spending.
Use a Tool
You can ask friends or loved ones for financial advisor recommendations, but that doesn’t always lead to a good fit. Instead of only relying on word-of-mouth, try using an online tool like the one from HerMoney. The site’s referral tool can help you find an advisor that is tailor-made to your personal financial situation.
Get it in Writing
You want a financial advisor who is willing to provide any move they make, or suggest, in writing. If your advisor talks through everything and offers written details, you’re likely in good hands.
Look for Longevity
You want an advisor that has experience. Another good sign? If their associates and support staff have also been together for some time. That indicates a good working environment. Dig through the site and see if there’s some longevity among the advisors and the staffers. If there’s a lot of turnover, you might want to steer clear.