What Should You Look for in a Financial Advisor?


Quick Answer

When searching for a financial adviser, people look for individuals with a clean background, individuals with more advanced financial training, such as a certified financial planner, and an agreeable pay rate. Sometimes, people look for financial advisers operating in niche markets, such as providing services for newlyweds, couples recently divorced and small businesses. Financial advisers also operate under a code of ethics: those adhering to fiduciaries offer a high level of commitment to clients, keeping their best interests in mind.

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Full Answer

When searching for qualified financial planners, most people perform some preliminary research. They might look up information on potential candidates, determining whether their personal and professional profiles prove a good fit. Soliciting recommendations from friends, coworkers and family members can help identify good advisers in the area. One area of consideration when choosing an adviser is pay structure. Some advisers operate on a commission basis. These advisers essentially work as salespeople: in addition to originally scheduled financial services, they might push insurance packages and other incentives on clients. For younger people or those with fewer assets, according to the Wall Street Journal, hiring financial planners on an hourly rate works best. Before enlisting help, potential clients often check credentials of their candidates, verifying the currency of their licenses and training. Asking candidates which additional financial services they perform helps too, as some companies and sole planners might help with additional financial concerns.

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