If you’re interested in improving your finances, seeking guidance from a qualified financial advisor can be a game-changer. Finding an advisor who aligns with your goals and values is key to a successful partnership.
Here are four positive signs you’ve found the right financial advisor, plus one red flag to watch out for.
Sign No. 1: They Prioritize Listening
A great financial advisor knows that each client is unique. They take the time to listen carefully to your financial goals, concerns, and aspirations.
According to certified financial planners, listening and asking thoughtful questions sets the stage for a customized plan that truly fits your needs.
Sign No. 2: They Are Transparent About Fees
Transparency is essential when it comes to fees. The right financial advisor should clearly explain how they are compensated through fees, commissions, or a combination. Some also require a minimum of investable assets to work together.
For example, if you have over $150,000 in investable assets, you should check out this free matching service to find vetting advisors in your area. (Most will offer a free initial appointment.)
This openness helps build trust and ensures you know exactly what you’re paying for, so there are no surprises later. For more details, visit the Investor.gov’s guide on investment fees.
Sign No. 3: They Have a Strong, Verifiable Background
An advisor’s qualifications and history speak volumes. Use tools like FINRA’s BrokerCheck or the SEC’s public disclosure records to confirm your advisor’s credentials and check for any past issues.
A trustworthy advisor should not only be open about their background but will encourage you to conduct due diligence.
Sign No. 4: They Educate and Empower You
A quality financial advisor should go beyond just telling you what to do; they should explain the reasoning behind their advice, empowering you to make informed decisions. This company offers real-time financial tools, live conversations and personalized financial advice.
You should leave meetings feeling knowledgeable and confident about your financial direction, not overwhelmed or confused.
Red Flag: They Don’t Listen
If you notice that an advisor is doing most of the talking and not allowing you to express your needs or ask questions, it’s a sign to be cautious.
An advisor who doesn’t listen is unlikely to create a plan that aligns with your personal goals.
Also, be aware of anyone who seem more of a salesperson than an advisor.
Moving Forward with Confidence
Choosing the right financial advisor can make all the difference in achieving your financial goals. Look for transparency, active listening, and a willingness to educate you. Talk to several candidates: comparing is how you’ll know when you’ve found the best.
Keep an eye out for any red flags, such as an advisor who doesn’t take the time to understand your unique situation or that your gut feels isn’t trustworthy. With the right partner, you can confidently navigate your financial future.