How to choose a financial advisor
When you set out to choose a financial advisor, make sure you have more than just a name and professional credentials.
Here are a few guidelines that will help.
Step one is to decide between a fee-only financial advisor or an advisor that gets paid on commission. You’ll also have to decide if you’re willing to work with someone remotely — by telephone, Skype, or email. Or, if you prefer someone who’s close by so you can meet and talk things over face-to-face.
To understand the differences between types of advisors, see Why Fee Only?
Also, be sure to:
1. Use FINRA BrokerCheck. Make sure that the investment professional you’re talking with — and his or her firm — are properly registered.
2. Talk with several financial professionals. Ask about their:
- Registrations, licenses and professional credentials
- Areas of specialization
- Products and services
- Investment experience
3. Make sure you ask and understand how a financial advisor gets paid. A fee-only investment professional is typically paid in one or more of the following ways:
- An hourly fee
- A flat fee
- A percentage of the value of the assets they manage for you
- A combination of the above
