8 tips on how to select a Financial Advisor

Jun 8, 2022 | Finance

1. Speak to friends and family to see who they would recommend and why.
2. You need to feel confident in the advisor’s competency, objectivity and their responsiveness to your needs.
3. Trust and communication are very important aspects in any long-term relationship and the relationship with a Financial Advisor is no different, so take note and do not ignore red flags.
4. Make sure you’re receiving proper advice and not just another sales pitch. There are many sales people out there posing as advisors.
5. The advice you receive should be based on what is best for you as the client and not what is best for the advisor’s pocket in terms of commission. Do not be shy to ask about commission and fees. Which leads us to the next point;
6. Ascertain if the advisor is financially stable as desperation is a warning sign that there will most likely be issues experienced in the near future.
7. Ask as many questions as you need to, to gain absolute clarity. If an advisor makes you feel incompetent or unintelligent for asking questions, simply walk away. You can’t build a long term relationship with such an individual.
8. Competency, humility and empathy is what we need to look for in a Financial Advisor. Of the three, the most important is empathy. Being able to listen and understand your needs and provide comfort is vital.
9. Speak up if you are unsure or disagree with anything. Part of the advisor’s job is to make sure that you understand everything fully. Do not sign anything until you are completely satisfied.

Finding an advisor is not as simple as going with the professional a fund company, bank or insurance broker assigns to you. You need to actively search for someone who is going to work in your best interest and that takes some time. In the end you’re probably going to get better advice, save money and earn more while achieving your financial goals. That’s worth the extra legwork in helping you find an advisor that you can work with for decades.


Written by Ridhaa Damon

Ridhaa Damon is the Business Principal at LWC Holistic Financial Solutions

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