If you are getting serious about investing or managing your personal finances, it may be time to think about hiring a financial advisor. Before you take that step however, there are a few things to think about. It is vital to make sure that you are working with someone that is qualified to handle your money. By taking the steps to verify their abilities now, before you become a client, you can save yourself a lot of trouble in the future. Here are just a few questions that you can ask before you pick a financial advisor.
1. Do they work for a respected company?
While there is nothing wrong with going with a financial advisor that is self employed, there is more safety in working with one that is employed by a larger company. You'll have more recourse if something does go wrong, and these employees will normally have to adhere to a specific code of ethics in order to remain employed by that company. For those that are just starting out, this is probably the best financial advisor to have, since there is more security.
2. What kind of education do they have?
It's one thing to call yourself a financial advisor, and it's quite another to have the benefit of a solid education to back that up. Ask prospective advisors where they went to school and learn more about their alma mater before jumping in. Just remember, there is merit in small schools as well as larger well-known schools.
3. Will they provide you with references?
While financial advice is very personal, most financial advisors will be more than willing to provide you with testimonials or references. Follow up with these references and do your homework to make sure that their past clients are indeed pleased with their services. You can learn a lot about a financial advisor by the way that they treat their clients.
4. What is their financial outlook?
If you are interested in small investments and being cautious, a bull-like financial advisor may not be the best fit for you. It is best to find one that has the same financial outlook that you do to avoid confrontation and potential mismanagement in the future. This carries the same importance as their personality and can have a dramatic effect on your future business relationship.
5. Do they have a good track record?
Always run the name and phone number of a financial advisor through the Better Business Bureau to make sure that they have a good track record. While scam artists commonly change their name, it is still important to go through this step and do your own due diligence before you entrust someone with your hard earned money. Chances are, if they have burned someone in the past, there will be a record somewhere of their exploits. Check through local papers and online to see if you can find anything before you hire your new financial advisor.
Photo Credit: 1
Originally posted 2008-11-25 05:18:28. Republished by Blog Post Promoter
Related Posts -
Do You Have to be Thrifty? As the economy continues its upheaval, the word thrifty seems to be on many people's minds. Is it absolutely necessary to be thrifty in times of economic uncertainty? There are many schools of thought on the subject, and while at first glance, it may seem like the only economical choice,...... -
Top 3 Things to Learn About Personal Finance Regardless of your age, position in life, or your financial goals, there are a few things that we all need to learn about personal finance. Once you have the basics down, everything else can just flow naturally. These tips are the strong foundation upon which you can build your financial...... -
Sunday Money Madness Sunday Money Madness is your guide to the rest of the blogosphere on personal finance. The Digerati Life had a guest post from a HandyMan. Remodel Your Bathroom! Try 3 New Ideas To Freshen Up Your Bathroom is a excellent use of debt and they increase the value of your home....... - Review: The Teen's Guide to Personal Finance: Basic concepts in personal finance that every teen should know. Time is a resource that many teenagers don't realize is their greatest resource for finacial independence. "The Teen's Guide to Personal Finance" is a tome that will provide teenagers with important financial lessons, in a manner which will pull their interest and convey itself effectively in its intended task. The......
- Review: Why Smart People Make Big Money Mistakes and How to Correct Them By Gary Belsky and Tom Gilovich This fascinating book by a popular financial journalist and a college professor may not be the newest book on the shelf, and it may not have the most hype, but by far, it is one of the most interesting personal finance books we have ever read. This book goes where......
Related Websites - 50+ Personal Finance, Investing, And Money Tweeps Worth Following Miranda writes for Bankling, a personal finance portal, which contains both a blog, and a tools section that contains resources like the best bank CD rates, the best savings account rates, online mortgage rate calculators, and more. These days, it's all about Twitter and the tweeple there. While many (including......
- Personal Finance Links (Avatar Edition) This is coming a little late, but I wanted to make mention that if you haven't seen Avatar you should definitely go. I didn't really have much interest in it, nor did I know anything about the story, but after seeing it three times I can say it's a great,......
- Manufacturers: Weber Weber fine acoustic instruments are manufactured by Sound to Earth in Logan, Montana. The company has steadily grown, moving from Bozeman recently to accommodate its expansion. The 25 employees make mandolins by hand in an old Logan schoolhouse. The move was necessary because Weber plans to expand their product line......
-
Finovate Startup 2009 Live Twitter I am attending Finovate Startup 2009. It is an action packed 1 day format which I belive will lend itself perfectly to a live twitter. Stay tuned it should be an amazing day. http://twitter.com/BlogTrafficExch In the break I have scheduled some talks with SimplFi, Mint, and Calendar Budget. I am...... -
Personal Finance Resource Links 05-10-09 Happy Mother's Day!! Make sure you appreciate all of the moms in your life today. It's supposed to be nice here in NYC so I think we'll be getting outside for some family fun. (If you haven't gotten anything for Mom yet check out my Ways to Save on......
Categories:
Investing, Money, Personal Finance
Tags:
3 comments ↓
You omitted the most important qualification: Are the fee-only or are they compensated based on your investment selections or amounts?
Yeah, I agree with ToughMoneyLove, you need to find out how they charge. Other things to consider would be what is their service model, can you trust them, and are they personable. Most people don’t want to work with a jerk.
I understand your comment on having someone who is employed by a company providing greater security, but don’t underestimate the fact that a lot of times employees have quotas, sales targets and revenue goals they must meet in order to stay employed. Someone who is independent doesn’t have to worry about a boss hammering them to sell something.
I believe bullet number 5 is a big one when picking a Fiancial Advisor. You must do a thorough check on the Financial Advisors background. It’s sad to say but, you need to be extremely careful with your money these days. People are becoming more and more corrupted in today’s world. May I say Bernie Madoff!
Leave a Comment