4 Qualities to Look for When Hiring a Financial Advisor

financial advisor drawing on white board

4 Important Qualities When Hiring A Financial Advisor

Honesty

When it comes to choosing someone to help handle your finances, it can be somewhat terrifying. Providing insights into your funds, investments and needs requires the right professional.. While any professional will identify himself or herself as trustworthy and honest, here is something to consider…are they making guarantees? While financial advisors are skilled professionals with a background in this industry, no financial advisor can guarantee results. If you’re being guaranteed returns, chances are this individual is not being honest and forthcoming.

 

Knowledge

Your potential financial advisor should be able to provide evidence to you that they are knowledgeable about the financial areas you need managed. Don’t misread this into thinking your advisor should speak over your head with corporate lingo you don’t understand. Your advisor should be able to explain the topics being discussed in a graspable, educated way. After all, Albert Einstein once said, “You do not really understand something unless you can explain it to your grandmother.” If your advisor is knowledgeable of the ins and outs of his or her trade, they should be able to articulate these insights in clear, logical ways.

Experience

This is a tough one. Not every financial advisor has been in practice for multiple decades, nor do they need to have been. Any advisor resting on their past laurels is not guaranteed to be a perfect fit for you as the regulations and industries of finance change regularly and last year’s success does not infer an assumed return this year. By the same token, you should strive to find a financial advisor who can identify and discuss how they’ve been able to successfully advise other clients with similar needs in order to provide additional assurance that your circumstances fit well within their wheelhouse. Ask for specific situations (not requiring identities of current or past clients, though) and what research and factors informed the advisor’s actions that helped create success.

Availability

Your finances, along with your financial circumstances, are always evolving and changing, just like the numerous markets associated with them. You need a financial advisor who is available to you based on your needs. For many, you may only need to communicate with your financial advisor quarterly. However, when preparing for a major financial decision, you will likely need more frequent communication. Speak to your potential advisor about their availability. What good is having a financial advisor if they are never available to give you advice when you need it?