4 Questions to Ask When Choosing a Financial Advisor

You’ve decided you want help investing your money, and you’re in the process of choosing a financial advisor. How can you find one you can trust? Asking them these four questions will help you settle on the best advisor for you and your family.
First, research the credentials of any financial advisor you’re considering. “Financial advisor” is a broad term for anyone who provides financial advice in return for compensation, and some are considerably more qualified than others. Look for a Certified Financial Planner (CFP) when you’re choosing a financial advisor. This designation indicates that an advisor has completed exams in areas like financial planning, taxes, insurance, estate planning and retirement — and is an expert in the field.
In addition, certain licenses can indicate what services or products a financial planner can provide. The most common licenses to look for include:
Financial advisors are typically paid in two ways:
Ask potential advisors what they charge for their services. There may be an initial planning fee, for example. Cost shouldn’t be your only factor in choosing a financial advisor, but it’s an important one to consider.
Some financial advisors have a specialty. If you have a specific interest beyond making money over time, such as charitable giving, choosing a financial advisor with that niche experience can be beneficial.
In addition, it’s important that the financial advisor offer the right personal touch to match your needs, which will likely be very different if you’re a recent graduate versus just a few years from retirement. You want a financial advisor who understands your goals and will help you achieve them.
Can you see yourself working with this person and vice versa? How much contact do you want with your financial advisor? Will you be working one-on-one or with a team? Any of these details can make or break a working relationship, so determine what you need before choosing a financial advisor. He or she will be helping you manage your money. Working with a financial advisor requires trust, personal chemistry and clear expectations.
Choosing a financial advisor is a big task, even when you’re equipped with the right questions. Our Farm Bureau financial advisors are standing by, ready to help you meet your goals.