How to Choose the Right Financial Advisor
If you were planning to remodel your kitchen, you’d never accept the first estimate you received. Instead, you’d talk with several contractors and learn as much about them as possible before making a commitment. When choosing a financial advisor, taking the time to thoroughly research your options before moving forward is even more vital.
Honest conversations with potential financial advisors, during which you run through your list of questions, is the best way to find the right fit — and to avoid common mistakes when selecting an advisor. It’s why we built Wealthramp to provide up to three personalized matches you can schedule a complimentary consultation with.
These conversations are a great learning experience, and an essential step toward building your financial future. You’ll learn about the advisor’s experience, approach, investment philosophy, and much more. And, you’ll gain a deeper understanding of your own needs and priorities.
To help you achieve the insights you need to choose the right advisor for you and your family, we’re sharing this step-by-step list of the critical questions you’ll want to ask anyone planning your financial future.
Why working with a financial advisor matters
Before we dive into the interview questions, make sure you understand the full impact a financial advisor will have. When you choose the best advisor for your needs, they can:
- Help you develop a comprehensive view of your finances by looking at your liquid and non-liquid assets, your overall needs and long-term goals, rather than just your investments
- Fill in gaps and blind spots in your financial knowledge and perspectives
- Help you align differences in investment approaches with your spouse or other family members
- Provide a proactive approach to maximizing tax savings
- Find and work closely with the right legal, tax, and other professional resources you need to address complex financial situations, such as divorce or estate planning
- Provide clarity and peace of mind, so you can focus on other aspects of your life
Take our brief survey, receive your advisor matches, and schedule your complimentary consultations today
Step 1: Interviewing financial advisors
Ask the right questions to find the best fit
In this short video, Wealthramp founder Pam Krueger recommends you ask two important questions when interviewing a potential financial advisor
- Who are your typical clients, and what do you do for them on a regular basis?
- What are your fees based on? How do your typical clients pay you?
Those are the top questions, but you’ll want to dive much deeper. If you’re comfortable with the answers you receive, you may continue with more questions that apply to your unique situation and needs.
Step 2: Evaluating a financial advisor
Is this a match? Or should I keep looking?
After your conversation, take a moment to reflect on the discussion to determine your next steps. Here are a few questions to ask yourself:
- Did they take the time to ask questions about my needs, family, financial situation, and goals before talking about money?
- Did they listen to my answers?
- Did they answer all of my questions directly and completely?
- Did I learn anything about their background that might make them particularly well suited – or poorly suited – to my needs?
- Do they have expertise in the areas that are important to me?
- Did they provide complete and transparent information about their fees?
Now that you have a solid understanding of a potential financial advisor’s approach and experience, you can feel more confident making the right decision for you and your family.