One of the most important – and most often overlooked – aspects of your financial future and your portfolio is not how well your investments do in terms of return, but your satisfaction with your financial advisor. Most people tend to think that as long as they’re making money with their money, they don’t care. However, a financial advisor with whom you disagree or dislike can make a significant difference in your outlook as far as your investments go. Here are five things you must look for when choosing a financial advisor.
Fees
Hidden fees can impact on the way you feel about your financial advisors. If your advisor does not advertise fees and you do not ask, you will always end up unpleasantly surprised. You want to deal with a financial advisor that’s up front about the cost of his or her services; ask for it in writing if it’s not offered to you up front. It will save a lot of headache.
Experience
It’s not to say that a freshly hired college grad is not going to do a wonderful job managing your portfolio, but chances are good that you’ll be more satisfied with an advisor with a little experience. You want someone who has been here and done that and survived different aspects of the financial market. Ask questions and look for certifications and accolades.
Niche
Not all financial advisors are created equally. What you want is an advisor that has a specific niche; preferably the one you’re interested in, at that. For example, if you’re around retirement age, you’re going to want to choose someone who is around the same age as you, because they will probably specialize in your niche. Just ask if you’re uncertain.
A Team You Like
Most investors will speak with you once or twice per year, but their team will speak with you regularly. It’s important that you get along with the team who will be taking care of you just as easily as you get along with the advisor you choose. If you don’t like the entire team, you could be in trouble.
An Advisor that Cares
This one is very important. You need an advisor that asks as many questions of you as you of him or her. Your money is your money, and your advisor should be interested in what you want and how you envision your financial future and outlays. This means he or she will want to know about you. You’re not just a number to a good financial advisor.
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