Hiring a financial advisor can be a great way to navigate the complicated financial scene and safeguard your future. But not all advisors are created equal. Here are 5 qualities to look for when you are deciding which financial advisor is right for you:
1. Personality. Your financial advisor’s personality may not seem like that big of a deal compared to his or her knowledge in the field, but it’s important to find an advisor who understands and respects your point of view. Overlooking this important detail can cause tension and possibly lead to clashes down the road. Look for an advisor you think will be easy to work with to make the process of achieving your financial goals as smooth as possible.
2. Expertise. While it may seem like most financial advisors have similar backgrounds and experience, it’s still important to make sure that the person you hire is qualified to do the job. Not only that, but hiring an advisor that specializes in a particular area you want to focus on, like retirement planning, will help you get up and running even faster.
3. Approach. It’s important to consider the approach your advisor is going to take when it comes to managing your finances. Does he or she favor high- or low-risk stocks? Is he or she conservative or less traditional when it comes to savings? These are all important questions to ask to ensure that you and your financial advisor see eye to eye.
4. Attentiveness. Does your financial advisor listen to you? Or does he or she only look at your bank statements and not at your lifestyle? The key to a successful financial plan is to create something that you can live with. And financial advisors won’t know that unless they ask.
5. Fee structure. As with all purchasing decisions, it’s important to consider whether or not you can afford the product or service you want to buy. The same thing applies to hiring a financial advisor. Also, know how potential advisors will be compensated. Will they work on a fee-based system or will they work on commission? Do your research before making any decisions. Hiring a financial advisor is an important and often personal decision. Make sure you meet with potential advisors face to face to discuss your goals and ensure that you will have a working relationship that will serve you in the long run.