Choosing a financial advisor is an extremely important decision. It’s a relationship built upon mutual respect and trust. The role of the financial advisor is to increase your net worth and help you reach your long-term financial goals.

What is the definition of a financial advisor?
Generally, a financial advisor is a trained professional specializing in helping manage your personal finances so you can meet your defined long-term financial goals.

Why hire a financial advisor?
When you have defined your financial goals and are ready to seriously work to make these goals reality, it’s probably time for the assistance of a financial advisor. They are trained to advise you on how to make your financial goals a reality. They can advise you on saving for your children’s education, retirement planning and how to keep your financial house in order. Before you even meet with an advisor, you should have a clear picture of your financial goals and what expectations you may have regarding the role of an advisor.

How do I choose a financial advisor?
Your advisor should be a compatible fit with both your personality and financial needs. You’ll want to interview several financial professionals to make sure you find the right fit. You must have complete confidence in an advisor, as they will be managing your finances.

Are there questions I should ask my potential financial advisor?
Remember, there are no dumb questions! Here are some basic ones:

What are your qualifications and training?

What’s your experience and are you licensed?

What financial services do you offer?

What’s your approach to financial planning?

How do I pay for your services and how much do you charge?

Have you ever been sanctioned, disciplined or reprimanded for unlawful or unethical professional actions?

How often do you communicate with clients?

Will I get everything you promise to do for me in writing?

Anything else I can do to find the right advisor?
Ask friends, family and business associates if they’d recommend their financial advisor? Word of mouth can be a great starting point. Even if you act on a recommendation, still ask questions during that initial meeting with the advisor!

What does CFP mean after a financial planner’s name?
This is a registered trademark that stands for Certified Financial Planner. It is a certification awarded by the Certified Financial Planner Board of Standards Inc. to those planners who meet certain standards of education, experience and ethics requirements. And, an examination is required.

Are there resources I can use to help my decision?
The Financial Planning Association
(800) 322-4237
www.fpanet.org

National Association of Personal Financial Advisors
(800) 366-2732
www.napfa.org


The research and interviewing process is one of the most important aspects of choosing a financial advisor. Take this process very seriously. Go to the initial meeting prepared with questions. You want your relationship with your advisor to be a profitable and long-term one. Do all your homework ahead of time. And remember, it’s your money!

**Please check with a financial professional before making financial decisions. This article is not intended as investment or financial planning advice.**


I recommend David Bach’s Smart Women Finish Rich because there is an entire section on choosing and working with a financial advisor. I've included a link to Amazon.com: Smart Women Finish Rich

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