Tips to Consider When Selecting a Financial Advisor

Header with Jason Freese

posted January 6, 2022 in Blogs

Planning ahead for you and your family can often be a daunting, stressful task, which is why so many people lean on a financial advisor to take the reins and provide strategic next steps. Finding the right advisor can take some weight off your shoulders, but it is important to consider a few things before giving someone access to your personal information.

Below are a few tips for choosing the right financial advisor:

Advisor works as true fiduciary

A good rule of thumb is that your selected advisor is working for you as your advocate. He or she should always keep your interests in mind ahead of personal interests. While advisors can be great advocates, be sure to consider their credentials as well as research their financial background. A fiduciary is bound legally and ethically to do what is best for you.

“You’ve built a nest egg, now it’s time to trust the care of all your hard work to someone who cares about it as much as you do.”

Understand how the advisor gets paid

Advisors offer a wide variety of fee structures, which helps make their services accessible to clients of all levels of financial means. It is important to note the difference between commission-only and fee-only advisors. Commission-based advisors receive a portion of what you invest or purchase as a payment. Fee-only advisors may charge fees based on the total amount of assets they manage for you, or they may charge through a retainer agreement or via a subscription model. When in doubt, always ask questions about any fees in advance. All the information should be transparent and easy to understand.

Ensure that the investing approach makes sense to you

As I often say, things do not have to be complex to be effective. The same holds true for your financial plan. An advisor will continue to work with you to ensure your options are clearly understood and that you select an investing approach the meets your long-term financial goals.

Find an advisor who focuses on relationships

The most important thing is to find an advisor that you are completely comfortable with. In this long-term relationship, your advisor listens to all your goals, fears and concerns. A good advisor won’t just lay the groundwork for your successful financial future but will also keep you motivated along the way.

Because of the ambiguity in the industry, you must exercise caution to make sure you get the right financial advisor who meets your fiduciary and financial needs. When you find the right financial advisor for you, they can help you achieve your financial goals and financially protect your loved ones and their futures.

About the Author

Jason Freese is a Trust Officer with First Community Trust specializing in estate, trust and retirement planning and serves members of Greater Iowa Credit Union. With over 26 years in the financial industry, he is passionate in helping members reach their current and future financial goals. Contact Jason to learn more about GICU’s Wealth Management Services.