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Decision Time: How to Pick the Right Financial Advisor

July 13, 2018

Choosing a wealth manager who you can trust with your financial future is one of life’s most important decisions. That’s a strong statement, but a good financial advisor can help grow your wealth just a few percentage points faster than you otherwise would.  Compounding that year-over-year will result in substantially more wealth accumulation.

how to pick the right financial advisor

The importance of growing your wealth aside, the intangibles of having a trusted advisor can’t be discounted. A wise and trusted advisor can help you feel comfortable about your financial position. The right advisor can give you confidence that you’re not missing opportunities to improve, keep you in control of your complex situation and much more.

How do I Choose Between Advisors?

After reviewing multiple options and identifying a few final contenders, you are ready make a decision. Our Guide to Deciding Between Wealth Managers can help. The guide focuses on key criteria that determine a successful relationship with a wealth manager. Using it, you can rank your finalists and pick the right advisor for you.

Here are a few additional tips to help you identify the best choice:

Three Tips for Choosing the Best Advisor

1)    Be mindful of “like” versus “respect.” At the end of the day, would you rather have an advisor who is like a friend but doesn’t provide much helpful advice, or a professional relationship with an advisor you respect who gives good advice? We sometimes come across folks who gush about their advisor but, when the financial results are reviewed, the advice has clearly been mediocre. Be mindful of the difference between “like” and “respect” when deciding between advisors.

2)    Think long-term. You may think you don’t need a long-term advisor relationship because you want specific, project-based advice. People sometimes settle for an advisor with shortcomings because they rationalize that the relationship is temporary. In reality, however, short-term projects occur more frequently than people realize. The need for advice may be infrequent but may also recur. It’s best to identify the advisor who is right for you. That way, when periodic needs arise, you have a go-to advisor you respect and in whom you have confidence.

3)    Consider your partner’s comfort level. Spouses/partners play different roles in a household. If you handle the personal finances, how would your spouse/partner fare if you were no longer around? If you are concerned, that should be a larger factor in your decision. Consider asking your partner, “If I was no longer here, which of the advisors we are considering would you feel most comfortable asking for assistance?”   

Download: Guide to Deciding Between Wealth Managers

Filed Under: Building Wealth

Written by PartnersInWealth

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