Choosing a financial advisor is only half the battle in ensuring that your investments are properly looked after. Finding a good one is also important.
Following are some tips to help ensure that your experience is a good one:
First, it’s a good idea to set up some ground rules. For example, you may want to ask how often you can expect to hear from your financial advisor. You’ll also want to know whether you’ll hear directly from your advisor or from a staff member. Not knowing this can lead to frustration.
Second, you’ll want to keep your financial advisor informed of your fiscal situation and goals. You likely did that when you first met with the advisor, but finances and goals can change. You may have received an inheritance, made a large purchase such as a car or a house, started caring for an elderly relative, decided to send your children to a more expensive college, or opted to retire earlier than you had originally planned. These are all situations you would want to mention to your financial advisor, as they could necessitate a change in your plan.
Third, keep in mind that your financial advisor may be available to help you with concerns other than those that were part of your original consultations. Perhaps you originally began working with a financial advisor on a single issue, such as portfolio management or retirement planning. It’s likely, however, that your financial advisor can help you with many more issues, from wealth transfer to taxation. Don’t hesitate to ask.