How to Choose a Financial Advisor

How to Choose a Financial Advisor? What to Look for Before Choosing a Financial Advisor?

It is rather a misconception that financial advisors are hard to find because they are not. They are, however, hard to choose from. And that is because; there are always a lot of options for you to choose from.

There are advisory firms and online services where you can sign yourselves up and write down your requirements for a financial advisor. The website will then hook you up, or give you a list of financial advisors and planners that go with your necessities.

Is Financial Advising for You?

If you are someone who is living from paycheck to paycheck and has strict finances, then going for a financial advisor is not the option for you. This is because it costs a good amount of money, something that cannot be afforded by all. You should go for hiring a financial advisor if you have a stable and steady income.

A Small Guide

As mentioned at the beginning of this article that choosing a financial advisor gets tricky sometimes, so having a sorted plan of your requirements helps you choose in a better way. To make a plan, there are some things that you should take a check on, a detailed description is given below.

What Service Do You Need?

Financial advisors provide their clients with an array of services, and the cost varies on that as well. It is a very important and deciding factor, so you should be clear about which service you require before going to hire an advisor.

To start with, there are retirement planning specialists who help you prepare for your retirement. Likewise, there are wealth planners and estate planners who give you advice on their respective sectors.

There are divorce financial analysts who help you take care of your finances before and after the divorce. Except for these few, there are many more, so you should have a thorough look and select the type of advisors that you require.

Which Type of Advisor

Depending on your situation and how deep or complex it is, there are three types of financial advisors that you can choose from. Firstly, comes the traditional financial advisors who are well known for supplying their clients with a broader range of assistance.

This happens because you develop a personal-professional relationship with them, and they take care of your finances at regular intervals, doing checks and taking necessary measures.

Hiring traditional advisors means you simultaneously have access to estate planners, retirement specialists, debt consolidations along restructuring specialists.

The accessibility does differ from advisors to advisors, so before hiring, the limitations have to be understood. But, in total, it is a package deal.

Robo advisors are automated pieces of advice. This is more like an easy and quick solution that will help you keep yourself on track with your finances.

It is the most affordable option, but the advice that Robo advisors give may not cover the bigger spectrum of your needs and problems.

The interaction is not at all personal. And for all of these reasons, it is suggested that if you are someone who is just starting on getting financial advice, and do not want to spend a good amount of money, only want to get the work done, you should go for Robo advisors.

Lastly, comes the hybrid advisors who are well known for providing you with plans that work perfectly for you but are not heavy on your wallet, and you can easily afford them.

These advisors are perfect for people who are not satisfied with Robo advisors but also cannot afford the traditional financial advisors.

What Factors Should Be There

Once you have selected the type of service you need and the type of advisor too, it is time for you to choose the advisor that will help you out. Similar to the other cases, you have to take care of a few factors before making the final verdict.

If you take care of these factors, then it will help you ensure that the financial advisor you choose stays with you for a good amount of time.


Most financial advisors have one or two sectors in which they are the absolute best. Ask the advisor which sectors are they, and then talk to him or her about them.

If those sectors are what you are looking for, then go for them. You should however keep in mind, that if the lack of expertise does not concern or involve your issues directly, then it should not be a deciding factor for you.

Experience and Cost

Experience is a huge factor here, because the more experience your advisor has, the better he knows how the world works. He or she is more aware of the tips and tricks, and is more comfortable and used to their job, resulting in you having a better and smoother experience.

That being said, an advisor with greater experience will cost more than the usual ones. Alongside, the expenditure will also depend on the track record of the advisor, and also on how transparent they are or have to be with their clients.

Qualifications and Trustworthiness

Before hiring a financial advisor for yourself, you should check his or her qualifications. While in the interview, ask for their licenses and other credentials. It is highly unlikely that financial advisors will lie, but is better to be safe as you are spending your money and trusting them with your finances.

If you face any detail that makes your advisor look sketchy, then do a double-check with the previous organization. Lastly, ask for referrals. This is very important so you should talk to his or her previous clients about the things you think are crucial for you to hire them. Ask about the negative features or reactions as well.

We hope that you know how to hire a financial advisor and what features you should look for while hiring one by now. If you want to know about startups of financial advising as well, then you should go check our next article too.

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