When you are planning for your financial future, it may be helpful to hire an investment adviser. Advisers can use their experience and knowledge of both the current market and future projections to help you make wise decisions about how to make your money work for you. There are a lot of choices out there, though, and all of them may not be right for you. Rather than choosing someone at random or just going with the person you seem to get along with the best, it’s a good idea to put your top choices through a multilevel vetting process.
The first thing you want to do is gather a list of advisers. Start by asking friends and colleagues. Ask what advisers they use and why they chose them. It also makes sense to search the internet for reputable advisers and add a few to your list from there. It is crucial to seek out independent opinions of investment advisers from the very beginning.
Once you have quite a few possibilities in mind, look at each adviser’s website. Make note of the things that you like and the things that you dislike. See if anything sets each adviser apart from the others. When you have looked at the information each has to offer, you can narrow your search to a handful of candidates.
Compare Front Runners
Once you have chosen four or five candidates from the recommendations you receive, create a spreadsheet so you can start your comparison process. There are several factors you should look at when you are evaluating each potential adviser:
- Credentials – Many advisers list certifications and licenses on their websites. You don’t have to take their word for it, though. Part of your search process should involve checking to make sure the information they give is true.
- Experience – Even if an investment adviser has a lot of training, the real market knowledge comes from their experience in the field. Compare the length and breadth of each adviser’s experience to the others.
- Compensation – Some advisers are compensated by certain entities for promoting what they offer to clients. Fee-only advisers, on the other hand, only receive compensation from the clients themselves. They act as fiduciaries, which means they have a legal obligation to only give you advice that is in your best interest.
- Services – Decide what you want your adviser to do for you. Some focus on financial planning services while others may be able to provide acute insight and help you evaluate an existing portfolio. You want an adviser whose expertise matches your needs.
- Complaints – Be sure to check and see if there have been any complaints filed against your candidates. Even if you don’t consider a particular complaint to be a deal breaker, it is still good to know it’s out there.
Interview Potential Choices
Once you compare all the factors that are important to you, it is time to meet your potential investors in person. You may decide you want to interview all of your candidates, or you may notice that two or three stand out from the rest. The purpose of interviewing your top choices is to see how well each one relates to you and listens to your concerns.
You should have a list of questions prepared before you go to the interview. Some possible questions may include:
- What services do you offer?
- What kind of clients do you prefer to work with?
- Who will handle the account?
- What experience do you have?
After you filter through recommendations, compare the strongest candidates and interview your top choices, you are ready to make a decision. By picking the adviser who not only has a great track record but also hones in on what you need, you may be better equipped to plan your financial future with confidence.