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What to Look for in a Financial Adviser

We all want to reach retirement age confident we have the means to live a comfortable and enjoyable life, and choosing a financial adviser is one of our most critical decisions. (opens in new tab) (opens in new tab) (opens in new tab) Newsletter sign up Newsletter (Image credit: Getty Images) By Tony Drake, CFP®, Investment Advisor Representative published 22 October 2022 Finding someone to take care of your money can be a stressful task. But you want to take your time to ensure you are selecting the right fit. What should you look for when choosing a financial adviser?

Get the Most from a Zoom Meeting with Your Financial Adviser Here are a few questions to keep in mind as you seek an adviser to continue planning for retirement.

Are they a comprehensive planner

When you first meet with a potential financial adviser, what advice are they offering you? Are they talking only about stocks and bonds? Or do they focus on other aspects of your finances like Social Security, taxes and estate planning?

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Profit and prosper with the best of Kiplinger's expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of Kiplinger's expert advice - straight to your e-mail. Sign up A comprehensive financial planner (opens in new tab) will help you develop a holistic plan that looks at all aspects of your finances and covers your short-term and long-term goals. Advisers who use a holistic approach will take the time to ask you questions about your financial goals, both now and in the future. This could include everything from legacy planning to charitable giving. You want an adviser who truly understands your hopes for retirement. A holistic plan looks to optimize all aspects of your finances and how they can work together toward those goals. This type of planning will bring you a lot more value and help you navigate complicated financial decisions.

Are they a fiduciary

A fiduciary (opens in new tab) is legally and ethically required to make the best decisions for their clients. They will always put your needs first. This may not be the case for many advisers out there. When choosing a financial adviser, you are looking for someone to help manage all of your finances. You want to be sure you can trust them to do that. A fiduciary cannot recommend anything that does not benefit you. If a recommendation could lead to a potential conflict of interest for your adviser, as a fiduciary, they have to tell you. This could be something as simple as an adviser profiting more from one investment over another. When they are a fiduciary, you know that the recommendations they are giving you come from a place of trust, good faith and legal and ethical duty.

Are they an independent adviser

An independent adviser is paid a flat fee to advise their clients, and they want to provide you more than a product. This is very different from advisers who work on commission. They make money based on their sales for a third party. Be wary of advisers who work on commission. Their recommendations may be based on sales and not the products or services that are best for you.

Some Financial Adviser Credentials Are Not Trustworthy Advisers who work for larger firms may be allowed to offer only their firm's specific products or services. Working with an independent adviser leaves you open to many more options for your money.

Are they a good personality fit for you

Your values and goals should align with your financial adviser's. When you leave an initial meeting, ask yourself if you got anything out of it. Your adviser should be able to make complicated financial subjects simple. You might meet someone who checks all of your strategic boxes, but if they aren't a good fit for your personality – it's OK to keep looking. This is an important decision, and you want to make the right one.

Enhance your financial future

A recent poll found that about 38% of Americans (opens in new tab) currently work with a financial adviser, and advisers are the most trusted place to get financial advice.

Making the Most of Your 401(k) by Using Your Own Adviser Planning your financial future is a process that takes years, and you don't want to make any mistakes. Make sure you are working with the right people who make the best decisions for you and your money. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC (opens in new tab) or with FINRA (opens in new tab). Explore More Building Wealth Tony Drake, CFP®, Investment Advisor RepresentativeFounder & CEO, Drake and AssociatesTony Drake is a CERTIFIED FINANCIAL PLANNER™and the founder and CEO of Drake & Associates (opens in new tab) in Waukesha, Wis. Tony is an Investment Adviser Representative and has helped clients prepare for retirement for more than a decade. He hosts The Retirement Ready Radio Show on WTMJ Radio each week and is featured regularly on TV stations in Milwaukee. Tony is passionate about building strong relationships with his clients so he can help them build a strong plan for their retirement. Latest 4 Ways You Can Take Advantage of a Down Market With markets down for the year, it may seem that all the news is bad. But now could be a good time to make some profitable moves. By Adam Grealish • Published 11 November 22 New, Used or Leased: Is Now the Time to Buy an Electric Vehicle? The Inflation Reduction Act created new tax breaks for electric vehicles. Here's a guide to which EVs count and the best time to buy. By Rivan V. Stinson • Published 11 November 22 You might also like 4 Ways You Can Take Advantage of a Down Market With markets down for the year, it may seem that all the news is bad. But now could be a good time to make some profitable moves. By Adam Grealish • Published 11 November 22 Finding Peace of Mind With Your Retirement Income Even in tough times, you can secure retirement income that lets you maintain your lifestyle, lasts a lifetime, adjusts for life events and leaves a legacy for the kids. By Jerry Golden, Investment Adviser Representative • Published 10 November 22 What to Do When an Unhappy Customer Threatens to Ruin Your Rep Some customers go too far when they feel they haven't been treated well, demanding unreasonable make-goods and even resorting to extortion. An attorney offers some advice. By H. Dennis Beaver, Esq. • Published 10 November 22 Rising Interest Rates Change the Math on Pensions for Some Would-Be Retirees Now is a good time to think about when and if to take a lump sum on your pension and what to do with it. Let's explore the pros and cons. By Michael Aloi, CFP® • Published 9 November 22 Counterattack: Tips for Thwarting a Will Contest From contentious relatives to scam artists, wills are not immune to the threat of a contest. If you have an inkling such a fight could be in your estate's future, here are some ways to limit the risk. By Linda Kotis, Esq. • Last updated 10 November 22 5 Steps to a Stronger Financial Plan It's impossible to be right all the time, but a strong plan and constantly assessing where you are can help you pivot when bad things inevitably happen. By Eric Roberge, Certified Financial Planner (CFP) and Investment Adviser • Published 8 November 22 Safe Harbor 401(k)s Can Help Small-Business Owners Keep Happy Employees Immediate vesting and contributions by the employer regardless of the employee's participation pump up workers. Employers get lower costs and tax benefits. By Mike Piershale, ChFC • Published 8 November 22 5 Survival Tips for the Bear Market It's been a painful year for investors, but focusing on the long term and implementing constructive actions can help weather the turbulence. By Daniel Kern, CFA®, CFP® • Last updated 8 November 22 View More ▸ kiplinger About Us (opens in new tab) Terms and Conditions (opens in new tab) Privacy Policy (opens in new tab) Cookie Policy (opens in new tab) Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site.
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