Tips to Hire a Financial Advisor

If you do not have enough experience in planning your financial future or you are unsure how to achieve financial independence due to too much debt, paucity of savings and insufficient income, a financial advisor could be the right thing to do.

A financial advisor is someone who provides financial services to a person, business or governmental agency.  A financial advisor can give advice on investments, savings accounts, insurance and mortgages.

Although there are a number of professional certified financial advisors, you must research before you decide who to hire.  There was a study that released about a year ago that highlighted that there were many people who offered financial advice, but who were not involved in the business.

Here are steps to take to find your perfect match.

Advisor’s Education & Experience

When you search for the right financial advisor, you will most likely come across a list of the person’s qualifications (I.E. Certified Financial Planner), education, professional experience and what they offer to clients.  This is crucial to understanding what you will expect when you receive monetary advice.


How much are you willing to spend for financial advice?  What is your budget?  Financial advisors charge either an upfront fee or they earn a percentage of your assets that are under management.  Some even work on commission.  Always ask questions, especially when it comes to how much you’re paying them.

Past Success

Of course, when you hire a financial advisor, you don’t want someone who encouraged individuals to buy dotcom stocks in the last 1990s or a house during the housing crisis in 2008.  A financial advisor’s track record is important to establishing credibility.  Maybe you can ask for a list of references to see if the advisor helped a family pay off their debt.


Finance may seem complicated, but after a little research you can become conversant in the field.  Regardless, it would be ideal to find a financial advisor who will use less complex jargon when having a discussion and explaining everything to you.  Although you want someone to be simple, you don’t want a novice advisor either.


During the process, always get things in writing.  Just because they are professional that doesn’t mean they will always be honest with you.  If the person is trustworthy, reliable and experienced, they will be the first to provide you with any applicable written documents before you ask.  Better to be safe than sorry.