NewsWorthy, Entrust’s monthly video intended to help you make good financial choices, focuses today on: What do you need to consider when hiring a financial advisor?
To get your thinking started, consider whether you want to work with an advisor who focuses on investment products and pretty much stops there, or whether you prefer to work with an advisor who partners with you to help you make good financial decisions in all aspects of your life. You can usually tell the advisor’s focus before the first meeting, based upon the documents you are asked to bring with you.
You may be asked to bring only investment statements. On the other hand, if you are asked to bring all documents relating to your financial life (investment statements, tax returns, legal docs, insurance policies, and so forth), that is a sign that the advisor’s approach is to get a good understanding of your financial concerns that go beyond investing, too.
Another key consideration is communication. For instance, when you first meet with the advisor, how do you feel? Does it seem that the meeting is primarily designed to tell you about their firm and their products? Or do you feel like the first meeting is structured for the advisor to listen to you, to better understand you–your style of living, values, goals and needs? You should walk away from the meeting feeling like the advisor truly understands you, and is genuinely concerned about all aspects of your financial well being. In other words, the advisor has a strong commitment to partnering with you using a holistic approach.