6 Factors to Consider Before Hiring a Financial Adviser

So, you’re looking to hire a financial adviser? Well, that’s a smart move. The right financial adviser can work wonders on your financial situation. However, just as in any other field, not every financial adviser is the right one for you. This isn’t necessarily because they’re bad at their job either; there are many factors that can get in the way of a productive professional relationship. So, before you dive in and hire a financial adviser, ask yourself a few questions:

1. How do they get paid? A financial adviser may have their own financial incentives to have their clients make certain investments. If they are pushing a certain product for their gain, it’s best to stay clear of them. You’re paying for their services, and your best interests should always be in their mind while they’re working.
2. How many clients do they have? If they are struggling to get clients, that may be a sign of a lack of experience. If they have too many, then they might not be delegating their time as effectively as they should. A good financial adviser will have time for you, while also providing a valuable service to a reasonable number of clients.
3. How’s their own money invested? “Practice what you preach,” as the saying goes. This timeless saying should be applied to your financial adviser too. If you were an expert in handling money, wouldn’t it make sense that you put those skills to use on your own finances?
4. What’s their specialty? Your financial adviser should be proficient in whatever service they offer.
5. How do your communication styles match up? Perhaps your prospective financial adviser is a financial genius. Perhaps they just happen to have the skills to help you reach your goals, and you’re sure of that. Even if this is the case, communication is key, and a financial adviser who you just can’t stand talking to won’t be too helpful or encouraging.
6. Will they take the time to explain things for you? They should be able to help you understand what they are doing. If they are unwilling to do so, that will eventually cause you unneeded stress and confusion.