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Here Is How You Choose A Financial Advisor

Adhil Shetty
Photo: Helloquence/Unsplash

Q. I am looking for a certified financial advisor. What crucial points/aspects should I consider before choosing one for myself? Suresh Yadav

A. A good financial advisor can guide you through to your financial goals by utilising the available resources, while a bad advisor can waste your time and money both. So, how do you choose? If you are looking for a good financial advisor, then the following points may be of help:

Data privacy and Safety: You must check and ensure that the advisor is capable and proficient in keeping your data and details safe.

Avoid too-good-to-be-true offers: Avoid those who claim unrealistic investment return, follows unethical ways or suggests illegal financial tips.

Check the qualification of the advisor: CFA, CFP, RIA and a qualification in MBA-Finance should be the basic criteria that you should look for.

Check the experience: Experience matters the most. Greater experience means more knowledge in handling critical situations.

Check past record: Ask the advisor to provide the credentials so that you can verify the past records. You can also call some of the clients of the advisor to verify the pros and cons of the services provided by him/her.

Fees and service range: Check the fees and the range of the service that he/she would provide. You may need service related to investments, loans, tax saving, goal setting and so on. Usually, it’s better to start with fees on the basis of per visit. If you are satisfied with the service of the advisor, then you may request for an annual rate contract.

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