When looking for a financial advisor, one of the most important things is trust. This is a person who will be advising you on your money and also have access to all your financial information, so finding someone you feel comfortable with is crucial.

Start by talking to friends, family, and colleagues about their experiences and see if they have any recommendations. You can also check for reviews and complaints on BBB.org.

There are many factors to consider when choosing a financial advisor.

Are you looking for general help to manage your finances more effectively? Or do you have certain goals – like saving for retirement or a child’s college fund – that you want to work toward? Are you interested in venturing into the stock market and starting to invest?

These are all reasons you might want to find a financial advisor to help guide you.

Once you know what you need help with, it’s time to find the right person.

The first step is to decide what type of advisor you want – a fee-only advisor or a commission-based advisor.

Forbes.com explains that fee-only financial advisors charge you a fee for their services, while commission-based advisors make their money through sales commissions from third parties.

Fee-only advisors may charge you an hourly rate, a flat rate, or a percentage of the assets they manage. This helps them avoid conflicts of interest.

Financial advisors who earn commissions may cost you less (or nothing) upfront, but keep in mind that they make their money by selling you third-party products. This does not mean you won’t benefit from the products, but you should keep that in mind as a factor.

 

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