Choosing a financial advisor is a major life decision that can determine your financial trajectory for years to come.
Being aware of these seven common blunders when choosing an advisor can help you find peace of mind and avoid years of stress.
All of the financial advisors on SmartAsset’s matching platform are registered fiduciaries. If your advisor is not a fiduciary and constantly pushes investment products on you, use this no-cost tool to find an advisor who has your best interest in mind.
While it’s tempting to hire the advisor closest to home or the first advisor in the yellow pages, this decision requires more time. Take the time to interview at least a few advisors before picking the best match for you.
Some might be best for young professionals starting a family. Be sure to understand an advisor’s strengths and weaknesses before signing the dotted line.
Some advisors may suggest aggressive investments, while others are more conservative. If you prefer to go all in on stocks, an advisor that prefers bonds and index funds is not a great match for your style.
Ask your advisor about their licenses, tests and credentials. Financial advisor tests include the Series 7, Series 66 and Series 65. Some advisors go a step further and become a Certified Financial Planner, or CFP.