Hiring a Financial Advisor? Avoid These Common Mistakes

Many seniors consider hiring a financial advisor in order to help them with their money for retirement. If you’ve been considering hiring a financial advisor, there are some things you should know. Today, we’re going over how you can avoid making the most common mistakes people make when hiring a financial advisor.

Avoiding Common Financial Advisor Mistakes

Check References

Any advisor worth their salt will be able to provide references for their reputation and profession. These references are a great resource: call them and ask about the advisor in question. This way, you know the person is qualified and has gotten real results for actual clients. Contacting references ensures the person is honest, too, as their references can vouch for them.

Don’t Go with the First Advisor You Meet

A lot of people make the mistake of just hiring the first advisor they meet with. Don’t do this! Interview a few different people from various recommendations. Don’t just go with the person closest to home or the highest up in the online search. Make sure you know you’ve got the right person for the job.

Financial Approach

Make sure that you’re hiring an advisor with a complementary financial approach to you. If you’re trying to save up for retirement, maybe avoid an advisor with an aggressive strategy for your money. Instead, opt to go with a more conservative, tried-and-true advisor who will invest your money in sure-thing funds.

Don’t Trust Brands

Do your research on any advisor, even ones with respected brands backing them up. Make sure they have the right credentials, the right references and a good track record. Make sure you understand how the advisor gets paid: do they get a commission from mutual funds? Do they take a fee, or do they charge a percentage of your assets?

In short, make sure you do your research on any financial advisor before you hire them. This is a person you will be trusting your savings and assets to, so it’s important they’re honest, reputable and up to the task.

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