Experienced attorneys, personal physicians, chartered accountants, and trusted realtors—most people will thoroughly research their options when hiring these professionals to find the perfect fit.
But why stop there? Choosing the right financial advisor, one who is there to serve as a steward for the wealth you’ve worked so hard to build, may have the greatest impact of them all.
Not all advisors or their services are the same. While the process of finding that ideal match is complex, this guide is designed to help you ask the right questions, narrow down your search, and decide with confidence.
Different Advisors, Different Standards
The title “financial advisor” is an ambiguous, umbrella term that several professions have adopted.
Their service offerings, motivations, and payment models couldn’t be more different and will play a major role in the type and quality of advice you receive.
Insurance Salesperson
- Licensed to sell insurance products, including high-commission annuities.
- Held to a “suitability standard,” which can lead to conflicts of interest.
Bank Sales Representative
- Tasked with reaching a sales quota of their employer’s high-commission products.
- Held to a “suitability standard” and limited to selling their own products exclusively.
Stockbroker
- Buys and sells securities that incur commissions for each transaction.
- Held to a “suitability standard” and financially incentivized to rack up commissions.
RIA/Fiduciary Financial Advisor
- Provides a broad range of services and is legally bound to always act in their clients’ best interests, otherwise known as the “fiduciary standard.”
- Typically charge a flat percentage management fee, which means their financial success is directly correlated to that of their clients.
Different Financial Needs, Different Services
Certified financial advisors should offer more than just recommending investments and managing portfolios.
Let’s look at each part of your finances—taxes, retirement, savings, investments, business ventures, and more—as a page in your story. Individually, they’re challenging to put in order, and paper isn’t exactly known for its durability.
But when you combine them all into one book, everything changes. There’s a reason why tearing a phone book in half is considered a feat of strength.
This comprehensive, integrated concept is precisely what you can expect from a fiduciary advisor managing your wealth. It blends the advantages of a financial planner’s handcrafted roadmap with the portfolio management typically found in investment counsel firms—the result is comprehensive financial advice that sees the big picture without missing any of the details.
When each aspect of your finances works in unison, they can have compounding benefits—if the person guiding your investments is alsoaware of your assets, liabilities, and overall tax situation, you can all but guarantee that your portfolio will generate much more tax-efficient returns. Earning money is important, but keeping it is even better.
Proactive, Personalized Planning
Admittedly, being a top-of-class financial advisor requires decades of experience, advanced tools, strong principles, keen insights, people skills, ample time, and a proven investment philosophy.
Why? Without these components, crafting a truly customized financial plan is nearly impossible. In fact, some advisors may provide each of their clients with the same templated plans that can’t truly account for their unique circumstances.
No two clients are the same, so no two financial plans should be identical either.
Proactivity is an equally valuable benefit when it comes to wealth management. By taking your short- and long-term goals into account, your advisor can develop a plan that’s ready to adapt to your evolving needs. The best ones anticipate changes and pivot as needed, avoiding problems before they even arise and seizing opportunities along the way.
Be a Priority, Not a Distraction
Considering that you’re putting your full faith, finances, and future into their hands, your advisor should spend the majority of their time thinking about how they can improve your life. They shouldn’t be a marketer, a salesperson, or an administrator—they should be an advisor, a steward, and a source of reassurance.
Earlier, we said top-of-class advisors needed ample time—it’s the one asset we can’t buy more of.
Advisors burdened by middle- and back-office responsibilities, or those who are trying to grow and become spread too thin, have less time to spend enriching their clients’ lives.
We designed our business with these objectives in mind. Dedicated support teams, ranging from compliance to operations, enable us to focus as full-time advisors, transforming partnerships into enduring relationships with our clients.
By Law, By Choice
Our legal and ethical responsibility as a Registered Investment Advisor (RIA) is to uphold the fiduciary duty to consistently put our clients’ interests ahead of our own.
We’re also personally bound to it as well, guided by our values and principles. In good faith, we could never recommend anything that wasn’t the best possible option for you. We became fiduciaries because we truly believe it should be the norm, not the exception.
Conclusion
The pillars of any successful partnership are trust, shared values, transparency, and mutual success. When choosing a financial advisor to help you build the life you’ve dreamed of—the life you deserve—this is even more true.
If you’re ever uncertain about your advisor’s motivations, it may be time to consider if they’re adding value to you or if you’re adding value to them via commissions or conflicts of interest.
Alternatively, if you don’t already have a professional to help you reach your financial goals, we cannot stress enough how beneficial a primarily fee-based fiduciary advisor can be. They are exclusively rewarded based on your success, aligning both of your interests—the better you and your portfolio do, the better your advisor does too.
If you’re looking for a partner in your corner to make the most of your financial situation, we’re here to do exactly that.
FAQ ACCORDION STYLE DROP DOWN (SEO reasons)
10 Questions to Ask Financial Advisors
1. What are your financial qualifications and credentials?
Look for relevant credentials like certified financial planner (CFP®), certified financial analyst (CFA®), and other impressive indicators of expertise. Ensure the advisor stays updated with current financial planning developments through continuing education. Also inquire about their work experience and how it relates to their current practice.
2. What services do you offer?
Understand the scope of products, services, and advice an advisor can provide. Licenses and background determine the services they can offer. Ensure they align with your specific financial needs—some might specialize in business succession planning, whereas others are more talented with estate planning or helping you build a legacy.
3. Will you have a fiduciary duty to me?
Confirm, in writing, that the advisor will act as a fiduciary, putting your interests first. Fiduciaries must disclose any conflicts of interest. This commitment is crucial, as not all financial professionals have this obligation.
4. What is your approach to financial planning?
Determine if the advisor will create a comprehensive financial plan. Clarify if they’ll implement the plan or work with other professionals. Understand who will execute the recommendations.
5. What type of clients do you typically work with?
Ensure the advisor’s typical client aligns with your asset range and financial situation. If you have unique circumstances, mention them to make sure that they are a good fit. Some advisors specialize in specific areas, like small business owners or ultra-high-net-worth clients.
6. Will you be the only advisor working with me?
Find out who will be working with you directly. If it is a team, ask about the roles and qualifications of each member. Also inquire whether the advisor collaborates with external professionals and request their information.
7. How will I pay for your services?
Understand the different payment options, like a percentage of managed assets, hourly rates, fixed fees, retainers, or commissions. Your advisor should clearly explain their fee structure and how you will be charged for their services.
8. How much do you typically charge?
Ask for an estimate of possible charges. The cost will depend on your needs, the services you utilize, and potentially any products used to implement your plan. Always be mindful of additional (or hidden) fees—you should expect full transparency.
9. Do others stand to gain from the financial advice you give me?
Inquire about potential conflicts of interest, such as relationships with companies whose products they recommend. You have the right to accept the conflict or seek a different advisor. They should disclose conflicts of interest and get your consent.
10. Have you ever been publicly disciplined for any unlawful or unethical actions in your career?
Check for any public disciplinary actions by regulatory bodies. Use resources like FINRA’s BrokerCheck, the SEC’s Investment Adviser Public Disclosure database, and state regulator websites.
DISCLAIMER
Promus Advisors, a SEC registered investment adviser, is an affiliate of Bellwether Investment Management, Inc. (“Bellwether”). Promus Advisors provides feebased asset management and advisory services. Bellwether and Promus Advisors have entered into arrangements in which Bellwether may refer clients with financial advisory needs to Promus Advisors. Please note that SEC registration does not constitute an endorsement of the firm by the Securities and Exchange Commission, nor does it indicate that the adviser has attained a particular level of skill. Promus Advisors and its investment adviser representatives are in compliance with the current filing requirements imposed upon SEC registered investment advisers by those states in which Promus Advisors maintains clients. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable, equal any corresponding performance level(s), or be suitable for any specific client’s portfolio. Promus Advisors does not guarantee that any benchmark or indices used by Bellwether will match a given portfolio. Furthermore, asset allocation and/or diversification does not necessarily improve an investor’s performance or eliminate the risk of investment loss.
