How To Choose A Financial Advisor

Do you want to take control of your financial future? Do you want to make the right decisions with your money? A good financial advisor is trained on a range of financial matters and this can help you manage, build and protect your wealth. Although there are hundreds of financial advisors available, it is important that you choose one that meets your specific needs and requirements.

You need to choose an advisor or planner that you can trust your money with. If you are not confident about them, it is advisable to avoid them even if they offer you the best deal. As the advisor you may be choosing may influence and control your investment decisions, you should not rush through the process of selecting a financial advisor.

Tips on How to Choose a Financial Advisor

Understand Your Financial Needs And Goals

Choose someone who may be able to understand your financial needs and goals. If you want investment advice, it is best to choose a planner registered with the securities regulator and similarly of you want insurance advice you can choose a planner who has an insurance license.

Certified Financial Advisor

It is always advisable to choose a financial advisor who is certified. All advisors need to be registered with FSA (Financial Services Authority) and you can check on the website to check if they are registered. Apart from this, it is best to ascertain if they are members of a professional body. You can be assured of the credibility of the advisor if they are certified. This ensures that they adhere to the code of ethics.


Before you choose an advisor, it is best to gain knowledge about their qualifications. The most basic level of qualification that you need to look for is a certificate in financial planning or certificate for financial advisors. These are the minimum qualifications required. A reputed advisor has at least three years of experience and has signed a code of ethics.

Check References

Most advisors are willing to provide references so that they may be able to validate the quality of service they provide. Make sure that you contact the individual references provided so that you may be able to ascertain whether the planner is capable of providing the service you require.


Financial advisors are usually paid a fee or commission for the services provided. Get an estimate of the cost that you may be paying so that you know that it fits your budget. Avoid commission based advisors as they may push a particular package if they get a cut of the revenue. Compare the fees so that you are able to negotiate a better deal.

Fiduciary Standard

The advisor need to have the highest fiduciary standard that means that they always act in the best interests of their client. You can start by asking people if they may be able to recommend a planner with successful experience. If you feel that the advisor is not acting in your best interest it is best to avoid them.

After you have shortlisted the financial advisors it is advisable to interview them individually so that you may be able to find out about the type of service that may be provided by them. You can ask the financial planners questions about their qualifications, experience and specialties. Apart from this, you can also ask how many clients they have and how long they have been providing advice.

This can help in ascertaining how well they are able to communicate with clients and whether they are truthful in their communication. You may be able to make a good choice when you become aware of all these aspects.

Ask as many relevant questions about the various investment plans that are available so that you are able to choose wisely and benefit from it. Avoid advisors who promise unrealistic returns as this is usually the first sign of fraud. A good planner should help you understand financial planning and the necessary risks that are needed to achieve these goals.

Set expectations and determine how close you want to work with the financial advisor of your choice. Be specific about the investment goals so that you may be able to get the advice you need. The person you trust your money with needs to have the highest levels of integrity so that you are assured that your finances are safe. As there are many great financial advisors available in the market, all that you need to do is to spend a little time and effort so that you are able to choose one that is right for you.

Nigel Walters has a keen interest for investments, stocks and the property market he writes on a regular basis for various online magazines and blogs, Emerald knight consultants being one of these.