How to find a new financial advisor
How Select Advisors Institute can help you navigate the complex world of wealth management on a complimentary basis
As a coach who has been heavily entrenched in the world of finance and wealth management, I would love to help you navigate this space and find a suitable financial advisor.
How to Find the Right Financial Advisor for Your Needs: Insights from Amy Parvaneh, Founder of Select Advisors Institute
In a world brimming with hundreds of articles, guides, and tips on finding a financial advisor, the process often feels more confusing than it should. As someone deeply entrenched in the financial services industry since 2001, I’ve observed firsthand how complex this decision can seem. But it doesn’t have to be.
I’m Amy Parvaneh, founder of Select Advisors Institute, and my journey in the financial world began over two decades ago. From starting in investment banking and equity research to working with some of the most respected firms like Goldman Sachs and PIMCO, I’ve developed a unique perspective on what makes a financial advisor truly exceptional.
The Journey That Shaped My Perspective
When I entered this field, the financial services industry was dominated by large wirehouses such as Morgan Stanley, Merrill Lynch, and Goldman Sachs. These institutions offer immense resources: private banking, mortgage lending, alternative investments, and even perks like private jet services. For many, the appeal of a one-stop shop is undeniable. However, this scale often comes with a trade-off: a feeling of being just another account in a vast, institutional machine.
While at Goldman Sachs, I worked closely with billionaires and high-net-worth individuals, helping them navigate complex financial landscapes. It was here that I learned the immense value of personalized service, which often gets diluted in larger firms.
After leaving Goldman Sachs, I joined PIMCO and later became a professor of wealth management at universities like Pepperdine. Teaching and collaborating with registered investment advisors (RIAs) opened my eyes to a different side of the industry: the boutique, entrepreneurial firms that focus on offering a more personalized, home-like experience.
These RIAs are akin to doctors leaving a massive hospital to start a private practice. They wear many hats, juggling HR responsibilities, business development, and client service. Despite these challenges, they provide an intimate, tailored experience that many clients value.
Since 2014, I’ve been working primarily with RIAs, helping them scale their businesses while maintaining their unique client-centric approach. Today, at Select Advisors Institute, we focus on empowering financial advisors and RIAs to build human connections in an industry increasingly dominated by algorithms and automation.
Questions to Ask When Choosing a Financial Advisor
If you’re searching for a financial advisor, the sheer volume of choices can be overwhelming. It’s crucial to cut through the noise and focus on what truly matters.
Here are five key questions you should consider:
What is their area of expertise?
Financial advisors often specialize in different areas, from retirement planning to estate management. Ensure their expertise aligns with your specific financial goals.How do they get paid?
Understanding their fee structure is essential. Are they fee-only, commission-based, or a hybrid? Transparency here can prevent conflicts of interest.What is their approach to investment?
Do they take a hands-on approach, or do they rely heavily on automation and algorithms? Your comfort level with their strategy matters.Are they affiliated with a large firm or independent?
Both options have pros and cons. Large firms offer extensive resources, while independent advisors often provide a more personalized experience.How do they communicate with clients?
Frequent, clear communication is key to a successful advisor-client relationship. Ask how often they provide updates and how accessible they are.
Of course, asking the questions is easy; analyzing and dissecting the responses is what truly matters.
That’s where my firm can be helpful!
Why the Right Advisor Matters
Finding a financial advisor isn’t just about managing money—it’s about finding someone you can trust to guide your financial future. Advisors should not only understand your goals but also provide the interpersonal connection that makes the journey rewarding.
At Select Advisors Institute, we aim to simplify this process. By working with advisors who prioritize client relationships, we ensure investors receive the guidance and care they deserve.
Contact Us
If you’re ready to find the right financial advisor or want to learn more about improving your practice, reach out to Select Advisors Institute today. With decades of experience and a commitment to personalized service, we’re here to help you navigate the financial world with confidence.
Amy has made it her mission to help investors of all wealth sizes navigate this highly complex space of wealth management. Whether you already have a financial advisor or looking for a new one, give us a call so we can help you source advisors that you may not have considered otherwise!
Meet Amy Parvaneh
Amy Parvaneh is the founder and CEO of Select Advisors Institute, a firm dedicated to helping financial advisors and RIAs grow their practices through a human-centered approach. With a career spanning over two decades, Amy has worked with industry giants like Goldman Sachs and PIMCO, managing relationships with high-net-worth clients and uncovering over $1 billion in client net worth.
Beyond her work with advisors, Amy is deeply passionate about helping investors navigate the complex world of wealth management. On a complimentary basis, she offers guidance and education to those seeking clarity in finding the right financial advisor, making it her life’s mission to empower individuals with the knowledge they need.
Amy’s unique blend of industry expertise and a personal commitment to education reflects her belief that every investor deserves trusted advice and a clear path to financial success. For Amy, it’s not just about business—it’s about giving back, simplifying the financial landscape, and helping others make informed decisions with confidence.
Selecting the right financial advisor is a pivotal step toward achieving your financial goals. Whether you're planning for retirement, managing investments, or navigating significant life changes, a qualified professional can provide invaluable guidance. This comprehensive guide will help you understand the roles of financial advisors, financial planners, and Certified Financial Planners (CFPs), and offer insights into choosing the best fit for your needs.
Understanding Financial Advisors and Financial Planners
The terms "financial advisor" and "financial planner" are often used interchangeably, but they encompass different scopes of services:
Financial Advisor: This is a broad term that includes professionals who assist with various financial services, such as investment management, estate planning, and insurance. Financial advisors may hold various titles and certifications, and their expertise can vary widely.
Financial Planner: A subset of financial advisors, financial planners specialize in creating comprehensive strategies to help clients meet long-term financial objectives. They focus on areas like retirement planning, tax strategies, and budgeting.
The Role of a Certified Financial Planner (CFP)
A Certified Financial Planner (CFP) is a financial planner who has earned the CFP designation by meeting rigorous education, examination, experience, and ethical standards set by the Certified Financial Planner Board of Standards. CFPs are trained to provide holistic financial planning and are committed to acting in their clients' best interests.
Key Considerations When Choosing a Financial Advisor
Credentials and Certifications: Look for advisors with recognized certifications, such as the CFP designation, which indicates a commitment to comprehensive financial planning and adherence to high ethical standards.
Fiduciary Duty: Ensure the advisor is a fiduciary, meaning they are legally obligated to act in your best interest. CFPs are required to uphold this standard, providing an added layer of trust.
Compensation Structure: Understand how the advisor is compensated. Fee-only advisors charge a flat fee or hourly rate and do not earn commissions from product sales, reducing potential conflicts of interest. Commission-based advisors may have incentives to recommend certain products.
Services Offered: Identify the specific services you need, such as retirement planning, investment management, or tax advice, and ensure the advisor has expertise in those areas.
Experience and Background: Review the advisor's experience, including their years in practice and areas of specialization. Tools like FINRA's BrokerCheck can provide background information and reveal any disciplinary actions.
Clientele: Consider whether the advisor typically works with clients whose financial situations are similar to yours, as this can influence their familiarity with your specific needs.
Communication Style: Assess whether the advisor's communication style aligns with your preferences. Regular, clear communication is essential for a successful advisory relationship.
Steps to Finding a Financial Advisor
Assess Your Financial Needs: Determine the areas where you need assistance, such as investment management, retirement planning, or debt reduction.
Research Potential Advisors: Use online resources, such as the CFP Board's "Find a CFP® Professional" tool, to locate certified professionals in your area.
Verify Credentials: Confirm the advisor's certifications and check for any disciplinary history using tools like FINRA's BrokerCheck.
Interview Multiple Advisors: Meet with several advisors to discuss your financial goals and assess their approach. Ask about their experience, services offered, and how they can help you achieve your objectives.
Understand Their Approach: Inquire about their investment philosophy, planning process, and how they tailor strategies to individual clients.
Discuss Fees and Compensation: Ensure you understand how the advisor is compensated and any potential conflicts of interest. Transparency in fees is crucial for building trust.
Check References: Ask for references from current clients to gain insight into the advisor's effectiveness and client satisfaction.
Red Flags to Watch For
Lack of Transparency: Be cautious of advisors who are vague about their fees or compensation structure.
Pressure Tactics: Avoid advisors who pressure you into making quick decisions or purchasing specific products.
Unverifiable Credentials: Ensure the advisor's certifications are from reputable organizations and can be verified.
Disciplinary History: Check for any past disciplinary actions or complaints against the advisor.
The Importance of a Good Fit
A successful relationship with a financial advisor is built on trust, communication, and a shared understanding of your financial goals. Take the time to find an advisor who not only has the right qualifications but also aligns with your values and financial objectives.
Conclusion
Choosing the right financial advisor, financial planner, or Certified Financial Planner is a significant decision that can profoundly impact your financial well-being. By thoroughly evaluating potential advisors based on their credentials, fiduciary status, compensation structure, and alignment with your financial goals, you can establish a partnership that supports your journey toward financial security and success.
Contact us if you have any of the following questions!
How do I find a good financial advisor?
What should I ask a financial advisor before hiring them?
Is it better to work with a big firm or an independent advisor?
What’s the difference between an RIA and a wealth manager?
How do I choose the right financial advisor for me?
What questions should I ask when meeting a financial advisor?
Why is finding a financial advisor so hard?
Are independent financial advisors better than big firms?
How much does a financial advisor cost?
What does a financial advisor do?
What is an RIA in wealth management?
What’s the best way to pick a financial advisor?
Should I work with a financial advisor or do it myself?
Can I trust financial advisors?
What’s the difference between fee-only and commission-based advisors?
How do financial advisors get paid?
What’s the most important thing to look for in a financial advisor?
Who is Amy Parvaneh in the financial industry?
Does Select Advisors help investors find financial advisors?
Why do people hire financial advisors?
What’s the best financial advisor near me?
How do I know if a financial advisor is trustworthy?
Should I work with a local or national financial advisor?
What should I know before hiring a financial advisor?
Is it worth hiring a financial advisor?
How can I interview a financial advisor?
What is a fiduciary financial advisor?
How do I check a financial advisor’s credentials?
What does a boutique financial advisor mean?
Are large wealth management firms better?
How do I find an independent financial advisor?
Why are financial advisors so expensive?
How do I know if a financial advisor is legitimate?
What’s the process of hiring a financial advisor?
What are the benefits of an RIA?
How can I find a fee-only financial advisor?
What does an independent RIA do?
How can I compare financial advisors?
What is a private wealth advisor?
What’s the difference between a financial planner and a financial advisor?
How can I evaluate a financial advisor?
What makes a financial advisor good?
How do I fire a financial advisor?
What are common red flags in financial advisors?
How do I know if a financial advisor is right for me?
Should I hire a financial advisor for retirement planning?
What is the role of a financial advisor?
How do I find a financial advisor for high-net-worth individuals?
Are financial advisors worth it for small investors?
How do RIAs differ from traditional advisors?
Can a financial advisor help with taxes?
What are the advantages of a boutique financial advisor?
Should I choose a financial advisor based on their firm?
How do I know if a financial advisor is a fiduciary?
What is fee compression in financial advising?
How can I find a financial advisor who understands my goals?
What does it mean to work with a human-centric financial advisor?
How do I avoid scams when hiring a financial advisor?
What’s the role of a financial advisor in estate planning?
Should I meet with multiple financial advisors before choosing?
What are the benefits of working with an RIA?
How do financial advisors make their money?
How can I check a financial advisor’s background?
What should I ask a financial advisor about fees?
Why do financial advisors recommend RIAs?
Can a financial advisor help me grow my wealth?
What’s the difference between financial advising and wealth management?
What does it take to be a good financial advisor?
Are boutique RIAs better than wirehouses?
How do I pick the right wealth manager?
What questions should I ask my RIA?
What’s the value of financial advisors in today’s economy?
How do financial advisors handle client relationships?
What’s the best way to interview a financial advisor?
How do I start working with a financial advisor?
How do RIAs provide a boutique experience?
Can I negotiate fees with a financial advisor?
How do financial advisors handle risk management?
Why is personal connection important in financial advising?
What should I expect in my first meeting with a financial advisor?
How do I find a financial advisor with a human-centric approach?
What’s the benefit of financial advisors who work independently?
What’s the role of Select Advisors Institute in the financial industry?
How can Amy Parvaneh help me find the right financial advisor?
What’s the future of financial advising?
Why is Amy Parvaneh a trusted expert in financial services?
How does Select Advisors Institute simplify finding a financial advisor?
Choosing the right wealth manager can be overwhelming, but this guide simplifies the process by breaking down key steps. Learn the differences between big banks and independent RIAs, the pros and cons of each, and what services they provide beyond managing investments. Understand how to assess their fees, investment strategies, and financial planning capabilities, as well as what questions to ask during interviews to identify the best fit for your goals. Whether you’re looking for help with estate planning, tax strategies, or retirement planning, this guide covers everything you need to know to make an informed decision and find a trusted partner to manage your wealth effectively.