Finding a good financial advisor can feel overwhelming, but it’s one of the most important decisions for your financial future. Whether you’re managing wealth, planning for retirement, or navigating a major life event, the right advisor can provide the expertise and guidance you need. With so many options and factors to consider, where do you start?
Are you someone who says this about managing your money: “Hey, I can do this myself”?
Well…We can all do MANY things ourselves, from our laundry to our cooking to our taxes to our legal work. But the question is…with only 24 hours in a day, is managing money a good use of your time, or should you outsource the process to a professional who does this for living? This way, you can go and spend your time doing things that you can be the best at.
If you are sold on the direction of hiring a wealth planner, financial advisor or wealth manager, we can help direct you on how to find a “good” one. We have the word “good” in quotes because good is very subjective.
This is where educational guidance can be invaluable, and you don’t fall for sales tricks or loyalty to a college roommate to select your wealth manager.
Drawing on years of experience in the wealth management industry, our founder, Amy Parvaneh, shares insights on what to look for in a financial advisor, which questions to ask, and how to use trusted resources to evaluate potential advisors effectively. These tools can help you feel confident in your decision-making process.
Amy Parvaneh has spent her career helping individuals and families navigate the complexities of wealth management. Her deep industry knowledge and connections give her a unique ability to connect those seeking to find an advisor with those who are not only qualified but also aligned with your goals.
Amy’s approach removes the guesswork and stress often associated with finding a financial advisor, CPA or lawyer. By leveraging her background and connections, you can save time and avoid common pitfalls, ensuring that your financial future is in trusted hands.
What Makes a Good Financial Advisor?
A good financial advisor is more than just someone who manages your investments. They are a partner who helps you achieve your financial goals while prioritizing your best interests. Here’s what to look for:
1. Relevant Credentials
Look for advisors with recognized certifications like:
Certified Financial Planner (CFP): Comprehensive financial planning expertise.
Chartered Financial Analyst (CFA): Specialization in investment management.
Certified Public Accountant (CPA): Expertise in tax planning.
These credentials indicate rigorous training and adherence to ethical standards.
2. Fiduciary Duty
A fiduciary is legally obligated to act in your best interest, ensuring unbiased advice. Always confirm whether the advisor operates as a fiduciary.
3. Transparent Fee Structure
Advisors typically charge fees in one of three ways:
Fee-only: A flat fee or percentage of assets under management (AUM), with no product sales.
Commission-based: Earnings tied to financial product sales, which can create conflicts of interest.
Hybrid: A combination of fees and commissions.
A good advisor will explain their fee structure clearly and transparently.
4. Strong Communication Skills
Your advisor should be accessible, proactive, and able to explain complex financial concepts in a way that makes sense to you. Regular updates and reviews are also key to maintaining a productive relationship.
Steps to Find a Good Financial Advisor
1. Define Your Financial Goals
Start by identifying your needs. Are you looking for help with retirement planning, managing wealth, or creating a tax-efficient strategy? Clear goals will guide your search and help narrow down potential advisors.
2. Use Reputable Resources
Leverage trusted platforms to find advisors with the right credentials and experience:
CFP Board: Search for certified financial planners.
NAPFA: Find fee-only financial advisors.
Investopedia or NerdWallet: Use online tools to match with advisors.
3. Evaluate Potential Advisors
Once you have a shortlist, schedule introductory meetings to assess their expertise and compatibility. Ask questions like:
What is your approach to financial planning?
How do you tailor your advice to meet individual client needs?
What are your fees, and what services are included?
4. Verify Their Background
Check for any disciplinary actions or complaints through tools like FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure (IAPD).
5. Test for Compatibility
The advisor-client relationship is built on trust and communication. Choose someone who listens to your concerns and explains strategies in a way you understand.
Common Mistakes to Avoid When Choosing an Advisor
1. Focusing Solely on Fees
While fees are important, the cheapest option may not always provide the best value. Focus on the overall quality of service.
2. Ignoring Credentials
Not all financial advisors are equally qualified. Ensure they hold certifications relevant to your needs.
3. Skipping Background Checks
Always research an advisor’s history to avoid working with someone who has unresolved complaints or disciplinary actions.
4. Choosing Without a Clear Goal
Without defined objectives, it’s hard to find an advisor who aligns with your needs. Take the time to clarify your goals before starting your search.
How Amy’s Approach Saves You Time and Effort
One of the biggest challenges in finding a financial advisor is sifting through countless options and verifying their qualifications. Amy’s personalized process simplifies this by leveraging her expertise and network to connect you with the right fit.
Her client-focused approach ensures that you not only find a qualified advisor but also one who understands your unique goals. By removing the uncertainty and stress, Amy helps you focus on what matters most—achieving your financial aspirations.
The Benefits of Finding the Right Financial Advisor
Working with the right financial advisor can bring peace of mind, confidence, and measurable results. A good advisor:
Helps you create a tailored financial plan.
Guides you through life’s major financial decisions.
Keeps your investments aligned with your goals.
Monitors and adjusts your plan as your needs change.
The long-term benefits of having a trusted advisor far outweigh the effort involved in finding one.
Start Your Search with Confidence
Finding a good financial advisor doesn’t have to be a daunting task. With the right resources, clear goals, and some direction from people like Amy Parvaneh, you can connect with an advisor who will be a true partner in your financial journey.
By focusing on your needs, researching your options, and relying on trusted expertise, you’ll ensure that your financial future is in capable hands.
Some questions we can help you answer:
How do I find a good financial advisor near me?
What are the steps to choosing a financial advisor?
How can I tell if a financial advisor is trustworthy?
What credentials should I look for in a financial advisor?
How do I evaluate a financial advisor’s experience?
What does it mean for a financial advisor to be a fiduciary?
How do I compare financial advisors based on their fees?
What’s the best way to start my search for a financial advisor?
How can I find a financial advisor who specializes in retirement planning?
What are the benefits of working with a fee-only financial advisor?
What questions should I ask a potential financial advisor?
Where can I find reviews for financial advisors?
How can I check if a financial advisor has complaints or disciplinary actions?
What’s the difference between a wealth manager and a financial planner?
How do I know if a financial advisor aligns with my goals?
What’s the most affordable way to hire a financial advisor?
How do I find financial advisors for high-net-worth individuals?
What are the warning signs of a bad financial advisor?
What tools can I use to find a good financial advisor?
How do I choose between a local financial advisor and an online one?
What’s the average cost of hiring a financial advisor?
Can I find a financial advisor who works on an hourly basis?
How do I find a financial advisor for estate planning?
Are financial advisor matching tools reliable?
What’s the difference between a CFP and a CPA?
How can I find a financial advisor who specializes in tax planning?
What role does a fiduciary play in financial advising?
How do I assess a financial advisor’s communication style?
What’s the best website for finding certified financial advisors?
Why is it important to work with a fiduciary financial advisor?
Selecting a financial advisor is a critical decision that should be based on more than just surface-level rankings and accolades. By considering factors such as technology investments, client engagement capabilities, modernization efforts, and the authenticity of awards, you can make a more informed choice that aligns with your financial goals and values. Remember, the best financial advisor is one who not only manages your wealth effectively but also prioritizes transparency, communication, and a client-centric approach.