It seems like a bit of a flex to me when I mention that my husband and I have a financial advisor to help us navigate his months-old post-retirement life. Yet, nothing about our income or lifestyle has put us in the Richie Rich/Scrooge McDuck categories.
That’s the misconception many people have about using a financial advisor: that you have to have a lot of money—and I mean a whole lot—to make it worth finding one. In truth, there’s nothing all that bougie about relying on someone to educate you about the best ways to invest your money and protect you from making costly mistakes.
The Ohio Department of Commerce Division of Securities has a helpful site for selecting a financial advisor. Whether you’re interested in starting a college fund, getting out of debt, preparing for retirement, or simply getting your financial house in order, the right advisor can help you establish specific goals, identify a strategy to attain them, and make sure you remain on track. Developing a relationship with an adviser can significantly influence your future financial well-being.
Before you can start your search for a financial advisor, it’s important to identify what it is you’re hoping to achieve. Financial advisors offer a range of services, from savings goals and budgeting to retirement planning and asset management. Understanding your specific needs will help to streamline the search process and ensure you select an advisor whose expertise aligns with your objectives.Researching Advisor Credentials
The financial advisory landscape encompasses various professionals, including Certified Financial Planners (CFPs) and Registered Investment Advisors (RIAs), each with distinct credentials and areas of expertise. Ensuring that advisors adhere to a fiduciary duty, in which they are obligated to act in your best interests, can offer peace of mind since you’ll be entrusting them with your financial goals.
Exploring Different Advisor Types
From digital options like robo-advisors to in-person planners, there are a wide range of advisor types that exist to cater to diverse preferences and budgets. In addition, resources such as FINRA’s “Working With An Investment Professional” can help Ohioans understand the range of available professionals and services.
Vetting an Advisor
Once you’ve identified potential advisors, conducting a thorough background check is imperative. Ohio residents can research the background and experience of financial brokers, advisors and firms by utilizing FINRA’s Broker Check. That tool can also help verify that an individual or firm is registered, as required by law, to sell securities and/or offer financial advice. In addition, make sure to verify an advisor’s credentials, review service offerings, and understand their fee structures, such as whether it is percentage-based, commission-based, or involves flat fees. By doing this work up front, you can help ensure alignment between your financial ambitions and the adviser’s capabilities.
Asking for Referrals
If you have friends or loved ones who use financial advisors, you may consider asking them about their experience. If they are happy with their advisor and have a longstanding relationship, you may consider reaching out to the advisor to see if they’d be willing to engage in an introductory conversation.
Making the Selection
You’ll be engaging with your financial advisor regularly, and you will often be discussing sensitive items. It’s important that, in addition to having the appropriate credentials and background, you feel comfortable with your advisor. If you don’t feel 100% comfortable with an advisor you’re considering, you may consider continuing your search.
