Finding the right financial advisor – one who is a good fit for you and your family – can be very challenging.
In this video David Kern, a financial advisor at Wealthquest, shares some questions and thoughts to keep in mind when you’re looking for a financial advisor.
First, it’s important to understand the company that they work for, how it’s structured, the services it offers, and how you pay for them. Click here to learn more about how Wealthquest operates.
Second, it’s important to know how experienced your advisor is. For example, what types of families have they primarily worked with in the past? What are their credentials and certifications?
Third, there’s the crucial question of how your financial advisor is compensated for the services (s)he offers you. This is important because you want to be sure that your advisor is compensated such that (s)he acts as a fiduciary, who is someone that is required by law to act in your best interests. To learn the difference between a fee only and a fee based financial advisor, click here.
Fourth, make sure to hire a financial advisor who isn’t afraid to have hard conversations with you, tell you the uncomfortable truth that you might not like to hear, and hold you accountable if you don’t follow his/her recommendations that are ultimately in your best financial interests.
To have these tough conversations though, your advisor has to be willing to ask good questions. Hence, it’s important to hire a curious financial advisor who knows how to ask great questions that will help him/her truly understand you, your family, and your goals.
Lastly, and arguably most importantly, make sure that your advisor is a good listener. After all, there’s no point in asking good questions if you’re not a good listener.