Managing finances and investing for your future are important tasks that can be challenging. Many people benefit from working with a financial advisor who knows their needs and goals and makes appropriate recommendations. If you’re considering getting help, you’ll want to find the financial advisor that’s right for you.
- Have you worked with people like me? All of us are unique individuals, yet we share certain characteristics with others — age, income, family situation, etc. You might feel comfortable knowing that a financial advisor has worked with people like you and can readily understand and appreciate your needs and specific goals. The more information you provide about yourself upfront, the better your chances of finding a good match.
- Do you have a particular investment philosophy? Some financial advisors follow a certain investment style. Others might focus on specific investments or categories. There’s nothing wrong with these approaches, but you might be better served by someone who takes a broader view that emphasizes helping clients meet their goals.
- How will you communicate with me? Open and frequent communication is key to a successful relationship with a financial advisor. You’ll want to know what to expect. Will you have annual or semiannual reviews? Between reviews, can you contact your advisor with questions you have? How will an advisor notify you to recommend investment moves? Will you communicate with the financial advisor or are other people involved?
- How do you define success for your clients? When you ask potential financial advisors how they define success, you might want to look for responses that go beyond numbers and encompass statements such as “I’m successful if my clients trust me to do the right things for them. I’m successful when I know I’ve helped my clients reach all their goals.”
- How are you compensated? Financial advisors are compensated in different ways. Some work on commissions, some charge fees, and some combine fees and commissions. There isn’t any best method, but you should understand how an advisor is compensated before you begin a professional relationship.
These aren’t the only questions you could ask, but they’re a good start. When you’re trusting someone to help with your important financial goals, you want to be completely comfortable with that individual. Ask whatever is on your mind.
This article was written by Edward Jones for use by your local Edward Jones financial advisor. Edward Jones, member SIPC
– Roberto De Jesus is a financial advisor for the Edward Jones branch on Cedarcrest Road in Acworth.