As you enter into retirement (or prepare to), your financial life gets more complicated. You have assets to protect (and continue to grow), taxes to optimize, a legacy to leave and more. It makes sense to seek help to ensure everything is done correctly.
But finding the best financial adviser for you is easier said than done. There are many qualified professionals available. However, some are not well-suited to manage your money.
Keep reading for a step-by-step approach to finding and vetting a financial adviser. That way, you can start working with a professional with a background and skillset tailored to your needs today — and reap the rewards long into the future.
1. Get clear on your needs
Before you embark on your quest to find the ideal financial adviser for your unique situation, list everything you want them to do for you. You may need help with:
- Managing your retirement income in the most tax-efficient way
- Planning your legacy
- Selecting the right insurance policies for your future, such as long-term care coverage
- Growing your assets in a way that feels safe and sustainable
Then, add a list of must-have characteristics and personality traits. For instance, you may want a fiduciary (someone who will work in your best interest, not their firm's) who is warm, a great listener and funny.
2. Tap your network
Your friends in a similar financial situation may already work with an adviser they love and would happily recommend. Ask them for referrals and their candid opinions.
If you can’t find a financial adviser via word-of-mouth, run searches on the CFP Board and National Association of Personal Finance Advisors (NAPFA) websites. You'll receive pre-vetted listings of professionals in your area, sparing you from the hassle of searching on Google.
3. Verify their credentials
By now, you probably have a solid list of financial advisers to consider. It's time to start narrowing them down.
The first step is to verify their credentials. For instance, if they claim to be a certified financial planner (CFP®), you can check their status on the CFP Board website. Search results will also reveal whether the adviser has ever been disciplined by the board or declared bankruptcy within the last decade.
4. Gauge their expertise
While a CFP® is trained to handle a wide range of money-related concerns, many position themselves as the go-to adviser for a select group, such as retirees or young professionals.
They may also specialize in taxes, estate planning, investing or other financial areas. You'll want to partner with someone with deep expertise in the situations and concerns associated with your life stage and goals.
You can get a strong sense of a financial adviser's experience and competence by reviewing their:
- Company website
- Professional social media presence (especially LinkedIn)
- Financial body of work, such as books, presentations or research papers
Look at the language they use. Does it resonate with you?
5. Read reviews and testimonials
At this stage, Google is your friend. Plug in the name of each adviser you're considering and see what results you get. You can also check specific platforms, such as the Better Business Bureau, Trustpilot, Yelp or your local Chamber of Commerce.
Read several reviews, testimonials and note any patterns, positive or negative. Generally, you'll want to see a long history of happy clients.
6. Interview multiple professionals
Once you have a short list of potential financial advisers, contact them by calling their office or using the online form on their website to book an initial conversation. You shouldn't have to pay anything to learn more about their practice.
During your chat, be sure to find out about their:
- Credentials. What makes them qualified?
- Usual clientele. Are they like you?
- Services. Do they offer what you need, such as comprehensive financial planning, tax preparation or investment management?
- Investment philosophy and strategy. Does it align with your goals and make you feel comfortable? Are they a fiduciary?
- Accessibility. Is it easy to reach them? How often will you meet?
- Performance. What does a real-world example portfolio look like? What's the dollar value of the assets they're managing?
- Fees. Do they charge per hour, per service or based on your portfolio size?
- Disciplinary history. Have they gotten in professional trouble for dispensing questionable advice or acting unethically?
- Succession plan. Do they have someone in place to take over in case you outlive their career?
Thanks to your research, you'll likely have answers to many of these questions before you speak to each prospective adviser. Inquire regardless, and check for consistency with your findings.
Pro Tip: Believe your gut. If it starts waving red flags, move on to the next name on your list.
7. Compare your top picks side-by-side
The last step of finding the right financial adviser is to compare your top two or three options side-by-side. Consider comparing key details, such as services, fees, performance and investment strategy in a table to make the task easier.
Which adviser has the edge? If they all seem the same on paper, which professional made you feel most comfortable and confident when interviewing them?
Now that you've selected a winner, it's time to book your initial appointment. Remember: You don’t have to stay with the same financial adviser forever. If you become dissatisfied with the relationship, you can switch to another professional.
8. Consider building a team
You don't necessarily need to hire one person to handle all your financial needs (though you certainly could). You may have met several qualified professionals during your research, each with their expertise.
If that's the case, you might want to build a team that supports various aspects of your financial life, such as taxes, estate planning, insurance and overall planning.
