How to Hire a Financial Advisor
- 1). Prepare a hiring timeline. You may need four to six weeks to complete the hiring process, including two to three weeks for the interviewing process, and another week or so to complete the background checks.
- 2). Look for a registered financial adviser. Individuals or firms providing advice about investing in securities, such as stocks and bonds, are known as securities advisers or investment advisers. They register with either the Securities and Exchange Commission (SEC) or a state securities agency. Certified financial planners provide a range of financial advice, including retirement, tax, insurance and estate planning. They usually register with the Certified Financial Planner Board of Standards.
- 3). Check the websites of the respective regulatory bodies to find the investment advisers or financial planners in your area. Review their available biographical information, including company or individual websites. Make a list of adviser candidates.
- 4). Conduct telephone or in-person interviews with each candidate. Find out about her education, licenses, expertise and experience. Ask about the fee and commission structure. Commission-based advisers may push products that offer them the highest commission income. Find out about her investment philosophy. Make sure that she, and not her assistant, will manage your file. Some advisers have so many clients that they cannot attend personally to all of them. See Resources for interview questionnaire templates for both investment advisers and financial planners.
- 5). Complete and compare the questionnaires. Make a short-list of three or four advisers and follow-up with additional clarifying questions.
- 6). Make a preliminary selection. Conduct background checks. Review the disclosure documents filed with the respective regulatory authority and check the disciplinary history.
- 7). Confirm your choice. Contact the selected adviser and agree on a date and time for the introductory financial planning session. Thank the other advisers for their time, especially the ones on your short list.
