In today’s episode, Tim Regan and Katie Umland cover the top ten factors you should consider when choosing a financial planner to work with along your money management journey.
If you Google “financial planner,” you’ll likely see a list of advisors near your hometown. But as you scroll through that list, how do you know which financial planner is right for you?
There are several things to consider before you hire a financial advisor. In this week’s episode, Tim and Katie delve into their top ten factors you should consider while on the search. The first on their list is fiduciary duty.
“When somebody acts as your fiduciary, they have to make sure that they’re offering you the best that’s available for your situation – they have to put you at the heart of all those decisions,” Tim explains.
Tim and Katie also put a large emphasis on ensuring the firm’s values align with your own personal values.
“For example, for us here at PrairieView Wealth Partners, our values are that we are Christian,” Tim says. “And so just about everything that we do, all the decisions that we make when we sit down with clients, is with the idea that everything we have was a gift from God.”
Similar worldviews can help to make sure that you and your advisor are on the same page when it comes to big financial decisions. If your goals is to give back through philanthropy, and your advisor is focused on building your personal wealth, it could create hiccups in the relationship.
In addition to fiduciary responsibilities and value alignment, it’s important to talk to any potential financial partner about regulatory backgrounds, technology solutions the firm uses, how they wish to be compensated and more.
Listen to the full episode to hear all ten of Katie and Tim’s top tips for choosing the right advisor, and be sure to check out our other episodes!
Key Timestamps and Topics
- 00:01:20 – Tim explains that a financial planner takes a holistic approach to help individuals achieve their financial goals by looking at various aspects such as investments, taxes, insurance and estate planning.
- 00:07:19 – Tim discusses the importance of working with a financial planner who acts as a fiduciary, meaning they are legally obligated to prioritize the client’s best interests and offer the best available options.
- 00:09:42 – Clients need to trust their financial planner’s competence and that their advice is not solely motivated by personal gain.
- 00:13:30 – It is crucial for a client and an advisor to have shared values to establish a strong relationship.
- 00:14:49 – Advisors need to have the necessary licenses to sell financial products, but additional designations like the Certified Financial Planner (CFP) indicate a higher level of professionalism and expertise.
- 00:17:53 – Different advisors can specialize in different areas, providing a comprehensive and well-rounded approach to financial planning.
- 00:19:15 – Regulators like FINRA monitor advisors to ensure they are adhering to the rules and regulations governing the industry.
- 00:20:46 – Transparency in compensation structure is important to understand the incentives and motivations behind an advisor’s recommendations.
- 00:21:51 – Advisors should have up-to-date technology to provide a seamless client experience.
- 00:27:28 – The importance of finding the right financial advisor is discussed, emphasizing the need for comprehensive services, long-term planning, and a deep understanding of the client’s goals and values.
- 00:28:24 – The significance of a long-term relationship with a financial advisor is compared to having a long-standing relationship with a pastor.
- 00:29:12 – The advisor helps navigate through various life stages, including passing down wealth to future generations or providing support during difficult times.
- A quick recap of the ten important factors to consider when choosing a financial advisor is provided, including fiduciary duty, trust, values, credentials, compensation and the importance of a long-term relationship.
3 Key Takeaways
- It’s essential to look beyond job titles when choosing a financial advisor. The perfect fit is someone who considers every aspect of your financial life, not merely investments. Therefore, a comprehensive analysis of potential advisors should include necessary credentials, their communication style, and breadth of services.
- A fiduciary planner pledges to act in your best interest, placing your needs above their own. This commitment is vital to ensure that every financial advice is free from bias and is aimed towards your financial success.
- Trust is the make or break of any relationship, particularly one that involves your financial future.
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