What to Consider When Choosing a Financial Advisor

When it comes to financial advice, it seems like we can find it almost anywhere on the internet. There is so much of it in fact, that it can be overwhelming. Sometimes it’s best to leave certain aspects of the finance world to the professionals.

This is where financial advisors come in. Financial advisors are trained to help individuals with their investments and money goals. But how do you know who is the right advisor for you and your financial needs? What it boils down to, is knowing exactly what you are looking for. There are many different factors to consider when finding an advisor. 

Most people don’t realize, but the word ‘financial advisor’ is somewhat of an umbrella term. “When looking for your representative you will need to consider a financial advisor vs. a financial planner. The two have similarities but are meant for different aspects of a client’s financial journey,” shares Canada Life & Quadrus Investments Wealth Manager Serge Robichaud. 

A financial planner is a type of advisor that specializes in comprehensive long-term financial planning for clients. The regulations for a financial planner vary across each province, but in most cases these professionals will hold some type of certification. 

A financial advisor is a broad term for someone who manages your money and investments. Types of advisors can include bankers, stockbrokers, insurance agents and more. 

To choose what type of financial professional is the right fit, you need to consider what part of your finances needs guidance. Is it only specific investments, or is it on a bigger scale where you need assistance with your entire financial life? Once you know exactly what you want help with, you can choose what specific type of financial professional would be able to provide those services. 

Another thing to consider is how much help you require. Are you looking for long term assistance or do you need only advice and help on specific investments sporadically? If you need financial planning advice it is important to note that most planners have a fee attached to their services. If your needs are focused then you will want to seek out someone who will work on a per-project basis. If you need more year round help then paying an annual fee might be more cost effective than per project. 

How much you want to be personally involved will help determine how much help you require. The more hands on you are with your finances the more cost effective it can be as you won’t need to pay for as many services. “We typically see those who are very busy seek a full time advisor. It is also very common to see older investors have full time advisors to ensure that their finances are managed even when they cannot personally do so,” shares Robichaud who has worked with clients on their finances for over 10 years. 

Once you have your goals set and know what type of advisor you are looking for it is time to make your choice. It is wise to meet with multiple advisors so you can weigh your options and find the right fit. You will want someone who shares your values when it comes to financial matters. They are a representative of you, so it matters that you find the right person to guide you to your goals. 

For many people, once they have worked with the right financial professional, they will continue to nurture that relationship and have them in their corner for life.