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Whether planning for retirement or other financial goals, you may wonder if it makes sense to work with a professional advisor.
It might. Many people are comfortable doing their own financial planning. Others enjoy a little extra help along the way.
Curious about what this entails? In this article, you’ll learn:
- Where to look for trusted professionals
- How to prepare for an initial meeting
- What to do and not do moving forward
How do I find the right financial professional for me?
Kristi Martin Rodriguez, Senior Vice President at Nationwide Retirement Institute, offers this advice: "Having someone who’s knowledgeable about financial planning is definitely important. That’s where a certified financial professional can help you develop a plan that’s tailored to meet your long-term retirement and savings goals.”
Certified Financial Planner®: Fast Facts
| Must hold a bachelor's degree |
| Must complete specific financial planning coursework |
| Must pass a rigorous exam |
| Must act as a fiduciary |
| Must agree to act according ot high ethical standards |
Where can you find a financial advisor?
- Ask your friends or family for a referral
This is a great way to find a trusted advisor and learn a little about them in advance. - Check with your retirement plan sponsor
If you have an employer-sponsored plan, many offer access to a financial planner. - Inquire at your financial institution
Many banks offer educational seminars where you can connect with an advisor. - Search online
This can be a good way to find prospective advisors. Be sure to read their reviews!
It’s important not to jump at the first name you find or referral you get. Develop a short list of potential advisors and take the time to interview each one. This helps you learn more about their skill set, education, and other background.
Interviewing a Prospective Financial Advisor |
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Ask these questions before signing a contract |
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What license(s) and/or certifications do you have? |
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Have any disciplinary actions been taken by your professional organization? |
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What’s your philosophy and approach to financial planning? What does your process look like? |
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How do you get paid?
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After you’re satisfied that the financial professional is certified, competent, and has a clean disciplinary record, you have one more task. The biggest and most important question is: Do I feel comfortable working with this person?
If yes, you may well have found your professional.
If no, keep looking. Working with someone who provides financial advice requires trust and a reasonably high level of relational comfort. It’s very important for you to be satisfied before you enter into such an engagement.
How do I prepare for the first meeting with a financial advisor?
Your situation is unique. However, there are certain steps you can take to ensure a successful first meeting. A financial professional will work hard to coordinate your financial plan in such a way that the various components work together.
Working With Your Financial Advisor | |
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| What to bring to your first meeting | |
| Personal details |
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| Income and expenses |
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| Portfolio Information |
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Most importantly, you should be prepared to share your life goals and dreams. This is perhaps the most important area of preparation, because it will serve as a goal post for the path you and your financial advisor will travel.
What should I not say or do when working with a financial advisor?
First, don’t extend your trust too easily. There are, unfortunately, people and firms in the financial services universe who should not be trusted. Doing your homework up front, as described above, will go a long way toward protecting yourself.
At the same time, don’t withhold your trust without reason. Many professionals and firms work hard to be worthy of it. And ultimately, you and your financial professional must establish a relationship built on mutual trust. There is no other way for you to effectively work together.
Tips for Working With Your Financial Advisor | |
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| ✅ Do... | ❌ Don't... |
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✅ Come prepared, with an idea of your life goals and financial needs ✅ Be willing to partner with your advisor to identify the strategies that fit your needs |
❌ Bring all your statements in a bag for the advisor to sort ❌ Withhold reasonably requested information ❌ Provide misleading financial or other relevant details ❌ Misrepresent your risk tolerance ❌ Assume there’s only one perfect solution |
Even with these tips, there’s still quite a bit you need to contribute to the process. The value of a financial professional is that they can help guide you in the process and facilitate your progress in achieving your life goals. They can also provide insights when things do not go exactly as planned and adjustments need to be made. Finally, they can serve as a good source of information and as a trusted advisor.
The bottom line
You don’t need to work with a financial professional to be successful, but if you choose to do so—and you engage the right person for you—you may find that the path to achieving your life goals will be much cleaner and more straightforward. In fact, you may well find yourself being even more successful than if you try to do everything on your own.
