Signs You Need a Financial Advisor (and How to Find One)

Knowing when you may need the help of a Financial Advisor can be difficult.

In this Learning Bites segment, we welcome Retirement and Transition Coach, Pete Finlon to discuss what some of the signs are that may indicate that you need some help and how to go about finding the right advisor for you.

Here is our conversation;

(Please note; This content is provided for general informational and educational purposes only and is not meant as a substitute for professional advice)

Here are some of the highlights of our conversation;

What are some of the signs that may indicate whether someone needs a financial advisor?

• The number one indicator may be when the world feels confused financially to you

  • For example, having different retirement income sources, possibly receiving an inheirtance or sold the house, shifting to living on a fixed budget. 

  • Possibly dealing with tax issues, or social security or government pensions plus having the need to deal with healthcare system

  • Not exactly sure of what your retirement financial needs are going to be and whether you have enough (or even know how to figure out how much enough is)

What type of finacial advisor / planners that could support  services are there to help?

• There are online services known as robo-investing. You can plug in your numbers and the program will provide you with something 

• There are many different advisors / planners but the best place to start is classifying your personal situation. For example;

  • Are you still in the accumulation phase?

  • Are you in the distribution phase?

  • Are you in need of an estate plan, tax plan and still wanting to work?

  • Based on your needs, then begin the search to pick the right financial advisor for you

How do you get started in finding the right Financial Advisor?

1. Ask around. Talk with friends and family as to who they use / recommend

2. Select a minimum of 3 Advisors to interview

   • Remember this is your money and will affect life so tell whoever you meet with that you are interviewing to make sure that you find the right fit

   • Also consider whether the person you select will also potentially be retiring? If so, what is their succession plan?

3. Check out the firm that you are considering

   • Are you looking for just a single service or multiple services and will they be able to support all your needs?

What are some of the checks and balances you should do when looking for a Financial Advisor?

• Go online and research the people / companies you are considering. 

• Check for reviews / reports / anything that provides an indication of the individuals/organizations you are considering

• Check their credentials; 

  • In the US: BrokerCheck: 

    • https://brokercheck.finra.org/

  • In Canada: Canadian Securities Administors: Are They Registered?

    • https://www.securities-administrators.ca/registration/are-they-registered/

• You can ask for references but remember that they will likely not give you a bad reference contact

• Ask questions about the type of clients that they service.

  • What is the average portfolio values?

• What are the fees that they charge? (they have to disclose this)

• Understand their service levels - how quickly will they get back to you and who will actually be doing this?

How often should you expect to receive financial reports? 

• Most companies now have online reports daily and then quarterly reports which can be available online or hard copy

Key points to remember: Even though you may have a Financial Advisor, you are still accountable for what is happening with your money. You need to review the reports and monitor the activity. As well, if in a relationship, ensure that both partners are aware of what is going on.

Also Read: Could You Use a Financial Planner