What to Look for in a Financial Advisor

A financial advisor provides holistic planning and guidance to help you reach your financial goals. The type of advice they provide varies, but could include investment advice, debt management, budgeting help or insurance coverage analysis. Many work with clients on an ongoing basis and can meet in person or remotely via phone or video chat. They may be employed by a bank, brokerage firm or wealth management firm and can also be independent financial planners.

An initial consultation typically begins with an in-depth questionnaire to understand your current assets, liabilities and income. You’ll also discuss your short- and long-term goals, existing investments and tolerance for investment risk. The questionnaire helps an advisor create your personalized investment portfolio, which they’ll review regularly to make sure it matches your goals and investment horizon. Learn more ex-ponent.com

It’s important to find out if your financial advisor is working as a fiduciary, meaning they have an ethical and legal obligation to put your best interests before their own. It’s also helpful to know how they are paid, as some advisors earn third-party sales commissions on the products they sell you. Those that operate as fiduciaries typically charge flat fees for their services.

The Importance of a Personalized Approach: Why Working with a Local Financial Advisor in Ottawa Matters

You can check an advisor’s credentials by using BrokerCheck, a free service provided by FINRA, the Financial Industry Regulatory Authority. The tool shares details on an advisor’s employment history, licenses and certifications, plus any disciplinary action they have faced. You can also see whether they are a registered financial advisor by searching their name on the Securities and Exchange Commission’s (SEC) website.