ratemyadvisor November 28, 2022

Whether you’re looking to hire your first financial advisor or replace an existing one, you’ve come to the right place. RateMyAdvisor is your go-to source for a listing of thousands of pros in North America.

Choosing the right financial advisor is a tall task considering what’s on the line. You’ll rely on their expertise to ensure you don’t run out of money in retirement. In the near term, they should help you build and preserve your wealth to achieve big goals such as home ownership or putting a child through college. Additionally, they’ll protect your legacy so loved ones are taken care of when you pass. 

You may be asking, “How do I possibly find THE ONE among thousands of qualified advisors?” We’ll walk you through some steps for your search.

1. Get your details in order

It may come as a surprise to you to hear not all advisors want your business. Many have very narrow parameters limiting with whom they can work. Some have asset minimums, meaning you have to have a certain amount of wealth accumulated already. Others specialize by niche. For example, they may only work with members of the military or business owners, etc. Some advisors target by age demographics, choosing to work only with those who are near retirement.

Before you begin your search, you may want to pull together a portrait of your financial self, including annual salary, debts, assets, investments, insurance coverage, expenses, and so on. (There’s a free financial planning tool online to help you do this in about three minutes.) When you interview advisors, they’ll be interviewing you too—so have your answers ready.

2. Identify your needs

Not all advisors offer the same services, so get clear about what kind of help you need. “Holistic” advisors may do everything from monthly budgeting to debt management, investing, insurance policies, and more. There are advisors out there who will help your children apply for college scholarships and financial aid, and others who will help you find the best credit card rewards. Your advisor may prepare your tax returns, coordinate charitable giving, offer estate planning, and more. 

Put together a wish list for the ideal pro in your corner. You’ll likely meet advisors who don’t handle all of the services themselves, but many will be able to refer you to trusted professionals within their networks to meet your needs.

3. Search & list

Poke around RateMyAdvisor and make a list of advisors you’d like to meet. Keep in mind, many are prepared to work with clients virtually, so your search is not limited to your neighborhood. With Zoom, email, texting, etc., the in-office visit is becoming extinct.

Make your list longer than you anticipate needing in case your top picks aren’t accepting new clients. Believe it or not, advisors have capacity constraints and many will not be looking to grow their client bases. Others will only accept referrals from existing clients. Nonetheless, there are many more out there who will jump at the chance to work with you. They’re out there, and you will find them with some due diligence. 

4. Interviewing advisors

It’s time to make some calls. Many advisors will be happy to answer your questions on the spot, while others will schedule a follow-up meeting to get to know each other better. It’s common for advisors to offer a free consultation; why not take advantage of this in your search process?

Below, you will find a list of questions you may want to ask when choosing a pro to manage your financial life. This is not an exhaustive list and only you will know what matters to you.

  1. How do you get paid? 
  2. Do you have asset minimums?
  3. How often should I expect to speak with you? 
  4. What are your limitations in helping me?
  5. What differentiates you from other financial advisors?
  6. Who is your ideal client?
  7. Do you have a succession plan?
  8. How many clients do you serve?
  9. How can you save me money and time?
  10. What are your credentials? 
  11. Who holds you accountable?
  12. What is the size of your average client’s assets?
  13. What small changes can I make right away? 
  14. How much experience do you have? 
  15. What services do you offer?
  16. What’s your background?
  17. What’s your investment strategy?
  18. What is your investment philosophy?
  19. What are considered average returns? 
  20. Why did you get in the business?
  21. How similar are you to me? 
  22. How will you communicate with me? 
  23. What’s the largest client you ever lost and why? 
  24. What questions do you have about me & my family? 
  25. How will this relationship work? Next steps?

5. Discovery

When you find the advisor you are most comfortable with, there will likely be some homework for you to get them going—advisors call this “discovery.” Depending on the services they will perform, they will need things like bank statements, insurance policies, investment statements, etc. Your new advisor will make it as easy as possible for you to get them the access they need to hit the ground running.

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We hope you are able to build a long-term, trusted relationship with your financial advisor. Please return to RateMyAdvisor and leave a review to help others going through the search process. If you have feedback on candidates who didn’t make the cut, we want to hear that too. We aim to build an experience where everyone can make informed decisions. We’re stronger together. Cheers to your financial future!