Tuesday, July 16, 2024
HomeFinanceFactors to Consider When Selecting a Financial Advisor

Factors to Consider When Selecting a Financial Advisor

There is a difference between hiring a suitable financial advisor and a fiduciary standard financial advisor. Suitable financial advisors are governed by the rules set by the Financial Industry Regulatory Authority (FINRA).

On the other hand, fiduciary standard advisors follow the regulations set by the Securities and Exchange Commission (SEC).

If you want your money to be put in the right investment and planned excellently, consider a financial advisor with the fiduciary standard. Here are some factors to consider when selecting the best financial advisor.

Fiduciary Standard

The most important quality of an advisor you should look out for is the care he has for your money. While some advise you to invest in a particular company so they can get a paycheck, others are interested in the lasting effect.

In other words, consider a financial advisor who discloses every detail of investment without having a conflict of interest.


Most financial advisors join together to form a firm. Every person within the firm has a different skill. Each of the financial advisors should be eligible to answer your questions and act in your best interest (fiduciary standard.)


If you want to find a financial advisor in the Bay Area, search for one according to location and credentials. Credentials include CPA, CFP CFA, and more. Finding out if the firm professionals hold the right credentials assures you of quality work.

Fitness to the Job

Transferring duties from one financial planner to the other will be disrupting your finances. Therefore, it’s essential to choose the right firm from the start. Consider your relationship with the financial planner and decide whether they are the right choice for you. You should be able to express what needs to be done with the advisor freely.


How much will you be paying for the services? When you hire a financial planner, you hope he manages your money to ensure profit, and not throw you into loss with his fees. You don’t want to pay money to someone who might end up costing you money. Moreover, doing it yourself could also have its ups and downs, especially when you don’t know how it all works.

Financial planning does come with a price, and your financial advisor should be transparent about it. He should file every amount he invested, the expected returns, and the costs that are charged but not shown on paper too.

The Performance Report

How often will the financial advisor file a performance report? The firm should track the progress of your money and file reports according to the agreement. You can agree to receive reports quarterly or annually. Also, the firm should provide a session where you can access your investment portfolio.

Provision of Custodian

Suppose you find a financial advisor in the Bay Area, who will be your custodian. A custodian is someone who has access to your assets and finances and gives you a report separately from the advisor. You can compare the two reports and find out whether there is any fraud.

Entrusting money with a firm that doesn’t have a custodian pokes a hole for the firm to defraud you. You built your wealth over a long time, so don’t throw it away to a sub-par financial advisor.

Consider the qualities you want in a financial advisor and ensure the one you take on board is a qualified advisor who ticks all the boxes.

More from MoneyVisual

Recent Posts

Most Popular

Educational Topics