Choosing a Financial Advisor





When choosing a Financial Advisor, hire the services of one who has the Education:

Personal financial advisors are strongly preferred to have a college education. He/she may not have a specific field of study, but a bachelor's degree in accounting, finance, economics, business, mathematics, or law provides good background. Courses in taxes, investments, risk management, and estate planning also are helpful.

Also, mathematical, computer, analytical, and problem-solving skills are essential qualifications for personal financial advisors. Effective communication skills also are necessary, because these workers must present complex financial strategies and concepts in easy-to-understand language to clients and other professionals.

Maturity, self-confidence, and the ability to work independently are important as well. Financial advisors must be detail oriented, motivated to seek out obscure information, and familiar with the workings of the money markets, tax laws, and the economy, in general.
Although not required, certification can enhance one's professional standing. A license is not required to work as a personal financial advisor, but advisors who sell mutual funds, stocks, bonds, insurance, or real estate may need licenses to perform these additional services. Also, if legal advice is provided, a license to practice law is necessary. If your personal financial advisor does not offer these additional services, he/she may refer you to those who are qualified to provide them.

And, as far as the 'ignorant' in you is concerned, these are the things that you expect from your financial advisor.

-- now on to work:
  • Assess Your Financial Needs
    Personal financial advisors, also called financial planners or financial consultants, generally assess your financial needs, offering you a wide range of options.


  • Help in Your Investment Decisions
    Personal financial advisors provide you with analysis and guidance to your personal financial and business arrangements. They will also help you in your investment decisions.


  • Make Recommendations for You
    Financial advisers gather financial information, analyze it, and make recommendations to their clients.


  • Has Knowledge of Investments, Tax laws, and Insurance
    Independent financial advisors, use their knowledge of tax laws, investments, and insurance to recommend financial options to you in accordance with your short-term and long-term plans.


  • Addresses Issues and has Specializations
    Some of the issues that financial advisors address are retirement and estate planning, general investment options, even funding for your recreations. While most planners offer advice on a wide range of topics, some specialize in areas such as estate planning, retirement, insurance or risk management.


  • Answers Your Questions
    A large part of the success of your personal financial advisors depends on his ability to educate you about risks and various possible scenarios so that you don't harbor unrealistic expectations.
Are there changes in your benefit plans?
What are the consequences of changes in my job?

Your personal financial advisors should have ready answers to these questions.