The Process of Hiring a Financial Adviser (Made Simple)

Hiring a financial adviser can feel like a big decision. After all, you’re entrusting someone with your financial future.

But the process doesn’t have to be overwhelming. By breaking it down into clear steps, you can confidently find and hire the right adviser for your needs – and set yourself up for a smooth working relationship.

Here’s a simple summary of how the process of hiring a financial adviser works, from start to finish.

Step 1: Understand Your Needs

Before you start searching for an adviser, it’s important to know why you’re seeking one. Are you planning for retirement? Navigating a major life change like a divorce or inheritance? Or do you simply want to ensure your money is working as hard as it can?

Advisers come in different shapes and sizes, with unique specialties. Some focus on comprehensive financial planning, like Advance Capital Management, while others emphasize investments, tax strategies, or estate planning. Knowing what you want helps narrow your search.

Step 2: Research and Referrals

Once you know your goals, it’s time to start looking. Here are a couple of good places to begin:

• Referrals: Ask friends, family, or colleagues for recommendations, especially if they’ve had a positive experience with an adviser.
  
  
• Online Directories: Online referral networks or even a quick Google search can help you identify advisers in your area or ones who work virtually.

Look for credentials like CFP® (Certified Financial Planner) or CFA (Chartered Financial Analyst), which indicate rigorous training and a commitment to ethical standards.

Make your search easier by downloading our “Choosing a Financial Adviser” checklist. Use it to compare adviser services, fees and expertise.

Step 3: Narrow Down Your Options

With a list of candidates, start digging deeper. Visit their websites, read reviews and check their regulatory records through FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure. These tools let you confirm credentials and spot any red flags, like past client complaints or legal issues.

At this stage, pay attention to:

• Services Offered: Do they provide the help you need?
  
  
• Fee Structure: Are they fee-only (earning money solely from client fees) or commission-based (earning from selling products)? Fee-only advisers typically have fewer conflicts of interest.
  
  
• Fiduciary Duty: Look for advisers who operate as fiduciaries, meaning they are legally obligated to act in your best interest, not their own.
  
  
• Philosophy: Do their investment or planning approaches align with your values and goals?

Step 4: Set Up Initial Consultations

Some advisers offer a free initial meeting, either in person or virtually. This is your chance to get to know them and see if the relationship feels like a good fit.

Come prepared with questions, such as:

• What is your approach to financial planning?
• Who are your typical clients?
• How do you charge for your services, and what can I expect to pay annually?
• How often will we meet, and what’s the best way to reach you?
• Can you provide examples of how you’ve helped someone like me?

Trust your instincts during this meeting. The adviser should listen carefully, explain things clearly, and make you feel comfortable. If you feel rushed, confused or pressured, keep looking.

Step 5: Compare Options and Make Your Decision

After meeting with a few advisers, take some time to compare them. Ask yourself:

• Who best understood my financial goals?
• Which adviser’s communication style felt the most natural?
• Whose fee structure aligns with my budget and expectations?

It’s okay to take your time with this step. Your adviser will play a key role in your financial life, so it’s important to feel confident in your choice.

Step 6: Start the Onboarding Process

Once you’ve chosen an adviser, the onboarding process begins. Here’s what to expect:

Paperwork

You’ll likely sign an engagement letter outlining the scope of their services, fees and responsibilities. They may also request access to your financial documents – like tax returns, account statements and insurance policies – to create a clear picture of your finances.

Plan and Portfolio Creation

After gathering all the necessary information, your adviser will develop a personalized financial plan and investment strategy tailored to your goals. This step includes setting up your accounts based on your agreed-upon strategy and, if needed, reallocating your existing assets to align with the new plan.

The adviser will guide you through this process, explaining any changes and ensuring your portfolio is structured to meet your objectives. They will also handle the logistics of moving funds or transferring accounts to streamline the transition.

Step 7: Build a Long-Term Relationship

Hiring a financial adviser isn’t a one-time event – it’s the start of an ongoing relationship. Here’s how to make the most of it:

• Stay Engaged: Regular check-ins (usually annual or quarterly) ensure your plan stays on track.
  
  
• Communicate Changes: Life happens – marriages, new jobs, health issues. Let your adviser know about any big changes so they can adjust your plan.
  
  
• Ask Questions: Don’t hesitate to reach out if you don’t understand something or need clarification. A good adviser welcomes your questions.

The Bottom Line

Hiring a financial adviser doesn’t have to be complicated. By understanding your needs, doing your research and taking the time to find the right fit, you can feel confident about the person helping guide your financial journey.

Remember: A great adviser is more than just a numbers person. They’re a partner who helps you navigate life’s twists and turns while staying focused on your goals. Take your time, ask questions and trust the process – you’ll thank yourself later.

Since you’re here, if you’d like to see how Advance Capital Management stacks up, take a couple of minutes to explore our process.

Or, better yet, click here to schedule a free financial consultation with one of our financial advisers today.