Don't Hire a Financial Advisor Until You Ask This Question

Written by: Campfire Wealth | Time, Money, Health

---

Are you in search of a financial advisor?

Congratulations on taking the first step toward maximizing your financial life! We understand that finding the right advisor can be challenging, but it's essential to achieving your financial dreams and goals. Assuming that you've already determined that hiring an advisor is the right choice, let's ensure you partner with someone who can guide you to where you want to go.

Nowadays, most advisors offer "holistic planning," which includes:

• Investment advice

• Retirement planning

• Insurance needs

• Estate Planning (managed by an Estate Attorney)

• Tax Planning (managed by a CPA)

These are table stakes these days. Of course, reasonable fees and either a CFP designation or ample experience are non-negotiable.

If an advisor doesn't meet these criteria, it's best to avoid eye contact, keep your bag in the middle seat, and hope they don't ask if anyone is sitting there... So let's talk about how to move beyond finding just an "adequate" financial advisor.

What you should really be looking for in an Advisor

The number one, most important, must-have element in your financial plan is your goals. Not the advisor's goals for you.

Unfortunately, this is where many advisors fall short. They don't take the time to learn about you and your unique financial situation. They don't ask the right questions to understand your goals and dreams. Instead, they focus on selling you products or services that may not be in your best interest.

A truly impactful advisor will let you do most of the talking. They'll listen to your goals and dreams, and then work with you to create a financial plan that will help you achieve them. They'll be there to guide you along the way, and they'll be there to celebrate your successes.

So how do you avoid a cookie-cutter advisor?

Here are a few tips:

• Ask the right questions. When you are interviewing advisors, be sure to ask them about their process. How do they get to know their clients? How do they help their clients achieve their goals?

• Look for an advisor who has been on the other side of the table. This means that they have been a client of a financial advisor themselves. This experience will give them a deeper understanding of what it's like to be a client. It will also help them understand your needs.

• Find an advisor who understands your goals. This means that they are willing to take the time to learn about your unique financial situation and your dreams for the future. They should be able to create a financial plan that is tailored to your specific needs.

Don't settle for just any advisor. Find an advisor who will take the time to get to know you and your goals. Find an advisor who will work with you to create a financial plan that will help you achieve your dreams. Your financial future is too important to trust just anyone.

Don't Hire a Financial Advisor Until You Ask This Question

I came to financial advising as a career later in life. I'm an electrical engineer by degree (which coincidentally advisors tend to avoid because we ask too many questions!). But it gave my wife and I the benefit of being clients to a few financial advisors.

I have since worked alongside numerous advisors and the best ones have sat across the table from another advisor as a client. So - Don't Hire a Financial Advisor Until You Ask This Question - "Have you ever used a financial advisor for personal planning or do you use one now?" Having experience as a client is invaluable when it comes to:

• Helping you set relevant short AND long-term goals

• Understanding that making decisions detrimental to your financial success isn't intelligence based, it's rooted in humor behavior.

• Creating actionable plans and frameworks.

• Empathizing when you are struggling to take action or move forward.

Can you find an effective advisor that has never been in the client's shoes before? Of course, but you probably won't have a good feel for that until you've committed and worked with them on your initial plan.

A few last items to help in your Financial Advisor search

Here at Campfire Wealth, we do offer Financial Advisor Services and we DO NOT charge Assets Under Management (AUM) fees. We also make sure our advisors partner up to provide each other with personal financial advice. But if you're looking elsewhere here are a few more outside-the-box questions you could ask:

• Can they provide a sample financial plan similar to what they provide clients?

• How often should you expect to hear from them after onboarding is complete?

• What are a few of the advisor's goals?

• What are the reasons that clients typically leave their firm?

Don't feel uncomfortable asking hard questions! You're considering putting your financial future in their hands - make sure you evaluate them thoroughly.

Do you have questions that you'd recommend people ask a perspective advisor? Leave them in the comments below. And of course don't forget to sign up for our newsletter below if you'd like Life, Money, Health delivered to your inbox.