Determine Your Needs
Before searching for an advisor, clarify what you need help with. Are you looking for comprehensive financial planning, investment management, retirement planning, tax advice, or a specific issue like stock options? Your needs will determine what type of advisor is best for you.
Understand Advisor Types and Credentials
Look for meaningful credentials like CFP® (comprehensive planning), CPA (tax expertise), CFA® (investment analysis), or specialized designations. Understand the difference between fiduciaries and non-fiduciaries. Consider whether you want fee-only, fee-based, or commission-based compensation.
Evaluate Potential Advisors
Review their background on BrokerCheck (FINRA) and IAPD (SEC). Read their Form ADV Part 2 disclosure document. Ask about their typical client and areas of expertise. Inquire about their investment philosophy. Understand all fees and how they're compensated.
Questions to Ask in Initial Meetings
Are you a fiduciary at all times? How are you compensated? What is your investment philosophy? What services do you provide? Who is your typical client? How often will we communicate? Will I work directly with you or others at the firm?
Red Flags to Watch For
Promises of guaranteed returns. Unwillingness to explain fees or compensation. Pressure to make quick decisions. Recommendations without understanding your situation. Lack of proper credentials or licensing. Unable or unwilling to provide references.