Hiring a financial advisor is a valuable investment, but it is often overlooked.
The economy is a wavering entity.
Things change all the time and it can be difficult to keep up with it all in addition to your, no doubt, demanding daily life.
So, why not let trained financial advisors provide you with professional advice on how to make the most of your hard-earned assets? The Financial Planning Standards Council (FPSC) strives to ensure that professional standards are followed and Canadians are well-served by top financial planning institutions and their advisors.
However, by law there are no minimum education or experience requirements in order for someone to claim the title of financial advisor.
So, it is extremely important that you do the necessary background work to avoid swindlers and find a trustworthy, sound investor to handle your account.
Here is a five step guide to finding a financial advisor for residents of the Ottawa, Ontario, Canada area.
Step 1.
Create a list of at least three financial planners to be considered.
Obtain recommendations from friends and family members and perform a simple internet search to find some reputable national organizations.
See what credentials are required of each institution's advisors and make sure that they must pass quality examinations before they are hired.
Step 2.
Now that you know that the institutions you are considering are up to snuff, it is time to do some credential screening of the individual advisors.
Make sure they have the proper accreditations and licensing.
Also, try to find someone who is broadly educated over an array of financial issues.
Ask the planners about the circumstances surrounding their typical clients in an attempt to find someone who has dealt with people similar to you.
Step 3.
Find out what type of payment arrangement the advisor operates under.
Some are fee-only which means that they simply charge a periodic fee.
The fee may be either a fixed amount or a percentage of the value of your assets that are under their management.
Others may receive commissions for selling particular investments to you.
This may pose the threat of a conflict of interest and should be approached with extreme caution.
Step 4.
Personally interview the prospects and obtain both professional references and current client references.
Ask as many questions as you can think of, no matter how insignificant they may seem, and make sure that you are comfortably satisfied with the answers given.
After all, you have a lot at stake and your peace of mind is essential to finding the right adviser for you.
Step 5.
Pay attention to the questions and concerns expressed by the adviser during each interview.
He or she should be interested in several aspects of your life and personality.
He or she should want to know things about you like what you expect to receive by using his or her services, your goals and future plans for your investments, and your level of open-mindedness toward risk.
Be wary of any planner who only seems interested in your assets or making a sale.