Does Your Financial Adviser Possess These 5 Must-Have Qualities?

Finding the right financial adviser is not a decision to be taken lightly. The one you choose to hire can determine your future financial health and shape your current lifestyle. You know you’ve found a good one if he or she makes an honest assessment of your true financial standing before offering solutions. They also look at the bigger picture and refrain from pushing a financial product solely for the fat commissions they’ll get from the transaction.

Those are some of the traits you should look for when scouting around for a financial adviser. Here are a few more qualities to watch out for before putting your finances – and your quality of life – in their hands:

1. Qualifications

Expertise is, of course, a given. You should find someone with the right credentials and qualifications. Look for financial advisers who have passed rigorous certification exams and who have fulfilled all the requirements needed to achieve a particular designation. Having said that, don’t be swayed solely by the number of accreditations they have, but by the type of credentials they possess. Find a professional who specializes on financial goals you’d like to focus on, like securities trading or financial planning. An expert who’s had years of experience with a specific financial product or area of expertise can give you a wealth of hard-earned lessons and advice that will benefit you in the long run.

2. Integrity

Find an adviser who strictly adheres to fiduciary standards. Do a background check, and make every effort to ensure that he or she has a clean track record. Nowadays, it’s easy to find this information online by scouring databases, but you can also find out about a person’s reputation by simply asking their former clients or people they’ve worked with. The ideal candidate should also put your financial needs above all else. Sadly, some unscrupulous advisers prioritize their own commissions at the expense of a client’s needs. They do this by product pushing, or by recommending that you stop your current insurance policy in favor of another.

3. Personality

Most of us don’t put as much weight to personality as much as we do with credentials. But you shouldn’t discount the importance of personal rapport when choosing a financial adviser. He or she is someone you’ll be working with for quite sometime, so having a good working relationship is key. Simply put, if the relationship doesn’t “feel” right, trust your gut. Find someone you’re compatible with. This ensures that you’ll have smooth sailing transactions in the years to come. As finance guru Suze Orman said, “if you don’t understand or innately trust the person, don’t hesitate to move on.”

4. Members of Professional Associations or Groups

This is a good indication that a financial adviser values continuous training and adheres to industry standards. Professional associations provide countless opportunities for them to stay on top of their game and develop their skills. If someone takes the time and effort to learn the latest trends in their industry, then you’re sure to benefit by getting fresh insights on a regular basis.

5. Fee structure

Find out how your advisor will be paid, because it will affect the quality of their service. There are usually two types of fee structures: commission basis and fee-basis. Those paid on a commission basis must adhere to suitability standard requirements. According to Kelly Campbell, founder of Campbell Wealth Management, this means that they “must reasonably believe any recommendations made are suitable in terms of the client’s financial needs, objectives and unique circumstances”. On the other hand, those paid on a per fee basis must comply with a strict fiduciary standard and are required to put client’s interests before their own.

These are some of the traits you should look before you settle for any financial adviser or team. Additionally, accounting outsourcing is an option you can go for to ensure that you’re working with a team of experts who have all the qualifications you require to get your finances and accounting needs in order.

Whether you choose to go with a certain financial expert or hire the services of an accounting outsourcing company, always do your due diligence. Here’s another Suze Orman truism to think about: “Remember that what happens to your money affects your quality of life, not your adviser’s”.