{"id":3265,"date":"2025-06-17T06:00:00","date_gmt":"2025-06-17T13:00:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/?p=3265"},"modified":"2025-07-17T07:30:21","modified_gmt":"2025-07-17T14:30:21","slug":"hiring-a-financial-advisor","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/hiring-a-financial-advisor\/","title":{"rendered":"If You\u2019re Hiring a Financial Advisor, There Are 4 Main Things You Need to Know"},"content":{"rendered":"\n

Hiring a financial advisor is a smart idea. The right advisor has the experience, wisdom, and discipline to help you reach your goals and create the life you want and deserve. However, selecting an advisor to work with is not a decision that should be taken lightly.<\/p>\n\n\n\n

No matter where you live or what stage you\u2019re at in life, you have many choices when it comes to who you hire. Prospective advisors vary widely in their scale of services, products, licensing, specialized training, and overall professionalism.<\/p>\n\n\n\n

We\u2019re committed to changing what people expect from a financial advisor.<\/p>\n\n\n\n

All of this can make it difficult to find a great right advisor. However, with the right knowledge\u2014and we\u2019ll walk you through the basics of what you need to know here\u2014you can find an advisor with policies, procedures, and planned services in place to support you. <\/p>\n\n\n\n

And, most importantly, you can find someone who goes beyond advising to advocacy, and in doing so, shows you that you and your success are of the utmost importance to them.<\/p>\n\n\n\n

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See how Quicken helps your financial advisor see the whole picture.
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#1: What are the 5 minimum standards for hiring a financial advisor?<\/h2>\n\n\n\n

The first step to finding a great financial advisor\u2014a financial advocate <\/em>\u2014is to get a sense of who is worth your consideration in the first place. With over 275,000 personal financial advisors in the United States, being able to narrow your search down in a meaningful way is crucial.<\/p>\n\n\n\n

Begin your process of searching for prospective advisors (or advisor teams) in terms of five minimum standards. First, their education. They should be an expert, and the best way they can demonstrate that is with a CERTIFIED FINANCIAL PLANNER\u2122 designation.<\/p>\n\n\n\n

Second, they should be able to pass a background check. Specifically, they should be listed on the US Securities and Exchange Commission website and the Financial Industry Regulatory Authority\u00ae website.<\/p>\n\n\n\n

Third, they should offer minimal basic planning. Fourth, their practice profile should fit your needs. In other words, if they are a solo advisor, ask yourself if they can offer you competitive services compared to a team. If they are an advisor team, think about whether they are a collaborative, strategically built, multigenerational team of specialists. If they aren\u2019t, this could be a red flag.<\/p>\n\n\n\n

Finally, look at how they get paid. While there\u2019s no one right way for them to do it, it\u2019s important that how they are paid is entirely transparent and aligned with your goals. And remember, it\u2019s important to consider all <\/em>of these standards. <\/p>\n\n\n\n

#2: How can I make sure I’ll be comfortable with a new financial advisor?<\/h2>\n\n\n\n

Once you\u2019ve sorted your prospects based on the five minimum standards, it\u2019s time to take the next step: interviewing. As you go into the interview process, bear in mind that it\u2019s a two-way process. In other words, not only is the client interviewing the advisor, but the advisor should also be considering whether they\u2019re the right fit for the client.<\/p>\n\n\n\n

Far too often, advisors ask clients to bring a lot of things to the first meeting, including financial statements or paperwork for them to review. This could be another red flag.<\/p>\n\n\n\n

Think about it. You haven\u2019t even hired them yet, and you don\u2019t yet know if you\u2019ll feel comfortable with them or if you\u2019re going to move forward. The interview should focus on answering these questions, so you shouldn\u2019t need to bring anything other than a list of questions to ask them.<\/p>\n\n\n\n

The financial services industry can be very sales-driven, and some approach the initial interview as an opportunity to sell somebody something. However, this early in the process, an advisor has no way of knowing what you need and no way of knowing which of their products and services will actually help you. The best advisors recognize this and view the initial meeting as an opportunity to actively listen to you and figure out what you need and want.<\/p>\n\n\n\n

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See how Quicken can help keep your plan on track.
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#3: How will I know if my financial advisor really puts their clients first?<\/h2>\n\n\n\n

While you should absolutely discuss the advisor\u2019s various processes and services during the interview, it\u2019s important to go beyond those kinds of questions and ask about how their team is structured. Far too often, advisor teams are \u201cadvisor-centric,\u201d but you should look for a \u201cclient-centric\u201d team.<\/p>\n\n\n\n

Advisor-centric teams are simply a group of individuals sharing office space and staff so that when they\u2019re on vacation, there\u2019s somebody to answer the phone. That\u2019s not likely what you want. You want a team where each person is there to serve your <\/em>needs, not the lead advisor\u2019s needs.<\/p>\n\n\n\n

To help you determine whether they are client-centric or advisor-centric, ask them targeted questions:
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