Financial Advisor Green Flags

February 6, 2020 / Eric Peterson /

Today’s Prep:

How do you know if you’ve found the right type of financial advisor? What is most important when looking for someone to work with who will create the right types of financial strategies for where you are in life?

Equipping Points:

We’ve all heard to look out for red flags–whether that be in relationships with a friend or partner or with a financial advisor. But what about the good things? What are “green flags” we should be looking for when it comes to working with a financial advisor?

Financial advisors work in the world of finances, but there are still specialists within the field. Eric breaks it out into two different life stages in order to find the right financial advisor.

When you are first getting into financial planning, you are more in the accumulation stage. You need more insurance, debt management, and maybe saving for college funding for your children. Maybe you have a young family to care for or maybe you are just saving for the future.

Once you hit a certain point in your financial journey, your focus shifts from accumulation more toward preservation and distribution. You want to know about income and tax reduction strategies. Your concerns change and you are thinking more about estate planning. The strategies are different, which is why you need to figure out what phase you are in to find the right financial advisor to work with. Eric and his team are best suited with clients in or near retirement.

Past finding the right type of advisor you need, what traits are important? Trust and sincerity are key to be able to build a rapport with the right advisor for you.

Listen to the full episode or click on the timestamps below to learn more about finding the green flags in a financial advisor.

0:47 – What do you want in a financial advisor?

1:16 – There are different types of advisors and what they do.

1:44 – When you are younger, you are in the accumulation stage.

2:34 – Then, you are looking at preservation and distribution and need an advisor to support you.

3:59 – You want to be able to trust your financial advisor.

6:13 – Sincere means “without wax” which is real.

Related Resources:

What Holds You Back From Breaking Up With A Financial Advisor?

7 Deadly Sins of Financial Planning

Can Financial Planning Be A DIY Job?

Today’s Takeaway:

[spp-tweet tweet= “When you’re looking at preservation and distribution, you’re looking at income planning, tax reduction strategies. You don’t want to take on the same amount of risk as when you were accumulating. –Eric Peterson“]