How Do You Pick A Financial Advisor?

November 23, 2021 / Eric Peterson /

Today’s Prep:

Maybe you know you want to work with a financial advisor but don’t know how to determine which one is best for you. Where do you start? What should you look for?

Equipping Points:

How can you tell if you have a financial advisor is the right fit for you? You might start by asking how they are getting paid. Sometimes those costs are not disclosed or advisors are compensated in different ways.

Commission-based transactions used to be more common but now fee-based structures are becoming more typical. Fees can be charged for the planning that you do. Paying fees, paying commissions, is not an issue if you understand it, and you’re getting value for what you’re paying. Advisors should get paid, but you should feel confident in what you’re paying and what you’re getting out of it.

You may wonder where to go: to a big-name firm or a small local firm. Eric explains that sometimes a smaller firm is with a larger financial institution on the backend. Peterson Financial Group is with one of the largest financial institutions in the world with Fidelity. That way you get the personalized service with a tremendous amount of value.

As you work with a financial advisor, you want to be able to trust them, but you also want to ask questions. It’s your money, so you should feel confident in what’s happening with it. Remember though that it’s more than just about creating a financial income. The advisor you work with is someone who can help you create a plan. Eric has an MBA but is constantly educating himself to stay on the cutting edge in order to better serve his clients. The power is in the planning.

Listen to the entire episode or skip ahead using the timestamps below.

0:47 – How do you know when picking an advisor if it’s the right fit?

3:31 – Big name is not always better.

5:52 – Ask for clarification.

7:51 – It’s not just about the financial income.