Tips for finding the perfect financial advisor to grow and manage your money

Securing the bag is not just about winning big bucks. It’s also about being smart and managing your funds well with the goal of building for the long term and generational wealth. One of the best ways to grow and manage your accounts is with a financial advisor, and it’s never too late to add one to your life.

A recent study conducted by Northwestern Mutual found that 62% of American adults agreed that their financial planning skills needed help. Moreover, only 35% of adults actually use the help of financial advisors.

As more black and brown households seek to create and enrich themselves, here are some tips to help you find the perfect financial advisor for you and your family’s money.

Find out their credentials

You wouldn’t necessarily trust someone without a medical degree or license to operate on you, so the same standard should apply to whoever you trust with your finances. Asking, knowing, and understanding a potential financial advisor’s education and credentials should be high on your list when considering options. Look for those who are CPA or CFP certified to ensure you are heading in the right direction.

Ask how the advisor will be paid

Each advisor or company may have different rules, but at the end of the day, they all get paid. Brian Walsh, CFP, senior director of financial planning at SoFi, a personal finance company, says you should ask the following questions of a potential financial advisor: “Do you earn a commission on insurance sales? Do you earn a commission on stock trades? Are you affiliated with a financial company that offers proprietary products? »

Often, salespeople pose as an advisor in an effort to sell their company’s financial products and services to you, rather than working directly with you. You will also want to look for someone who works as a paid advisor.

“A commission based on a percentage of assets under management is a safe arrangement. As client assets increase, advisor fees increase,” said Brooks Campany, regional manager at Argent Trust Company in Oxford, Mississippi.

Find someone who will act as a fiduciary and keep you on track

The rule of thumb for finding the perfect match is whether the advisor will fight for you, not only as your advocate, but also when it comes to making sure you stay on track to achieve your goals.

“You shouldn’t invest with an advisor who isn’t investing in their education. It has to be about you first,” says Ed Slott, CPA and founder of

While a good advisor will certainly provide sound advice on managing and growing your money, a great advisor will also work to keep you motivated to achieve the goals you’ve all been discussing. For example, if you hear about a potentially lucrative market trend, a great advisor will first calm you down and help you weigh the pros and cons of that trend, instead of pushing you to remain blind to the potential return. what she could bring. .

“In times of market volatility, your advisor should be a constant voice of reason, helping you avoid emotional decisions that could lead to costly mistakes,” says Sue Christoph, partner at RMB Capital in Chicago.

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