Hiring a Financial Advisor: How to Find the Right Fit for You
By Brittany Brinckerhoff
Financial advisors provide financial advice – straightforward, right? Unfortunately, it’s not that simple. For every advisor you might hire, there are almost as many ways to deliver financial planning and charge for it.
Advisors vary on:
Service. Many different financial professionals call themselves “financial advisors” – from stockbrokers and insurance salesmen to investment advisors and holistic financial planners – so you might receive a vastly different service experience depending on who you work with. Some advisors specialize in giving advice on really specific topics, while some are more general and big-picture.
How they’re paid. Some are paid by the hour, some charge a periodic subscription-style fee, some bill a percentage of the investments they’re managing, some earn commission from selling products, and many do a combo of these.
Who they work with. Some advisors work only with people who already have a certain amount of money, while other advisors have no minimum.
There’s no one right or wrong way to approach financial advising, but given the plethora of options it’s not surprising that only 35%* of Americans work with a financial advisor – it’s so hard to know when and where to start!
Step 1: Deciding that it’s time to work with a financial advisor
At Hilltop, we believe that you don’t need significant wealth in order to work with a financial advisor. Instead, we think it is beneficial to begin the financial planning and investment management process earlier on to help build good financial habits and proactively look for planning opportunities. Regardless of your net worth, income, or life stage, there are many scenarios where it’s smart to work with an advisor. Some examples:
You’re in the midst of a major life change – such as marriage, a new baby, death of a loved one, divorce, etc. (Admittedly it is difficult to start working with a new advisor while facing one of these all-consuming transitions, so plan ahead if you can.)
You’re really busy and you want to spend your free time on your own passions, not managing your finances.
You believe you have too much of your savings in cash, or you’re not certain what to do with your investments.
You have numerous financial goals and you’re not sure which to prioritize.
You work with numerous professionals (CPA, estate attorney, etc.) and want help coordinating your finances.
If you can relate to any of these situations, now might be the perfect time to start your search.
Step 2: Finding the right type of advisor to fit your needs
There are many different ways to begin your search for a financial advisor: you can ask friends, family, or other financial professionals for a referral; you can use a find-an-advisor website, you can just search on Google, etc. You’ll find that there are lots of options out there, so it’s important to understand the differences and decide what is important to you.
At Hilltop, we are proud to be fee-only advisors – we don’t sell any products or earn any commissions. We offer holistic financial planning and investment management, and our clients pay us either a flat quarterly fee or a percentage of the investments we manage, or a combination.
All the advisors on our team are Certified Financial Planner™ professionals, meaning we have each fulfilled an education requirement AND passed a rigorous exam (hardest test I’ve ever taken!). As CFP® practitioners, we have annual continuing education requirements, so we are constantly learning. Perhaps most importantly, we are fiduciaries – any time we provide a recommendation, it’s truly because we think it is in your best interest. We may be biased, but we think these are all important qualities to look for in a financial advisor.
There are many reasons why you might want to work with a financial advisor, but at Hilltop our goal is to help you organize your finances, get more clarity around your financial goals, and ultimately provide you with a sense of confidence as you’re making financial decisions – all while living your best life. To better align our services with your specific needs, we offer two different service models:
Wealth Management for those who have already accumulated wealth
Ascend for those who are just getting started (aka HENRY – High Earner, Not Rich Yet)
Please check out our website to learn more or to contact us with any questions!
*https://news.northwesternmutual.com/2022-07-27-The-Majority-of-Americans-Say-Their-Financial-Planning-Needs-Improvement,-But-Only-a-Third-Seek-Professional-Help
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.