7 Important Steps to Finding the Right Financial Adviser for You
Make sure you're working with financial professionals who understand your ultimate goals and know how to get you there in the most efficient way possible
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Imagine reading a good book. You invest time and emotion into the book wondering how it will turn out. There are ups and downs along the way, but you remain hopeful based upon some authorial promises that all will turn out well for the protagonist. Near the end, though, you get this feeling the author will have to "pull a rabbit out of his hat" to make everything work out.
If this is the book of your financial life, don't read to the end only to find it terribly disappointing. Instead, find a financial adviser who knows the ending you long for and can help you write the story you want to live.
Below are seven steps to confirm you are with the right adviser or lead you to a new one who is right for you.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Make Sure Your Priorities Are Aligned
When preparing for retirement, you and your financial adviser should be on the same page. Search for trustworthy, experienced and credentialed professionals who focus on providing strategies and services that may help you become more confident in your retirement income planning. The right professionals can provide the guidance and solid, objective judgment needed to help you achieve your financial goals.
2. Ask Questions
With an abundance of financial vehicles available, each boasting different features, don't be afraid to investigate and ask difficult questions. Seek to understand the details, benefits and restrictions for all of your options, and decide whether they are acceptable to you. When considering the financing of your future, there is no such thing as having too much information.
3. Understand the Fees You Are Paying
As a consumer, you deserve to understand how your financial adviser is compensated as well as any associated costs and fees. Regardless of which financial vehicle you choose, you pay fees one way or another. However, you may be able to lower fees through a variety of methods. Before you do anything, know what you are currently paying!
An investment fee analysis can show you precisely how much you're currently spending in annual fees on your portfolio.
4. Approach Online Resources With Caution
The internet contains a wealth of information—but is it credible? It depends. Evaluate credibility by reading the site's "About Us" page and looking at the page's URL. If it ends in .org or .edu—extensions used by nonprofit organizations and educational institutions—it might be considered more reputable than others.
But remember, nothing can replace the value of a team of trustworthy, experienced professionals recognized for their work in financial services and specifically in retirement income planning.
5. Study Their Education
To help you assess just how well-versed your potential financial professional team is, ask how they invest in their education. Beware of financial professionals who simply pass an exam to earn a designation and never commit to ongoing education beyond that point. Consider a financial professional who regularly engages in industry-specific training and takes courses to stay current on financial products and strategies designed for today's fast-paced and volatile income world.
6. Look for Experience
Of course, no single person can know everything, so it's important to have a well-organized team of professionals help you plan for retirement. Your team might include a CPA or qualified tax professional, an estate planning attorney, a Registered Investment Adviser or Investment Adviser Representative and a licensed insurance agent.
You should also check whether each person has experience in income planning for retirees and pre-retirees. A financial strategy for the asset accumulation phase is very different from planning for lifelong retirement income. Once you're near retirement, it isn't a bad idea to make sure your adviser focuses on retirement income planning.
7. Get a Second Opinion
If you have any concerns about your current financial professional or insurance agent—and his or her advice—look for other options. Even if you've worked with these people for years, they may not be experienced specifically in creating tax-efficient retirement income plans that use the least amount of your savings to produce the optimal amount of lifetime income.
Your financial adviser should be committed to the financial success and confidence of each and every client served and should help you feel confident about your future.
Robert E. Grace, insurance professional, author and Fox News radio host, has more than 45 years of experience with his firm providing estate, retirement and tax planning for individuals and companies.
Grace Tax Advisory Group, LLC, is an independent financial services firm, helping individuals create retirement strategies using a variety of investment and insurance products. Investment Advisory Services offered through Grace Capital Management Group LLC, a Registered Investment Advisor.
Steve Post contributed to this article.
-
5 Vince Lombardi Quotes Retirees Should Live ByThe iconic football coach's philosophy can help retirees win at the game of life.
-
The $200,000 Olympic 'Pension' is a Retirement Game-Changer for Team USAThe donation by financier Ross Stevens is meant to be a "retirement program" for Team USA Olympic and Paralympic athletes.
-
10 Cheapest Places to Live in ColoradoProperty Tax Looking for a cozy cabin near the slopes? These Colorado counties combine reasonable house prices with the state's lowest property tax bills.
-
Don't Bury Your Kids in Taxes: How to Position Your Investments to Help Create More Wealth for ThemTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Are You 'Too Old' to Benefit From an Annuity?Probably not, even if you're in your 70s or 80s, but it depends on your circumstances and the kind of annuity you're considering.
-
In Your 50s and Seeing Retirement in the Distance? What You Do Now Can Make a Significant ImpactThis is the perfect time to assess whether your retirement planning is on track and determine what steps you need to take if it's not.
-
Your Retirement Isn't Set in Stone, But It Can Be a Work of ArtSetting and forgetting your retirement plan will make it hard to cope with life's challenges. Instead, consider redrawing and refining your plan as you go.
-
The Bear Market Protocol: 3 Strategies to Consider in a Down MarketThe Bear Market Protocol: 3 Strategies for a Down Market From buying the dip to strategic Roth conversions, there are several ways to use a bear market to your advantage — once you get over the fear factor.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
