Have you ever had a financial advisor? Here’s a guide on how to determine if you’re consulting the right professional.

When it comes to finding the right financial advisor for your business, the first step is to make sure you know what services you’ll need. While it may sound obvious, it’s important to ensure that you have your financial priorities in order and know what kind of advice you require.

Create a brief list of your financial goals and have it ready when you meet with your advisor.

Secondly, make sure you understand how much they will charge for their services and the frequency of charges.

Some financial advisors charge a percentage of your assets under management, while others have a fixed fee or charge by the hour.

The importance of knowing this in advance is related to transparency: if you’re about to meet with an advisor who is unwilling to clearly explain their compensation structure, be cautious.

During your meeting, don’t hold back on asking questions. Think of the meeting as a job interview and pay close attention to the answers provided by the advisor.

One important question, which helps in clarifying the relationship and managing expectations, is how they handle client communication frequency.

Coming prepared with some key questions can save you time and money. Here are some questions to ask a financial advisor:

• How long have you been working as a financial advisor?
• What is your area of expertise? Do you specialize in a specific area of finance, such as investments or tax planning?
• Are you fee-only, fee-based, or commission-based?
• How much do you charge for your services?
• What is your investment philosophy?
• How often do you communicate with clients?
• How is progress toward financial goals tracked and measured?

If all goes well, you’ll be entrusting this person with all your intimate financial details, so it’s essential to find someone with a personality you like and in whom you have confidence.

Another factor to consider is to ensure that your advisors and financial planners work in your best interest, not for an insurance company or a bank. Don’t settle for the first name that appears on Google.

If you’re indifferent to the physical location of your advisor, many professionals offer virtual services through Zoom, email, or phone. Most advisors will indicate if they offer virtual services on their website or in online directories.

If you are in New Jersey, our Blue Collar Back Office team would be delighted to meet with you and address all your concerns. Even if you are not close by, you can still be a part of our client portfolio, and we can work closely together without distance being an issue.