A normal person’s guide to choosing a financial planner

A financial advisor is someone you are trusting with your money, one of the most stressful things in American society; no big deal, right?

Listen, you're a smart cookie - you've figured out life in so many ways! But sometimes, this whole money thing feels like a whole new language. If that sounds about right, then this guide is for you, the awesomely capable person who just wants some clear, friendly advice on finding a financial advisor who respects your intelligence and works with you, not over you.

We're going to ditch the jargon and cut through the confusion to help you find someone who feels more like a financial cheerleader than a mystery professor. Let's get you feeling confident about your money game!

QUALITIES

Alright, so finding a financial advisor isn't just about who has the fanciest office, or car, or fanciest anything (… and maybe it’s actually better to hire an advisor that drives a used Honda vs. a Ferrari; you’re the one paying their fees.)

Here are some key qualities to look for in your financial BFF:

1. They speak your language (but the cool kind). Sure, they might know a thing or two about stocks and bonds, but can they explain it like you're having coffee with a friend? You want someone who can ditch the jargon and help you actually understand this whole money thing.
2. They listen way more than they talk. A good advisor is all about YOU and your goals. They should ask lots of questions about your dreams (think: early retirement on a beach vs. owning your own bakery) and then tailor their advice to fit your unique situation.
3. They're on Team You, not Team Themselves. This isn't about pushing fancy products or making the advisor rich quick. You want someone who has your best interests at heart and is transparent about any potential conflicts of interest.
4. They're a cheerleader, not a drill sergeant. Financial stuff can be stressful, but your advisor should be there to pump you up and celebrate your wins, big or small. Think positive vibes and high fives, not lectures and shame spirals.
5. They're like a good pair of jeans: comfortable and dependable. You want to feel confident that your advisor is experienced and qualified, but also someone you feel relaxed and comfortable talking to. After all, you're going to be chatting about money for a while, so find someone you actually enjoy talking to!

Remember, this is about finding someone who feels like a partner, not a stranger in a suit. Don't settle for anything less than an advisor who's as awesome as you are!

Questions to ask them and to make you feel as smart as you actually are

Alright, so we talked about finding a financial advisor who's like your financial BFF, but now comes the tricky part: actually asking them questions! Don't worry, this isn't a pop quiz. These are just some good conversation starters to get you on the same page:

1. What's your money style? Just like you wouldn't wear pajamas to a fancy party (typically), there are different ways to handle your money. Ask your advisor how they approach investing and if it vibes with your comfort level.
2. How do you charge? Transparency is key in any friendship, financial or otherwise! Find out how your advisor gets paid and make sure it's clear and fair. No hidden fees allowed!
3. What's the plan, Stan? You should always know what your advisor's strategy is for your money. Ask them to walk you through their recommendations and how they'll help you reach your goals (think: dream vacation house vs. comfy retirement).
4. How comprehensive are the plans? Ask specific questions about your situation: will they review your tax situation, help you with accounts outside of your accounts held with them, or as you have random questions that pop up?
5. Why did you choose this firm (and how does that benefit me as a client)? There are many different types of advisory firms, so you can learn a lot about the advisor what they value most; working solo or as a team, access to specific resources, if they are independent or part of a larger organization, or something else.
6. What’s your favorite part of being an advisor? This is a great way to figure out what’s the motivation behind helping you and others with their money.
7. How do you invest your own accounts? Is that similar to your clients? Note, the answer for this is that it should be similar (ever hear the saying “eat your own cooking?”). There will likely be some differences because their financial goals are likely different than yours, but the fundamental investment selection and financial planning process should be similar.
8. If you had enough money to not work, would you still be an advisor? This is a weird question, yes, but advising is a job many people can do into their 70’s or later. This is a good way to sniff out the driver on why someone is doing this line of work (for the pure reason of wanting to help people with their money, or for the paycheck).
9. Talk to me in human! Financial advisors can love their fancy terms, but you deserve to understand what they're saying. Don't be afraid to ask them to explain things in plain English. If they get frustrated, that might be a red flag.
10. How often do we chat? Just like any good friend, you want to check in with your advisor regularly. Ask how often they recommend catching up and how you can reach them in between.

Remember, this is YOUR money, and you deserve to feel good about it. Don't be afraid to ask questions and find an advisor who feels more like a teammate than a talking textbook!

QUALIFICATIONS

Now this is where things get a little fancy. Financial advisors can have a whole alphabet soup of letters after their names, which can feel super confusing (think: CFP, CFA, CFT-I, CDFA – seriously, who even came up with these?). But don't worry, you don't need a decoder ring to figure it out.

These credentials basically show what kind of training and experience your advisor has. It’s most important to ask your potential advisor what qualifications they have to be helping you with your money, and if their other clients have a similar profile to you (so they know how to handle your money well). It’s also important to ask them which professional associations they are part of and how they stay up to date on changes in the financial world (tax changes, legislative updates, and so forth).

Here are a few of the big ones to keep an eye out for (and we've got a handy dandy link at the bottom to explain them all in more detail if you're curious for a deeper dive [link to article about financial advisor credentials]):

• CFP® (Certified Financial Planner): These folks are the financial planning all-stars. They can help with everything from budgeting to retirement planning. This is often the “gold standard” credential when looking for a financial planner.
• CFA (Chartered Financial Analyst): Think investment whizzes! They're all about analyzing stocks, bonds, and other investments.
• CFT-I (Certified Financial Therapist): These advisors are all-around players, with a strong emphasis on seeing you as a human in your financial journey, and helping you identify and unblock things you’re doing that may be harming your financial plan.
• CDFA (Certified Divorce Financial Analyst): These are the folks you want in your corner if you are getting into a divorce situation.
  Remember, these credentials are great, but they're not the only thing that matters. You still want to find someone who clicks with you and makes you feel good about your money journey. Think of these letters as bonus points, but a good personality and competency is the real gold star!

Investment advisory services offered through Equita Financial Network, Inc. an investment adviser with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Equita Financial Network also markets investment advisory services under the name, Astraea Wealth Management LLC.