How to Choose the Right Financial Advisor: What to Know Before Making a Decision
Featuring Tina Mistry, CFP®, and AJ Flores, CFP®, of Portfolio Advisors Inc.
Whether you’re preparing for retirement, saving for a major purchase, or simply looking for guidance on managing your investments, choosing a financial advisor is an important decision.
With so many financial professionals offering different services, investment strategies, and fee structures, knowing what to look for can help you find someone who fits your needs.
In a recent ABC30 Watching Your Wallet segment, Tina Mistry, CFP®, CEO and President, and AJ Flores, CFP®, Lead Financial Advisor at Portfolio Advisors Inc., shared several important questions to ask before choosing a financial advisor.
Understand What Services a Financial Advisor Provides
Not all financial advisors offer the same services. Some focus primarily on investment management, while others provide more comprehensive financial planning that considers retirement, taxes, estate planning, and other financial priorities.
Before choosing an advisor, it’s important to understand what their services actually include and whether they align with your goals.
“If a financial advisor says they provide retirement planning, financial planning, investment planning, understand what those actually mean and whether those services are applicable to what you’re looking for,” Tina explained.
For example, someone approaching retirement may need guidance on turning savings into retirement income, while another person may be looking for help managing investments or coordinating financial decisions with their tax professional.
Knowing what you need can help you narrow your search and ask more informed questions.
Ask How Your Financial Advisor Gets Paid
Understanding an advisor’s compensation is another important part of the selection process.
Financial advisors may be compensated through fees, commissions, or a combination of both. These arrangements can influence how services are provided and whether potential conflicts of interest exist.
“How are they compensated? Sometimes, that can reveal possible conflicts of interest,” Tina said.
Before committing to an advisor, ask about their fee structure, what services are included, and whether they receive compensation for recommending certain financial products.
AJ also recommends asking about the advisor’s investment philosophy.
“I think that goes hand in hand with how they handle your assets as well,” AJ explained. “What sort of investments do you typically work with, and what sort of approach to investments do you take?”
Understanding how an advisor manages investments can help you determine whether their approach fits your financial goals, timeline, and comfort with risk.
Review Credentials, Licensing, and Professional Background
A financial advisor’s credentials and professional background can provide valuable insight into their qualifications.
Before working with someone, take time to research their education, licenses, professional designations, and experience.
“Understanding what they hold, how they’re educated and what their continuing education looks like, as well as whether or not they have any disciplinary or legal action taken against them through their practice,” AJ said.
Credentials such as the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation indicate that an advisor has completed specific education, examination, experience, and ethical requirements.
Investors can also research an advisor’s registration and disciplinary history through resources such as the SEC’s Investment Adviser Public Disclosure database and FINRA’s BrokerCheck.
Doing your homework can help you better understand the professional you’re considering trusting with your finances.
Find Out Who Will Be There When You Need Help
One question that can easily be overlooked is what happens when your financial advisor is unavailable.
Financial planning is often a long-term relationship, and having access to support when questions or unexpected situations arise can make a difference.
“If something were to happen with your financial advisor, who continues to help you after that?” Tina asked. “Is there maybe a team of advisors that I get to work with? Who do I call if my lead advisor’s on vacation or something urgent comes up?”
Understanding how an advisory firm operates can help you determine what level of communication and continuity of service to expect.
At Portfolio Advisors Inc., our team-based approach allows us to collaborate on client needs and provide ongoing support.
“If they do have that sort of team approach, it’s helpful to know that somebody else is familiar with my case if my advisor happens to be on vacation,” AJ explained.
Having a team familiar with your financial situation can help maintain continuity as your needs and circumstances change.
Come Prepared With Your Financial Goals
Choosing a financial advisor isn’t only about evaluating their qualifications. It’s also about understanding what you want to accomplish.
Before your first meeting, consider the financial questions or concerns that prompted you to seek guidance.
Are you wondering whether you’ve saved enough for retirement? Do you need help reviewing your investments? Are you navigating a major life transition, such as receiving an inheritance, changing careers, or preparing to sell a business?
You don’t need to have every answer before meeting with an advisor. However, having a general understanding of your priorities can help make the conversation more productive.
A good initial meeting should also give you an opportunity to ask questions, understand the advisor’s process, and determine whether the relationship feels like the right fit.
Choosing a Financial Advisor Is About More Than Investments
The right financial advisor should understand more than your account balances. They should take the time to learn about your financial goals, concerns, and the decisions that matter most to you.
Before making your choice, consider the services offered, compensation structure, professional credentials, investment philosophy, and the level of support you can expect over time.
At Portfolio Advisors Inc., we’ve served individuals and families throughout the Central Valley since 1990, providing independent, fee-only fiduciary financial guidance.
Our approach begins with understanding each client’s circumstances and developing a financial plan that connects investments, retirement, taxes, estate considerations, and other important financial decisions.
Whether you’re searching for your first financial advisor or considering a second opinion, taking time to ask the right questions can help you make a more informed decision about who will guide your financial future.
