Broker Check

Practical Planning Tip: How to Choose a Financial Advisor - Who Do They Typically Work With?

May 29, 2024

Today I’ll cover a question I receive a lot from individual investors who are in the process of searching for a financial advisor. And that question is: “How do I find a good financial advisor that is right for my family?”

Before we jump into that information, let me first share some background.

So, According to the Bureau of Labor Statistics there are approximately 218,000 “personal financial advisors” in the country. That’s a lot of people who hold themselves out as giving financial advice. So how can you confidently choose a good financial advisor from the pack. There is no shortage of colleagues, friends, and family members recommending the person with whom THEY work. However, determining if that advisor is a good fit for your needs may require some due diligence.

In this series of videos, I will discuss a framework to help evaluate a financial advisor’s level of knowledge, integrity, and compatibility with your family’s needs.

The first consideration is to determine the advisorsTypical client base: Good financial planning can be quite nuanced. For example, in the Jewish world an orthodox Jewish family likely has different financial priorities than a gentile one. Even within the Orthodox community, different families have different challenges based on their family dynamics and lifestyle choices. It’s imperative to find someone who can understand these subtleties. This prerequisite knowledge level will allow them to offer PROACTIVE financial advice that you may not have considered.

You can drill down further to find someone who not only understands an Orthodox lifestyle, but also specializes in working with folks who are at your stage of life. For example, If you are nearing retirement, then finding an advisor who spends most of their time focusing on this area is helpful. If you are a corporate executive in the middle of your career, then finding someone who spends much of their time working with that demographic is also important.

Just because a financial advisor has a long alphabet soup of credentials, does NOT mean they have the background and know-how to give YOU and your family advice that is relevant to your specific needs and lifestyle.


You can WATCH the full video here.