How to Find the Best Financial Advisor in 2023

find the best financial advisor 2023

In today’s complex financial landscape, it’s no surprise that investors are actively seeking additional guidance. With so many investment options, retirement plans and market fluctuations, decisions can feel less stressful when coupled with an expert’s deep understanding of the financial landscape.

Finding the best financial advisor for your own goals isn’t always an easy process, but there are some ways you can help expedite your search: 

1. Define Your Financial Goals

Before diving into the world of financial advisors, it’s essential to have a clear understanding of your end goal. Are you looking to save for retirement, invest in real estate or grow your investment portfolio? Each goal may necessitate different strategies and finding the best financial advisor involves aligning your goals with their expertise. This step is crucial as it directly affects the type of financial advisor you need.

2. Understand the Types of Financial Advisors

In 2023, the financial advisory landscape has evolved to offer various types of financial advisors, each specializing in different areas of wealth management. Here are some common types of financial advisors you might encounter:

  • Investment Advisors: These advisors specialize in managing investment portfolios. They analyze market trends, select suitable investments, and monitor your portfolio’s performance. Investment advisors often work closely with you to align your long-term investments with your financial goals.
  • Certified Financial PlannersTM (CFPs®): CFPs are professionals who have undergone rigorous training and have obtained certification to offer comprehensive financial planning services. They can help you with a wide range of financial goals, including retirement planning, tax strategies, and estate planning.
  • Estate Planning Attorneys: Estate planning is crucial for individuals with substantial assets. Estate planning attorneys specialize in creating plans that ensure a smooth transfer of assets to beneficiaries while minimizing tax implications.
  • Insurance Agents: Insurance is a vital component of financial planning. Insurance agents can help you choose policies that provide protection against unexpected events, such as health issues or accidents.
  • Robo-Advisors: These automated platforms use algorithms to create and manage investment portfolios based on your risk tolerance and financial goals. They are a cost-effective option for those who prefer a hands-off approach to investing.

3. Research Extensively

Once you have a clear picture of your financial goals and the financial advisor you want to work with, it’s time to conduct thorough research. The internet is a valuable resource for gathering information about potential advisors. Check their websites, social media platforms (LinkedIn, for example), read client reviews and learn about their individual areas of expertise. Additionally, you can inquire within your personal and professional networks for recommendations. Personal referrals often provide valuable insights into an advisor’s skillset and customer service.

4. Evaluate Qualifications and Credentials

Just as in many industries, staying up to date on certifications or information is paramount. When evaluating potential advisors, consider their qualifications and credentials. Look for certifications such as Certified Financial PlannerTM (CFP®), Chartered Financial Analyst (CFA), or Certified Investment Management Analyst® (CIMA®). These designations indicate that the advisor has undergone standardized training and adheres to high ethical standards.

5. Consider the Fee Structure

Financial advisors have different fee structures, which is crucial for making an informed decision. Some advisors charge a percentage of your assets under management. In contrast, others charge hourly fees or flat fees for specific services. Robo-advisors, for instance, often have lower prices compared to human advisors.

6. Conduct Interviews

Narrow down your list of potential advisors and schedule interviews with them. During these interviews, ask about their experience, approach to financial planning, and how they tailor their services to meet clients’ needs. Feel free to inquire about their track record and client retention rates. Also review their Form Customer Relationship Summary (Form CRS) or Form ADV Part 3. This can be found by visiting the financial advisor’s website and can also be provided upon request.

7. Trust Your Instincts

Beyond qualifications and credentials, trust is a vital factor in the advisor-client relationship. During your interactions, pay attention to how comfortable you feel discussing your financial matters with the advisor. A trustworthy advisor should be an effective communicator who listens to your concerns and offers transparent explanations.

And at the end of the day, finding the best financial advisor in 2023 will likely be a multi-faceted approach. Defining your financial goals, understanding the types of financial advisors available, and conducting thorough research are crucial steps to take. Then, evaluating an advisor’s qualifications, fee structures, and conducting interviews will further refine your choices. Ultimately, the right financial advisor will provide tailored guidance and instill confidence in your financial journey.

This is for informational purposes only, does not constitute individual investment advice, does not guarantee future results, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance.

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA).