Why having a financial advisor is more important than you think

Whether this is your first contribution or you're a veteran investor, finding the right financial advisor for you is never an easy task. Here to offer her expertise and tips is Robyn Thompson, financial expert, a wealth management advisory professional and founder of Castlemark Wealth Management Inc. Clearing the air around what exactly to look for in an advisor, she offered up some advice that anyone can use in their search. Find it below, and watch the video above for more from Robyn!

UNDERSTAND THE TYPE OF FINANCIAL ADVISOR

There are financial planners, investment advisors, insurance advisors, accountants and lawyers. But mostly people go with a financial planner to start with. Often, people don’t seek the help of a planner until they’ve accumulated a fair amount of assets - but, in fact, you’ll accumulate assets faster with a plan than without one.

IDENTIFY THE PROBLEM

It’s important to know your problem areas before you start looking for an advisor. Where and why are you struggling with finances? Usually, people start with debt management and savings, opting for either when there’s a drastic change in their lives, like a birth, death, retirement, or health issues.

VERIFY CREDENTIALS

In this business a lot of titles exist and it is very important to understand each title and how it relates to your specific needs. There are many designations for advisors, including Certified Financial Planner (CFP), Chartered Investment Manager (CIM), Fellow of the Canadian Securities Institute (FCSI), Chartered Life Underwriter (CLU), Chartered Professional Accountant (CPA) and Chartered Financial Analyst (CFA). Look for at least some of these accreditations when shopping for an advisor.

FEE TRANSPARENCY

It’s all about the value. Hourly rate, flat rate per project, assets under management - in these days, mostly everything is negotiable. Always ask your advisor to disclose whether they have any hidden costs, charges, or commissions, and be sure to read any contract thoroughly before signing. Ask the advisor or an independent third party to clarify anything you don’t understand.[video_embed id='1741079']Everything you need to know about your credit score[/video_embed]