How do you go about choosing a financial advisor? Some people fall into a relationship with a financial advisor more or less through proximity or accident – perhaps you or a friend play golf with them, or you choose one a family member or friend uses without talking to any others.

Looking for a financial advisor in St. Louis? Check out this handy guide!

A financial advisor in St. Louis, though, needs to be chosen carefully. Comprehensive financial advisors can end up playing a large role in your life. They will work with you to realize your goals and dreams. To do so, they will review your cash management such as income and expenses. They will advise you on investment strategies based on market risk and give input on retirement plans. Some of the better financial advisors can also recommend and model tax-efficient strategies for your individual situation.

Financial advisors will recommend methods to protect your wealth such as insurance. They may become involved in business strategy and advise on legacy planning as well. Financial planners work with you to assure your estate plan is complete with wills, trusts, and powers of attorney so that your affairs can be managed if you become ill or incapacitated.

Working with a financial advisor can potentially increase your wealth and save you money. It’s not a decision to be made lightly.

Perhaps one of the best ways to advise you on choosing a team that can do all these things while working effectively with you, is to point out some common mistakes to avoid when choosing a financial advisor! 

1. Hiring the first one you hear about

To get the best financial advisor in St. Louis for your needs, you should interview two or three. You need to give this decision the same time and consideration you would give hiring any other professional, such as a lawyer or accountant.

Financial advisors expect to have potential clients talk to them about a future relationship. The initial meeting should be free to you and last anywhere from 30 minutes to an hour. 

During the meeting, you should try to ascertain several things. First, are you comfortable with the people you’re talking to? Can you imagine discussing your financial affairs, goals, and concerns with them on an ongoing basis?

Second, are they able to explain concepts and terms to you? It’s a good idea to ask them some questions to see how they respond. Do you understand the explanations? You should, or it’s time to consider other options.

Third, what are their strategies and approaches? How do they handle risk in markets, for example? What kind of returns should you expect to get, on average? Will you be talking to a specific person or several people? What is their turnaround time for questions or concerns?

2. Not understanding their backgrounds or qualifications

Virtually anyone can hang out a shingle in front of their office saying “financial advisor.” The term itself does not guarantee any particular background, qualifications, or expertise – or any degree of comprehensive knowledge. In fact, getting to know the advisor’s background and qualifications should be one of the topics covered in the initial interview.

However, there is a way to ascertain that you are getting someone with a strong background and excellent qualifications. Ask if they are a CERTIFIED FINANCIAL PLANNER™ Professional. CFP®s are required to have a specific number of years in financial advising and to pass a rigorous examination on multiple financial topics, including investments, retirement planning, tax strategies, risk management, cash management, estate planning, and more. 

In addition, all CFP®s are fiduciaries. A fiduciary is required to put a client’s best financial interests before their own. This may sound like an obvious qualification, but not all financial advisors are fiduciaries. Some may work on commission to sell stocks or insurance products, and thus be incentivized to recommend products that may remunerate them more than others. A fiduciary could not recommend something only because they received a commission.

3. Not understanding their specializations or expertise

Some advisors specialize in specific groups of people to work with, such as retirees or high-net-worth individuals. Others specialize in specific categories of financial planning, such as retirement planning or business planning. (This is true despite having comprehensive qualifications. Many specializations emerge as financial planners practice over the years.) Some take a particular interest in those with compatible personal beliefs, such as Judeo-Christian religious views or community involvement. 

So start by understanding any specializations or expertise they possess. Then make sure that you are compatible with the specializations or expertise that a given financial advisor possesses. There is little point in choosing an advisor who works with people just starting out if you are approaching retirement. You will not be able to realize the full value of their expertise and are better off choosing someone whose profile fits your needs.

4. Not understanding how you will be supported

It is critical to fully understand and feel comfortable with how you will interact with a given financial advisory firm. Some financial advisors work with specific clients, so you will always be talking to the same person. Others take a team approach, so while you may have a primary contact, experts on particular topics will also interact with you.  The support team is also important in terms of setting appointments, managing money requests, and routing you to the right specialist. Some may communicate primarily via online methods; others may encourage face-to-face office visits.

All financial advisors should provide regular periodic meetings as well as reporting on your investments. They should ask about changes in your life, health, and employment that could impact your financial life, such as changes in goals or life events (marriages, births, divorces, deaths).  What is their communication style when it comes to significant world and market events such as an abrupt drop in markets or political/economic news and how it might affect your finances? It’s a good idea to know in advance what to expect.

Trinity Wealth Advisors: Comprehensive Financial Planning in St. Louis

At Trinity Wealth Advisors, we are a team of CFP®s with an average of more than 25+ years of experience. We work with higher-net-worth individuals who typically have complex busy lives.  While our Judeo-Christian beliefs set the standard for our actions, they do not preclude us from working with those of varying faiths. We are fee-based fiduciaries. Contact us to discuss how to realize your goals and dreams.