Choosing the right financial advisor is one of the most important decisions you will make and will influence decades of decisions about your money.
It shouldn’t be about first impressions but about asking the right questions.
Are you just starting to save, have years of investment history, or require a strategic retirement plan to get you through your golden years? These questions will initially help you determine the type of financial advisor you need.
Next, it’s important to know your financial goals before you meet with your advisor: are you saving for your child’s post-secondary education with a Registered Education Savings Plan (RESP), adding a percentage of your income into a Tax-Free Savings Account (TFSA), or leveraging provincial tax advantages for retirement planning?
With your goals in mind, how do you dig deeper to evaluate if an advisor is the right fit?
What to Look For in a Calgary Financial Advisor?
There are different aspects to consider when you’re searching for a financial advisor in Calgary to handle your investments, financial accounts, and retirement planning.
A few things to keep in mind:
- Does the advisor hold the proper registration required to provide financial advice?
- Are your financial needs understood properly?
- Can the advisor clearly explain their fees, recommendations, and processes?
- Do they have the correct designations to help you? (CFP, CIM)
The Main Considerations to Explore
There is a lot of financial noise circulating online about what to invest in, where to invest and how to do it properly. A financial advisor is there to help you focus on fundamentals and reach your goals by offering personalized planning and investment management advice.
The next important steps to follow to find your ideal advisor match is to consider what to look for and why it matters.
Transparency: A financial mentor should disclose important financial information related to your investment or retirement plan upfront, so you don’t have to guess what is being shared. This may include sharing fees, performance reporting, and written documentation.
Planning: Your advisor should ask you for your full financial picture: assets, cash, investments, insurance, wills, tax returns and notices of assessment both personal and corporate,and more to know how to manage your account properly. This will help with your overall financial plan going forward.
Investment philosophy: Does your advisor take the time to understand your risk tolerance and capacity, and do their recommendations reflect that understanding?
Communication style: Does your financial advisor have regular check-ins, use plain language vs jargon, and invite questions from you? Communication style is vital to a positive, ongoing relationship between the client and the advisor.
After you’ve figured out some key questions, know your financial goals, and are ready to find an advisor, you need to know the warning signs.
Red Flags to Watch Out For
While you may feel confident about the advisor you’re considering for the job, it’s prudent to know some of the common red flags to watch out for.
- Promised returns: Any guaranteed claim, such as “you will make 15% this year,” is worth flagging as a warning sign. Other promised phrases, including: “there is no risk,” and “you can’t lose money on this,” are empty promises advisors shouldn’t make.
- Pressure to act: Avoid organizations that talk about “buying now,” “only a few spots left,” or “you need to move before the market changes.” These are classic pressure tactics. Avoid them at all costs.
- Avoid questions about fees: If your advisor skirts questions about their fees, this is also a warning sign. All fees and the fee structure should be laid out plainly in writing.
- Lead the conversation with products, not planning: Your advisor should be talking to you about your goals, family needs, debt, tax position, risk comfort and more. If there is no conversation about your plan, it’s time to exit and find another advisor.
- They can’t explain their strategy: Your personal financial plan should be crystal clear, and the advisor should be able to explain the why of their strategy. If not, it’s time to start shopping around for a new advisor.
Choosing An Advisor with Confidence
Trust and decision-making play a huge part in hiring the right financial advisor. As a client, you’re entrusting them with your current and future life savings, your intentions on what buckets to put your money into, and your retirement wealth plan. There is also emotion involved, as well as financial considerations, so tread carefully when finding the best fit for you and your family.
That’s why it’s worth looking past a good first impression. Registration, credentials, fees, and communication style all tell you whether an advisor’s practice actually matches their pitch – and that’s a decision worth taking your time on.
Contact Moraine Wealth for a discovery call to discuss your financial plans and strategy.
Disclaimer: This article is for informational and educational purposes only and does not constitute individual financial, investment, tax, or legal advice. Strategies mentioned may not be suitable for all investors. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. We recommend consulting with a qualified financial professional or tax advisor regarding your specific circumstances before making any financial decisions.