How to Find a Financial Professional
“Let those who are friendly to you be many, but one in a thousand your confidant. When you gain friends, gain them through testing, and do not be quick to trust them” (Sirach 6:6-7).
When was the last time you took a hard look at your finances to figure out how you, your business, and/or your family are doing? Are you preparing appropriately for retirement? What about for unexpected expenses? College for your kids? Does your insurance sufficiently cover you and your loved ones? Do you have an estate plan in place? Is it up to date? Should you pay off those student loans or begin investing?
These are just a few of the questions a financial professional can help you with, but it can be daunting to find someone who fits your needs, will work within your budget, and aligns with your values. After all, what is the difference between a financial planner, financial coach, and investment adviser? Which one do you need? The finance industry can be confusing to navigate, and when you are talking about your money, you want to be sure you find someone you can trust! These recommendations can help you navigate the confusion.
First, Identify Your Goals and Expectations
Take some time to write down (on your phone, on your computer, or in a notebook) why you are looking for a financial professional and what your expectations are for the relationship. The different titles financial professionals hold can mean different things.
A financial coach is someone who will meet with you regularly to help you learn about finance, help you set goals, and hold you accountable for hitting those goals. A financial planner will help you assess where you are, where you want to go, and how to get there. A financial planner will meet with you once a year (or more, if you want) to reassess your financial situation. A Certified Financial Planner™ took required coursework, passed an exam, has worked in the industry for at least two to three years, holds a fiduciary requirement, and takes continuing education courses. An investment adviser will help manage your investments based on your risk tolerance and timeline.
Sometimes, a financial planner is also an investment adviser. Sometimes, a financial coach also provides financial planning services. Because it can be hard to know exactly what a financial professional does based on his or her title, it is important to know what you want before you begin looking. This knowledge will help you ask the right questions, search websites or social media, and narrow down who you might want to interview.
I think it is worth the effort, and possible extra cost, to look for a financial professional who is also a fiduciary. A fiduciary is someone required by law to do what is in your best interest, even if it is not in his or her best interest or the best interest of the firm. While we all hope that is how everyone acts, we also probably all know people who do not act this way. The financial industry is no different; there are plenty of people that are just trying to get ahead and not looking out for their clients.
Look for Value Alignment
Along these same lines, it is a good idea to consider hiring a financial professional whose values align with yours. When someone is helping you make decisions about your money, he or she could influence all areas of your budget, including your tithing, whether you live on one income or two, and how and where to invest your money. When you work with someone whose values align with yours, it is easier to rest assured that he or she will respect your desires and make good recommendations.
However, even after you hire a financial professional with the same values, you need to be sure your needs and desires are heard. For example, if you don’t want to invest in companies that provide abortions, say so. If you want to make sure your family can live on one income after you have children, make sure your financial professional knows. Financial professionals cannot read your mind, so make your needs and desires clear at the beginning of the relationship. If they change, schedule a meeting to discuss the changes. Finance is not just about money; it is also about how you plan to use that money.
Make the Decision
Financial professionals come in all shapes and sizes. Do not feel pressured or required to work with someone who does not empower and encourage you. Find someone who can answer your questions in a way you understand, and make sure you are confident that he or she can provide the services you need. I like professionals who admit what they don’t know and when to refer you to someone else. It is a sign of humility and self-knowledge that works in your best interest.
You should be talking to your financial professional at least annually, if not more frequently, so make sure they are someone you can tolerate—but, even better, someone you enjoy spending time with. They don’t need to be your best friend, but you are trusting them with your money, so building a relationship with them is in your best interest.
Don’t be afraid to ask to get coffee or drinks with someone you are considering hiring. A less formal meeting can help you differentiate among your options. Once you have narrowed your search to a few people, see which designations they hold, what those designations mean, and if they align with what you need.
There are a few different ways to go about finding financial professionals:
Search Your Network
Whether you look on LinkedIn or ask friends and family, you will more than likely find that you are already connected to a few financial professionals. It is always good to get a recommendation from someone you trust or who you know has managed his or her money well.
Search on a Religious Financial Planner/Coach Platform
Hopefully, these professionals are faithful to their professed beliefs:
Ask at Your Local Bank
Most, if not all, banks provide financial services as well. Do some research to see how your bank assigns employees to new clients, which services they offer, and how much they charge.
Search Another Network
Many of these websites allow you to customize your search so you can find someone who is right for you:
Shameless plug: Or, you could send me an email! We are accepting new clients and love to work with people who live out the Catholic faith. Even if I am not the right fit for you, I would be happy to refer you to someone else who might be.
Finding the right financial professional takes time and effort, but it is worth it. The process goes beyond comparing costs and services. Remember: This is the person who will be giving you advice on your money and helping you plan for your future. God is calling you to specific endeavors in this life, and they may require money. Take the time to find the financial professional God wants you to work with so he can use you to accomplish great tasks.
Erica Mathews currently works for Financial Counseling Associates. She completed her course work for the CERTIFIED FINANCIAL PLANNER™ certification at the College for Financial Planning and is one year of experience away from completing her certification. She is passionate about helping families build their wealth so they can live out the calls God has places on their hearts. She lives in Colorado with her husband and four kids. They love everything outdoors including gardening, hiking, biking and simply exploring nature. If you would like to reach out to Erica, her email is erica@fca-inc.com.