Whether it’s building wealth or securing a comfortable retirement, hiring a financial adviser is a major life decision.
Unfortunately, not all advisers are created equal. Hire the wrong one and you could end up worse off than when you started.
Here are three common mistakes to avoid when choosing an adviser.
Hiring an adviser who is not a fiduciary. Advisers who are not fiduciaries may get kickbacks to sell you investment products. To avoid problems, make sure your adviser is a registered fiduciary. A fiduciary is legally required to put your interests ahead of their own.
Hiring the first one you meet. This is easily the biggest mistake you can make before hiring any service professional. Talk with several candidates, ask questions and find an adviser with the attributes you’re looking for.
Not asking about experience. Credentials and education are nice, but as with most things in life, experience is often the best teacher. If two professionals charge the same price, you might be better off with the one who has 20 years of experience versus 20 months.
Bottom line? Avoiding these common mistakes when hiring an adviser can help you find peace of mind and avoid years of stress.
These days, finding a financial adviser you can trust doesn't have to be hard. Start your search with something like SmartAsset's free financial adviser matching tool, which matches you with up to three qualified financial advisers in five minutes. Each adviser is vetted by SmartAsset and is a fiduciary, which means they are legally required to act in your best interests.
CREDIT: MoneyTalksNews