How to select a financial advisor

Before you begin your search, think about what type of financial help you'll need, and what kind of individual you'd like to work with. Once you identify potential candidates, following the suggestions below may help you find the right fit.

1. Check the advisors' credentials and experience

• Do a little homework into the various types of financial advisor credentials.
• Check online with organizations that monitor advisors or award credentials to measure qualifications, advanced degrees and experience.
• Go to groups like the Certified Financial Planner Board of Standards and the Financial Planning Association for additional information.

2. Pay attention to what the advisor asks about you

An advisor can't really provide worthwhile advice if he or she doesn't know about you, your needs and your goals. The advisor should ask questions about your finances, financial objectives, goals and risk tolerance.

3. Ask your candidates the right questions

How will you help me plan to achieve my goals?
The answer may not be a one-time plan or quick fix solution. Generally, it should be a long-term strategy that identifies incremental steps to help you move toward your goals.

How will you help me track my progress?
The advisor should be ready to help you measure your progress over time with regular meetings, statements and online tools.

What happens if my goals change?
Your plan should be flexible enough to adjust to new needs and goals, a dynamic economy and your own life changes — like buying a new home, having a family, changing jobs or retiring.

How can you help me protect what's important?
The advisor should be able to provide insurance solutions to protect existing and future assets, and to protect your loved ones.

How will we work together in the future?
Financial planning is an ongoing process — you'll have a long-term relationship with the financial advisor and his or her firm over time.

4. Make your decision. Assess your meeting based on questions like these:

• Has this advisor worked with people like me?
• Am I satisfied with how often this advisor plans to contact me and by what method (in person, by phone, via email)?
• Did the advisor seem genuinely interested in me, my family, my goals?