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Rich Best has spent 28 years in the financial services industry, as an advisor, a managing partner, directors of training and marketing, and now as a consultant to the industry. Rich has written extensively on a broad range of personal finance topics and is published on several top financial sites. Recent books include The American Family Survival Bible and Annuity Facts Revealed: What You MUST Know Before You Invest.

Business Owners Need to Select the Best Financial Advisors

Business Owners Need to Select the Best Financial Advisors

Business owners need a financial advisor for the same reasons they need a CPA or attorney. Most don’t have the time, specialized knowledge, or inclination to do the work of planning for their financial security. But, you don’t want just any advisor. You need a competent, ethical professional who puts your financial interests first.

Select the right advisor and you should have more money in the future. Select the wrong advisor and there is a good chance you will have less money. Consequently, this is one of the most important financial decisions that you will ever make.

How much do you gain if you select the best financial advisor?

How about $1 million?

Vanguard, the largest no-load mutual fund family in America, conducted a study that found high-quality financial advisors can improve your investment results by as much as 3 percent annually.

What does that mean to you?

Well, when you compound a 3 percent improvement over a long time period, the results may astound you. It can be worth in excess of $1,000,000 if the compounding period is long enough. Imagine how an additional $1,000,000 could impact your standard of living during your retirement years.

What can happen if you choose the wrong financial advisor?

  • It could be years before you know you made a mistake.
  • You could pay thousands of dollars of excess fees.
  • You could be exposed to unnecessary risk.
  • Your assets may underperform relative to benchmarks and indices.
  • You may be forced to defer your retirement or reduce your standard of living during retirement.

This is why choosing the right advisor is the most important financial decision you will ever make. It is not as dramatic as winning the lottery, but it can definitely impact how you live in the future.

Finding the Best Financial Advisors

The Internet is your key to winning the game. You can use it to:

  • Search for financial advisors who meet your specific requirements.
  • Research advisor credentials and ethics.
  • Contact the advisors you want to interview.
  • Make decisions based on factual information.
  • Select the best financial advisor.

A Process of Exclusion

In your research there are red flags to look for that can quickly exclude advisors who don’t meet your criteria. There are 100 reasons why you may exclude advisors from your search. Some of the more frequent ones are the advisor:

  • Does not provide the right combination of services
  • Lacks experience
  • Is paid with commissions
  • Charges more than other advisors
  • Does not have the right certifications
  • Lacks communication skills
  • Is not transparent

Who are the Best Financial Advisors?

You can then quickly narrow your search to those advisors who possess the characteristics that separate them from the rest. For example:

The best financial advisors are Registered Investment Advisors

You should limit your selection to Registered Investment Advisors (RIAs), who are permitted by the Securities and Exchange Commission to provide financial advice and ongoing services for fees, which eliminates potential conflicts of interest.

The best advisors are fiduciaries

 A fiduciary is a person who holds a position of trust, like a lawyer or a CPA. You must select a fiduciary advisor if you want a professional who is “required” to put your financial interests first.

The best advisors have deep financial expertise and experience

 The best advisors have the background, expertise and years of applicable experience providing advice and services to clients like you.

The best financial advisors are fee-only

 The best financial advisors are compensated only with fees just like the other professionals (CPAs, attorneys) you depend on for specialized advice and services. This ensures they have no conflicts of interest.

The best advisors offer comprehensive services

The best advisors provide a range of wealth-related advice and services and have access to the resources and expertise in all the planning disciplines – financial planning, investments, insurance, estate, tax, and legal – to help you achieve your financial goals.

Select the Best and Win

You want financial security during your working years, retirement years, and late in life when you need it the most. The stakes are high, so you need a competent, ethical financial advisor who can help you achieve these goals. That makes selecting a financial advisor the most important decision you will ever make.

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