What Should You Know Before Hiring a Financial Advisor?

Hiring a Financial Advisor

Last week, XY Planning Network and a number of our member advisors co-hosted Experian’s weekly chat on Twitter. In case you missed this fun event, we’re recapping the highlights for you here.

With network co-founder Alan Moore, 5 XYPN members provided their tips, ideas, and insights:

Take a look at what we covered and learn what you need to know before hiring a financial advisor.

Why Do People Wait to See an Advisor — and How Can Advisors Help?

The first two questions posed in the chat covered why some people have never worked with a financial advisor, and why they should make time to  see a pro.

  1. Why have many people never seen a financial advisor?
  2. Why is seeing a financial counselor helpful? When is a good time?

Here’s what our members had to say:

What Qualifies Someone as a Professional Advisor?

Many people simply don’t know what to look for when it comes to finding a true professional who will work in your best interest and provide you with the best service.

XY Planning Network makes it easy, as all our advisors are certified, have experience, and have sworn to uphold a fiduciary oath.

But not all outlets are so transparent and concerned about the wellbeing of people seeking advice. Here’s what qualifies someone as a true professional:

We also talked about what to look out for with chat question #4: What types of financial advisors should you avoid?

What Does a Financial Advisor Actually Do for You?

Many people don’t understand the wide array of services that financial advisors can provide to you. At XY Planning Network, our members focus on just that: providing service. There are no commissions, no hidden fees, and no product sales. We’re all about comprehensive financial planning.

How Do Financial Advisors Get Paid?

There are a variety of ways advisors can get paid. Our members are fee-only and most offer a monthly subscription model (meaning you pay a monthly bill, just like any other service you pay for monthly) or work on an hourly basis. You can search for an advisor based on how they are paid in XYPN’s Find An Advisor portal.

With question 6 in the chat, our members provided more information on compensation.

Final Tips for Hiring a Financial Planner

Be sure to join in the weekly tweetchat hosted by Experian by following @experian_us and participating with the hashtag #creditchat. Chats happen each Wednesday at 3pm EST.

You can catch XY Planning Network (@xyplanning) and more of our advisors back on the chat on May 6th, when we’ll discuss Frugal Ways to Go Green. Hope to see you there!