Illustration by The Globe and Mail
Q: With so many financial advisers out there, I’m feeling overwhelmed about how to choose the right one for my needs. What criteria should I use to evaluate potential advisers? And once I’ve selected one, what’s the best way to work with them to create a comprehensive financial plan that addresses all aspects of my financial life?
We asked Angela Fennelow, certified financial planner at Sun Life, and CEO of Fennelow Financial Solutions Inc.
There is a lot to consider when choosing an adviser to partner with to reach your financial goals. Ms. Fennelow recommends interviewing a few to get a feel for who is a good fit for you.
“Ask for introductions from people you trust, as they may be working with or know an adviser who would also work well with you,” she said. “Your relationship with your adviser will be long-term, so you want to be sure you choose someone that you like and trust who is also competent and cares about you.”
Ms. Fennelow also suggested checking the associations that govern and qualify advisers with official designations, including the Certified Financial Planner (CFP) and Qualified Associate Financial Planner (QAFP). A list can be found on the Planner Directory on the FP Canada website.
Personal Financial Planner (PFP) and Chartered Life Underwriter (CLU) designation holders have also demonstrated a commitment to the financial planning profession, continuing education and abide by a professional Code of Conduct, she noted. Check if the adviser you’re considering is a member of Advocis, the professional association for advisers in Canada, and take a look at their LinkedIn page, as well.
The Globe and Mail also has a directory as a resource for general information regarding advisers. It involves filling out a short form of relevant questions that can help refine your search.
“Even a quick Google search should pull up a few results for you to peruse,” she added. Many advisers have client reviews available online, and you will be able to get a sense of the adviser and how they work in their community, Ms. Fennelow said.
Once you’ve set meetings with a potential candidate or two, Ms. Fennelow recommends discussing these key questions and concerns:
How long have they worked in the industry?What licences and registrations do they hold? What services do they provide? What products do they offer and which companies are they contracted with or work with?What kind of clients do they enjoy working with?How do they work with clients on a financial plan? What is their process, timelines, outcomes and associated expenses to you?Will they meet your expectations for communications, confidentiality and service? (And be sure to detail what you expect for communication and service.)How will your adviser be remunerated? While it may seem like an awkward question to ask, it is important for you to understand how much and how you will be paying for the service and the value you will receive.
Be prepared to share some details about yourself: Your current financial situation, financial goals, your family, career/business, etc., so the adviser has a chance to get to know you and share details about how they can meet your needs and work with you.
Once you’ve agreed to work together, the planning process from there will include discovery, goal setting, recommendations, implementation, reviews or updates, as well as continuing communication and client service, Ms. Fennelow said.
“I view the client-adviser relationship as a partnership – your goals and determination with the advice and guidance of a professional will help you feel confident in your plan.”
Do you want advice on a financial planning or retirement issue that’s affecting you? Send us an e-mail.