Choosing a financial advisor: Important factors to consider

Many Canadians are carefree when it comes to choosing a financial advisor. Experts recommend getting recommendations from others and conducting interviews before hiring a financial advisor. Qualifications, experience, compensation, and how often you will receive reports are important factors to consider when choosing an advisor.

The article provides an overview of the different types of advisors in Canada and how financial establishments like Bold Barrel can assist you with financial planning. Let’s review the kinds of financial advisors.

How to choose a financial advisor?

Advisors can help you with insurance and risk management, retirement planning, investment planning, tax and estate planning, and educational planning. You can find financial advisors of all types and levels, from comprehensive professionals to simple investment advisors and even do-it-yourself advice. But, before hiring a financial advisor, you should first determine what you want in a financial advisor. If you want tax planning, an investment advisor is unlikely to be the most appropriate resource.

To choose an advisor, outline your desires, and match the advisor’s qualifications to your financial objectives. Remember that you can always switch advisors if you find yourself in the wrong situation. Advisors are distinguished by their education and qualifications, which are in addition to their registration. If you are looking for qualified professional advice, make sure the advisor has the appropriate professional designation. Here are how financial advisors are classified:

  • An advisor classified as a financial advisor is often a certified financial planner, a stockbroker, a registered investment advisor, a financial consultant, or a wealth manager.
  • A dedicated stockbroker or advisor will delegate your investment portfolio and planning management but will only provide limited planning advice.
  • A full-service wealth management firm or financial planning is a comprehensive option for financial planning and wealth management. This type of advisor will be the most detailed and thorough you have ever received.
  • The Registration Advisor needs to be registered with a regulatory agency in their province or territory. The National Registration Search can be used to verify their registration.
  • An automated advisor generates recommendations from computer algorithms. They are recommended for individuals with the time and desire to research and understand financial planning fully. A Robo-advisor is a digital service that simplifies and lowers investing costs by using algorithms. It is useful when you require assistance with investing for financial goals all on your own.
  • An online financial advisor is accessed online through a service that provides virtual access to real-life financial advisors. Online financial advisors typically cost less than traditional financial advisors but more than Robo-advisors.

If you’re considering hiring an advisor, consider the benefits that each service can provide you.

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