Choosing the right financial advisor is a big decision. You’re not just trusting someone with your money, you’re trusting them with your future. A good advisor can help you navigate complex decisions about retirement, taxes, investments, and more. But before you commit, it’s worth doing your homework to make sure the person or firm you choose has the professionalism, integrity, and track record you expect.
Here are some practical steps to check a financial advisor’s reputation before you make your choice.
1. Start With Verified Credentials
One of the first things to check is whether the advisor has the appropriate licenses and certifications. Common credentials include:
- CFP® (Certified Financial Planner)
- CPA (Certified Public Accountant)
- ChFC® (Chartered Financial Consultant)
You can verify licenses through regulatory bodies such as FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure database. These tools also list an advisor’s work history and any disciplinary actions.
2. Look for Independent Reviews and Ratings
While client testimonials on a company’s website can be useful, it’s also important to look for third-party sources. Websites like the Better Business Bureau (BBB) offer an independent platform for customer feedback and business ratings.
For example, you can view TruNorth Advisors on the BBB to see accreditation details, business history, and any reviews or complaints. Checking multiple sources helps you get a fuller picture of the firm’s reputation.
3. Ask for References
A reputable advisor should be willing to provide references from current clients (while respecting privacy rules). Talking to someone who has worked with the advisor can give you insight into their communication style, responsiveness, and ability to follow through on promises.
When speaking with references, ask specific questions such as:
- “How often do you meet or communicate with your advisor?”
- “Has your plan adapted well to life changes?”
- “What do you appreciate most about working with them?”
4. Evaluate Transparency and Communication
A trustworthy financial advisor will clearly explain how they are compensated, what services they provide, and how they create plans for clients. If an advisor is vague about fees or reluctant to discuss their process, consider that a warning sign.
During an initial meeting, notice whether they:
- Answer your questions directly.
- Avoid jargon in favor of plain language.
- Take time to understand your unique goals.
5. Research Their Online Presence
Many reputable advisors maintain professional profiles on platforms like LinkedIn, share articles or videos, and keep an updated company website. While this isn’t a replacement for credentials or reviews, it can give you a sense of the advisor’s philosophy, values, and commitment to client education.
6. Check for Community Involvement
Advisors who are active in their local community often have a network of relationships that can benefit their clients. This might include hosting educational workshops, partnering with local nonprofits, or supporting community events.
While not a requirement, community involvement can be a good sign of an advisor’s stability and commitment to the area they serve.
7. Trust Your First Impressions
Even if an advisor has impeccable credentials and a clean record, you need to feel comfortable working with them. Your relationship with a financial advisor should be built on trust, and that starts with a good rapport.
Pay attention to whether you feel heard, respected, and understood during your early conversations. An advisor who prioritizes your concerns and communicates openly is more likely to be a good long-term fit.
Conclusion
Checking a financial advisor’s reputation before hiring them is an important step in protecting your financial future. By verifying credentials, reading independent reviews, asking for references, and evaluating their communication style, you can make a more informed decision.
Taking the time to research now can help ensure that the advisor you choose has the expertise, integrity, and client focus you need for the years ahead.
