Whether you are a successful professional or a beginning investor who wants to provide for the future, you may be considering hiring a financial adviser. These are specialists who offer investment and financial advice and guidance to their clients. They can help clients save money, and they may also advise on taxes, estate planning, and even insurance coverage.

Choosing a financial adviser is one of the most important financial decisions you will make. This person will control or heavily influence your investment choices, which will have a long-term effect on your financial security. Researching financial advisers to make the best choice for your needs is vital. Here are some of the best ways to do that.

Investigate Standards and Qualifications

When considering hiring an individual or firm as your financial adviser, be sure to check the Form ADV. This is a free document that gives you a good summary and background of the person or company, including fee structures, past disciplinary actions for misconduct, and a professional history.

Choose the Type of Money Pro You Need

There are different types of financial advisers.

• Registered representatives—Sometimes called bank representatives, investment representatives, or stockbrokers. They are paid fees for selling information and investment packages.
• Money managers—Investment Adviser Representatives (IAR) or Registered Investment Advisers (RIA). They can make investment decisions for clients without their advanced approval.
• Financial advisers—Money pros with the same registrations as money managers. They earn fees and are considered financial fiduciaries, meaning they must maintain the highest standards in the financial services sector. ”Fiduciary” means these professionals are required to look after your interests.
• Financial planners—There are no licensing regulations or certifications, and anyone can claim to be a financial planner. Look for individuals who have chosen to become certified.
  

There are even automated advisers, frequently called robo-advisers. You may not get the human touch, but robo-advisers are fairly affordable and often have no or low account minimums, making them a valid option for beginning investors and those with uncomplicated finances. Reliable financial news and business information websites such as Forbes.com and Nasdaq.com offer tips to help you carefully vet anyone you are considering hiring.

Look for Reviews

Some reliable websites analyze financial service providers, both corporations and individuals, and publish reviews that are good sources of information to help you make informed decisions about putting your money in the hands of someone else. On the site SmartAsset.com, this review of Fisher Investments is one example of this type of critical study. The more you know about the way individuals or corporations involved in financial advisement operate, their past work and level of experience, and the importance they place on serving their clients well, the less anxious you will feel. Gathering knowledge makes it easier to make an informed decision about the money pro best suited to your particular needs. You’ll want to choose an asset manager who has a successful track record.

Study Industry Databases

Visit the official industry sites of the agencies regulating the practice of the various types of financial advisers.

• BrokerCheck by FINRA—For brokers and brokerage firms
• Certified Financial Planner (CFP) Board Directory—For financial advisers with a CFP designation
• Database for the Investment Adviser Public Disclosure Board—For investment advisers and Registered Investment Advisers, both individuals and firms
  

Check to see if the person or company you are considering hiring is listed. If they said they are listed but you cannot find them, you should grow wary. However, sometimes omissions happen for simple reasons such as administrative errors. To be sure, contact the individual or agency directly to discuss this.

Research Pays Off

Before you turn your finances over to anyone, take the situation into your own hands with some research. There are reputable financial websites and official industry regulatory databases that offer advice and list individuals and corporations who have earned the required certifications to legally practice as a financial professional. Research now can save problems later.