Choosing the Right Financial Advisor: Division of Securities Offers Tips to Stay Safe, Attain Goals

COLUMBUS, Ohio - In recognition of Financial Planning Month this October, the Ohio Department of CommerceDivision of Securities is highlighting ways that Ohioans can help ensure they select a financial advisor tailored to their unique financial needs.

Working with a financial adviser can help ensure you manage personal finances effectively and you are able to make progress toward financial goals. Whether you're interested in starting a college fund, getting out of debt, preparing for retirement, or simply getting your financial house in order, the right advisor can help you establish specific goals, identify a strategy to attain them, and make sure you remain on track. Developing a relationship with an adviser can significantly influence your future financial well-being.

"The process of finding the right financial adviser doesn't need to be stressful," said Ohio Securities Commissioner Andrea Seidt. "With a little research and understanding, you can make sure you choose an adviser who best meets your specific needs. Your finances play a critical role in your future, and selecting the right advisor is an important early step in securing that future in the short and long term."

To help Ohioans navigate the process of selecting the right financial adviser, the Division of Securities is offering clear guidance to help ensure the adviser's financial expertise matches with your financial needs and goals.

Understanding Your Financial Needs

Before you can start your search for a financial adviser, it's important to identify what it is you're hoping to achieve. Financial advisers offer a range of services, from savings goals and budgeting to retirement planning and asset management. Understanding your specific needs will help to streamline the search process and ensure you select an adviser whose expertise aligns with your objectives.

Researching Adviser Credentials

The financial advisory landscape encompasses various professionals, including Certified Financial Planners (CFPs) and Registered Investment Advisers (RIAs), each with distinct credentials and areas of expertise. Ensuring that advisers adhere to a fiduciary duty, in which they are obligated to act in your best interests, can offer peace of mind since you'll be entrusting them with your financial goals.

Exploring Different Adviser Types

From digital options like robo-advisors to in-person planners, there are a wide range of adviser types that exist to cater to diverse preferences and budgets. In addition, resources such as FINRA's "Working With An Investment Professional" can help Ohioans understand the range of available professionals and services.

Vetting an Adviser

Once you've identified potential advisers, conducting a thorough background check is imperative. Ohio residents can research the background and experience of financial brokers, advisers and firms by utilizing FINRA's Broker Check. That tool can also help verify that an individual or firm is registered, as required by law, to sell securities and/or offer financial advice. In addition, make sure to verify an adviser's credentials, review service offerings, and understand their fee structures, such as whether it is percentage-based, commission-based, or involves flat fees. By doing this work up front, you can help ensure alignment between your financial ambitions and the adviser's capabilities.

Asking for Referrals

If you have friends or loved ones who use financial advisers, you may consider asking them about their experience. If they are happy with their adviser and have a longstanding relationship, you may consider reaching out to the adviser to see if they'd be willing to engage in an introductory conversation.

Making the Selection

You'll be engaging with your financial adviser on a regular basis, and you will often be discussing sensitive items. It's important that, in addition to having the appropriate credentials and background, that you feel comfortable with your adviser. If you don't feel 100% comfortable with an adviser you're considering, you may consider continuing your search.

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About the Division of Securities

The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.

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