Insights & advice
How to choose an advisor
March 2023 – 15 min read
Key takeaways
Choosing an advisor is a personal decision, as you’ll need to find someone who can help you make long-term plans and big decisions about your finances.
Some things to consider include what you need help with, your budget, the advisor’s expertise, “bedside manner”, and more.
An introduction to choosing an advisor
The right advisor can play a big part in helping you set financial goals, understand strategies for investing and saving and bringing your plans to life.
There can be many reasons why you’ve decided it’s time to start working with an advisor – perhaps your financial situation has recently changed, you’re nearing retirement, or are experiencing a life milestone like relocating or welcoming a baby.
Whatever your reasons, an advisor can provide knowledge and expertise that can help. When it comes to choosing an advisor, there are some things to keep in mind when deciding on the right person for you.
Consider your needs
Think about why you’re considering working with an advisor in the first place. Advisors can help with several things, such as:
- Managing day-to-day finances and budgeting
- Tackling debt
- Meeting financial goals like getting married or starting a family
- Saving towards buying your first home or a child’s education
- Making the most of government benefits and saving on your taxes
- Investing and retirement planning
- Estate planning and advice you might consider when creating a will
- Starting a business or becoming self-employed
You may need help in more than 1 area of your finances, so getting a clear idea of what you’re hoping to achieve will help you start to narrow down advisors that might be right for you.
Research your options
Not all advisors offer the same services or specialize in the same subject, so once you’ve determined the goals that are important to you, it’s a good idea to find an advisor that matches. There are some criteria you may want to consider.
The advisor’s area of expertise
At your initial meeting, it’s a good idea to bring a list of questions to ask your advisor that can help you determine if they’re the right fit for you.
For example, some advisors may specialize in helping people protect their families with products such as life, critical illness or accident insurance. Some may help retirees or people nearing retirement to make a retirement budget or access retirement savings, while others may provide more generalized wealth planning services.
It’s a good idea to make sure you’re choosing someone who will be able to help you not only with the services you may need now, but who can build a long-term relationship and provide changing advice and help throughout the future.
Your personal preferences
When choosing an advisor, it’s important to remember that you’ll not only be sharing details about your financial status, but also about your personal life.
Therefore, you should feel a connection with your advisor that makes you feel comfortable discussing not only money, but your plans and hopes for the future.
Does this person ask questions and genuinely listen to your responses, or are they quick to recommend products and services without getting to know you?
Do you trust this person to help you through good times and successes, as well as through tough times like the loss of a loved one or financial difficulties?
Do you trust this person to help you through good times and successes, as well as through tough times like the loss of a loved one or financial difficulties?
These and other questions will help you decide if this is someone you can envision a long-term relationship with. Ultimately your advisor should be someone that will take the time to understand your needs and provide personalized advice that will help you achieve your financial goals.
Other personal preferences you may wish to consider include:
- Whether you’d like to meet someone face to face, only digitally, or a combination of the 2
- How often you’d like to meet
- How you’ll measure success
- If they offer any tools, calculators or other resources alongside their advice
What’s next?
Meet with different advisors and take notes to compare things like their services, rates, and availability.
You may want to start by asking friends and family if they currently have an advisor they’d be willing to recommend.
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.
