Do I Need a Financial Advisor? (The ONLY Guide You Need!)

If you really want to look into hiring a financial advisor, start by searching http://www.napfa.org. You’re looking for a fee-only financial advisor (not one who charges AUM).

Here’s an introductory email you can adapt and send:

Hi Mike,

I’m looking for a fee-only financial planner, and I found you on napfa.org. A little bit about me: I have about $10,000 in total assets—$3,000 in a Roth IRA (uninvested), $3,000 in a 401(k), and $4,000 in cash. I’m looking for investments that will maximize long-term returns while minimizing costs.

If you think you can help me, I’d like to meet for half an hour and ask you some specific questions. I’d also like to hear how you’ve worked with similar people with similar goals. Would next Friday, 2/6, at 2 p.m. work? Alternatively, Monday, 2/9, is wide open for me.

Thanks!

Remember, get a “fee-only” advisor. This means you’ll pay them an hourly or project rate, NOT a percentage of your assets. 

You should reach out to at least 10 and set up calls with 5. You’ll quickly be able to tell who is a good match for you. I’ve found that about 30% don’t respond to inquiries, 50% just aren’t a fit (haven’t worked with people in my situation, are too technical, or are condescending), and about 10-20% are possible options. By speaking to at least 5, it becomes very obvious who is the best fit for you.

Be sure to interview them using the questions in my book on page 201.