A financial advisor is key to navigating your financial journey, helping you make informed choices regardless of where you are in life.
Let's face it: the financial advice sector can often feel overwhelming with acronyms like CFP, RIA, and CPA swirling around. Beyond these terms lies a fundamental question: What's in it for me? What real benefits can a skilled financial advisor provide? And how can I be sure they're looking out for my best interests rather than just selling me something?
This week on the podcast, we hear from Pam Krueger, the founder and CEO of Wealthramp. This service connects individuals with vetted, fee-only fiduciary advisors — no commissions, just straightforward advice.
Throughout her career, Pam has empowered people to make savvy financial decisions. She shares invaluable insights on what a quality financial advisor should do for you and highlights the critical questions to ask before committing.
What is the Role of a Financial Advisor?
Jean Chatzky: Pam, we've discussed before when it's wise to seek an advisor. Let's kick off with a straightforward, often misinterpreted question: What does a financial advisor actually do?
Pam Krueger: From my perspective, many TV ads emphasize financial advisors as sources for the hottest investment opportunities. However, the right advisor will assist you with every financial decision you encounter. This includes all your assets and debts. Financial advice must be comprehensive; it can't exist in a vacuum. It involves your estate, family, and investments, all seen within the larger picture. Your advisor should begin by listening to your goals.
Identifying Warning Signs: Bad Financial Advisors
Jean Chatzky: You interview numerous advisors, yet many don't make it onto your recommended list. What red flags lead to their removal?
Pam Krueger: Major red flags are found in disclosures. Any advisor you're considering will have background information available, and you can check it through brokercheck.finra.org. Look for any red flags there. Serious complaints that reach this level are a cause for concern.
When Should You Hire a Financial Advisor?
Jean Chatzky: Let's discuss those who prefer managing their own finances. When is it time to consider an advisor? What life events should trigger that decision?
Pam Krueger: Approximately 80% of my audience are self-identified DIYers who eventually realize that something has shifted. This might be due to a divorce, the passing of a loved one, or an inheritance. These moments can prompt you to seek help. However, you don't need to jump in headfirst. Consider a one-time consultation with an advisor to assess your situation. You can ease into it, hiring them to evaluate your insurance, family needs, aging parents, and long-term care — everything that causes you concern.
? … Seeking a financial advisor?
We've partnered with Wealthramp to assist our community in finding qualified, fee-only fiduciary advisors — no commissions, just genuine guidance.
