The Complete Guide to Choosing a Financial Advisor

A financial advisor can be an important partner to have in your corner as you navigate life’s goals and milestones. That’s why finding the right advisor is so important. So, how do you choose? Understanding the services they offer, what they are certified to advise on and the fees they charge is a good place to start. Meeting with potential advisors and asking pointed questions can help you find the right advisor for you.

The Complete Guide to Choosing a Financial Advisor

What does a financial advisor do?

A financial advisor can help you manage your money and guide you in achieving your financial goals. They serve clients across a wide spectrum of needs and life stages – whether saving for a first down payment, dealing with debt, investing for the future, or planning for other goals. 

Financial institutions and investment firms may have different names for their financial advisor roles, but the following are the most common types of advisors at RBC. Keep in mind that there are other specialists and subject matter experts available, too, and your branch will help you identify the best type of advisor for you. Note that while we reference branch advisors and financial planners below, we will group advisor types together and refer to them as “financial advisors” throughout this article.

Branch Advisors

RBC branch advisors provide proactive, professional advice to help clients with their goals and key life events. With expertise across everyday banking, investments and credit, they are also equipped to offer robust advice to address both personal and business needs.

Financial Planners

Financial planners offer guidance beyond investments, addressing every aspect of a client’s financial well-being. From retirement and estate planning to tax and investment strategies, they provide personalized plans that adapt as needs evolve. Their goal is to help clients prepare for today and plan for a secure tomorrow.

When is it a good idea to talk to a financial advisor?

Because a financial advisor can help you set your financial goals and formulate a plan to help you reach them, meeting with an advisor at any point in life can be beneficial. However, there are certain events and milestones that are easier to navigate with the help of a financial advisor.

Major life changes

Life is full of moments of change – both big and small. Meeting with a financial advisor before, during or after major life changes can help you make the most of your money and keep your goals on track.

Getting married: There are several advantages to managing money as a couple, and a financial advisor can help you build a plan to meet your goals as a new family.  

Having kids: Adding to your family comes with short-term financial considerations (income implications, housing needs) and new long-term goals (post-secondary education). Your advisor can build or adjust your plan accordingly.

Buying a home: Presenting tailored savings solutions and strategies, your financial advisor can help you reach your housing goals and budget for the ongoing costs of homeownership.

Changing careers: Whether you have received a promotion, are facing an unexpected loss of income or are looking for a bigger career change, a financial advisor can help you navigate the change with confidence.

Sending a child to school: Managing the high costs of education can be a challenge for parents. Your advisor can help you identify the best ways to pay for school while staying on track with other goals.

Going through a divorce: A divorce is a major emotional upheaval but also a financial one. Your advisor can be a vital partner to lean on during a difficult time, helping to ensure your future financial security.

Caring for an aging parent: If you’re the primary caregiver for an elderly parent, you may face direct or indirect financial challenges, which your financial advisor can help you navigate.

Planning for retirement: Whether retirement is several years away or just around the corner, your financial advisor can help you craft a plan that considers your unique retirement vision and includes strategies to help you get there.

Other financial needs

Beyond major life events, you will have other day-to-day financial needs that a financial advisor can help you stay on top of.

• Managing debt

• Budgeting

• Saving for future goals

• Managing an inheritance

Benefits of using a financial advisor

Offering solutions to accommodate your goals, step-by-step financial guidance and financial literacy support, a financial advisor can help you develop financial confidence, long-term security and strong habits that can last a lifetime. 

Studies show that the benefits of using a financial advisor are both significant and tangible. For instance, average households who receive financial advice tend to accumulate more savings than those who have no advice. Your advisor is your financial partner, and their professional advice can play a vital role in giving you confidence in your plan, with 76% of investors who use a financial advisor reporting a positive sense of well-being.

What to consider when choosing a financial advisor

How do you choose the right financial advisor for you? Here’s what to consider:

The types of services offered

Advisors often specialize in certain areas, so it’s important to confirm they provide the services relevant to your needs. For example, newcomers to Canada may benefit from working with an advisor who specializes in helping them navigate the financial system and set up for success. 

Qualifications and expertise

Look into an advisor’s experience, qualifications and education. Accredited advisors should have their Certified Financial Planner (CFP) or Personal Financial Planning (PFP) certification. In Quebec, the equivalent is the Autorité des marchés financiers (AMF) designation. These credentials tell you that the professional has undertaken key courses, which qualify them to provide financial advice in Canada. 

Costs

Advisors may be paid through commissions, salaries or flat fees. What matters most is transparency about their compensation, the costs you’ll incur and the value you’ll receive in return.

Personality fit

Your financial advisor can be a long-term partner, so their style and personality matter. Look for someone who takes the time to understand you, makes you feel comfortable discussing personal financial matters and offers judgment-free advice. Whether you prefer an empathetic, understanding approach or a more straightforward style, finding an advisor you connect with is key to a successful partnership.

How to prepare for your first meeting with a financial advisor

To make the most of your first meeting with a financial advisor, it’s worth having some personal financial details about yourself on hand, as well as a list of questions to ask. This first meeting is an excellent opportunity to get to know your financial advisor and determine if they’re the right fit for you.

Information a financial advisor may ask for

At your first meeting, here are some things to bring with you:

• Your goals: Think about what is important to you – today, in a few years’ time and farther into the future. When your advisor knows what’s important to you, they can best formulate a plan that helps you achieve your goals.

• Your financial documents: Your advisor will want to know about any savings or investments you have right now, as well as information about your income, insurance and debt. Consider bringing with you:

  • Account statements – such as from a TFSA, RRSP or First Home Savings Account (FHSA)

  • Mutual fund statements

  • Any employee/ group retirement savings plans you belong to 

  • Insurance policies

  • Mortgage statement

  • Any other financial assets

Your advisor will also want to know the amount and make-up of your debt (i.e., credit cards, loans, lines of credit) and your major monthly bills (i.e., mortgage/ rent payments, car payments, property taxes). 

Questions to ask a financial advisor

Remember, it’s important to get to know the financial advisor across the desk before you begin to work together. You can treat your first meeting as an interview – if you’re not satisfied with the answers, you don’t need to take the next step. Here are some key questions to ask:

• What is your financial experience and education? Licensed advisors must have certain education requirements, but keep in mind that fewer years in their role may not translate to less expertise. Many people become advisors as a second career and bring specific knowledge to the role.  

• How are you compensated?

• What kind of products, services and advice can you provide? 

• What kind of clients do you serve? Ask if they specialize in a particular client group.

• How will you help me reach my goals? Ask about their investment process, how they build a financial plan and how they manage it going forward.

• What kind of service will I receive? Find out how often you will meet to review your progress, how the advisor will update you on the performance of your investments and what kind of contact you can expect from them. 

Where to find a financial advisor

Banks, credit unions, insurance companies and independent investment firms have registered financial advisors. Where you go will depend on the kind of advisor you’re looking for, and in some cases, the amount of money you have available to invest with them (some investment firms have minimum amounts).

At RBC, it’s easy to find an advisor who can support your financial needs and goals. You can book an appointment with your local branch or schedule a meeting with an RBC Financial Advisor online.

Achieving your financial goals

A financial advisor can help you manage your money, set goals and create a plan to reach them. They can provide guidance to grow your savings, reduce financial stress and improve your financial knowledge – giving you confidence in achieving what matters most to you.

Schedule an appointment with an RBC Financial Advisor to learn more about our services and how we can assist you on your financial journey.