“A financial advisor? I don’t need one. My cousin Tony is a whiz with investments and finances.” If this is something you find yourself saying, stop. Unless your cousin Tony has taken classes and passed comprehensive exams, like the CFP™ boards, and works as a financial advisor, chances are you don’t want to trust your retirement to him. Cousin Tony is probably not going to be able to help you decide if you need to invest in a traditional IRA or a Roth IRA. Nor will he be able to advise you on what the possible benefits of investing in an annuity would be for you. The best answers to these questions, and others like them, come in the form of a financial advisor.

A financial advisor is there to keep you educated and invested for the long term when the market goes down, as well as when decisions are to be made. Put simply, he can be your best friend. Financial advisors, or planners, work with clients to find the best fit between the client and different investment vehicles. Some advisors are affiliated with national firms, while others work as independents.

The last time you paid your car insurance, did your insurance agent offer you the chance to purchase a Roth IRA through him? More and more insurance agencies, banks, and even Certified Public Accountants are getting into the investment business. Many of these people only promote and sell certain products. You may like the Oppenheimer Global Growth and Income Fund, but that doesn’t mean that you should invest in every Oppenheimer fund. There are, perhaps, other mutual fund companies that would better fit your needs. Every investor’s portfolio benefits from having choices available. Financial advisors have many different investment vehicles at their fingertips that help their clients achieve their goals. Advisors focus on these goals and needs to decide which investment is best, rather than applying a cafeteria plan to each client.

At some point in time, everyone will need the help and expertise that only a financial advisor can provide. They offer a well-balanced approach to your finances. Let’s face it, you may be too emotionally involved with your money to manage it properly. You have worked hard for you money and don’t want to lose it. A financial advisor is the third party to your financial situation. Just like you wouldn’t perform surgery on a family member, why should you perform surgery on your money?

Recognizing the need for a financial advisor is the first step to taking control of your finances and increasing your wealth. Selecting the proper advisor is a harder task. This is a very important challenge. You need to find the right advisor for your situation. Receiving referrals from friends or family members is a good place to start. If they are willing to share the name of their advisor, that means that they trust him. However, if you are uncomfortable asking or don’t know anyone who uses an advisor, then you will be starting from scratch. There are a few things to keep in mind when selecting your advisor. First, don’t be afraid to interview your potential advisor or shop around. Most planners offer a free initial consultation. This will give you the chance to sit down with advisors and ask questions. Second, make sure you feel comfortable with your advisor. During your initial meeting, gauge how you feel. Did the staff make you feel welcome? Do you feel comfortable discussing the most intimate details of your financial situation with this advisor? Do you think you can trust this person? If you answer “no” to any of these questions, then you should probably continue to look for an advisor. Third, make sure that any potential advisor is qualified. Nowadays, almost everyone can call themselves financial advisors. But those same people could be delivering pizzas during the evenings. To make sure advisors are thoroughly knowledgeable, look for designations following their names: i.e., Joe Smith, CFP™, ChFC, CLU. These designations mean that they have passed rigorous examinations.