More than half of Americans are concerned about their financial futures, but about a third of them haven't taken any action to put plans in place.
Financial advisers are a must for those who don't know much about investments, are too busy with other tasks to give their finances proper attention or who simply want to be sure that they are making the most informed decisions.
Those who are in the market for an adviser should take into account the following three things when embarking their search.
1. Ask about philosophy. It is important to make sure that the adviser has a similar investment philosophy as the potential client. Don't be afraid to ask adviser candidates hard questions to make sure that it is a good fit.
"When it comes to financial advising, there's more than one way to skin a cat," said Amir Eyal, chief executive of financial advisory firm Mylestone Plans. "Asking your financial adviser about philosophy with respect to investment management and financial planning will ensure you have the right match."
2. Ensure that the adviser fits what is needed. "Financial adviser" is a notoriously vague term. This is where it can get confusing.
Advisers can encompass a wide variety of roles: comprehensive financial planners; investment advisers; retirement plan specialists; and stockbrokers. The list goes on and on.
But these distinctions aren't arbitrary. A comprehensive financial planner, for instance, can provide vastly different information than an investment adviser, and the amount clients pay varies accordingly.