Here are some tips when you want to engage a financial adviser:

1. What is the purpose of seeking an adviser? You need to be clear in your objectives.
2. Find an adviser who is minimally authorized to advice both in insurance and investment. These are the very important pillars in financial planning. Without either of these two licenses, you are going to waste your own time.
3. What is the main business of the company? Is it mainly in insurance? Is it mainly in banking? Is it mainly in investment? Select the firm that meet your objectives (refer to point 1)
4. Is the firm restricted in its product selection? Can it recommend products from multiple manufacturers or it is strictly to only one?
5. How is the adviser compensated? Is it commission-based? Is it hourly fee? Must the adviser sell you something before he earns?
6. Run away from adviser who says that he does not charge you anything. He is saying that he works for free. Such an adviser is either lying (thus you should not trust him) or he does not understand the meaning of cash flow. Without earning an income (since he works for “free”), he is in negative cash flow and eventually he will go bankrupt. Do you want to do business with an adviser who does not even understand the meaning of positive cash flow? All advisers are compensated in some ways (refer to point 5)
7. If your objective is such that you know you will never going to buy any product, you have no choice but to engage an adviser that charge a fee (fixed fee or hourly charge).
8. What is his sales quota? If the sales quota is ridiculously high, you should not engage him because he is pressured to sell something.
9. Does the firm provide him with on-going training? If no, run away from the adviser because he is a solo person.
10. You need to be satisfied that the adviser is competent and knowledgeable.
11. Run away from adviser who says he knows everything. This is impossible. Rather it is more important for an adviser who knows where to get information if he lacks a particular knowledge.
12. Ask what kind of market does the adviser targets? Is his market to housewife? Professionals? Retirees? Businessowners? Taxi drivers? If he says he has no market, run away from him because he is trying to be an adviser to everybody. As the saying goes, jack of all trades but master in none.
13. When making any purchase of products, does the adviser disclose to you all fees you have to pay? If he tends to downplay this, you should be careful.
14. Do you feel comfortable when you talk to him? If you feel you cannot “connect” with your adviser, you should look for someone else. Financial matters are very personal matters – you should be comfortable with the person whom you are sharing your information with.