How to Choose a Financial Advisor

Imagine standing at a crossroads, each path representing a different financial future. Which way do you go?

In these moments, many of us wish for a wise guide, someone who can help us navigate the complex terrain of modern finance. But here's the twist – as Christians, we're not just seeking any guide. We're looking for someone who understands that our financial decisions are deeply intertwined with our faith.

Proverbs 16:9 reminds us:

"In their hearts humans plan their course, but the Lord establishes their steps."

This verse beautifully captures the delicate balance between our earthly planning and God's divine guidance. As you embark on the journey of choosing a Christian financial advisor, remember that you're not just selecting someone to crunch numbers – you're choosing a partner to help you grow as a faith financial steward.

In today's increasingly complex financial landscape, this choice becomes even more crucial. The right advisor can help you make decisions that not only secure your financial future but also honor God with the resources He's entrusted to you. It's about more than just growing wealth; it's about growing in faith and stewardship.

So, how do you find this rare combination of financial acumen and spiritual insight? How do you choose an advisor who can help you navigate both Wall Street and the narrow path of discipleship? Let's explore this together, grounding our search in biblical wisdom and practical insights.

The Importance of Financial Stewardship

Before we delve into how to choose a financial advisor, let's reflect on why financial stewardship is so important from a biblical perspective. The Bible has much to say about money and how we handle it:

1. Everything belongs to God: "The earth is the Lord's and the fullness thereof, the world and those who dwell therein" (Psalm 24:1).
2. We are stewards: "As each has received a gift, use it to serve one another, as good stewards of God's varied grace" (1 Peter 4:10).
3. Money can be a stumbling block: "For the love of money is a root of all kinds of evils" (1 Timothy 6:10).
   
4. We're called to be generous:  Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. ¹⁸ Command them to do good, to be rich in good deeds, and to be generous and willing to share. ¹⁹ In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life. 1 TImothy 6:17-19

With these principles in mind, let's explore how to choose a financial advisor who can help you manage your resources in a way that honors God.

Essential Qualities to Look for in a Financial Advisor

1. Attentive Listening

A good financial advisor should be an excellent listener. They need to understand your unique situation, goals, and values to provide tailored advice. Look for an advisor who:

• Asks thoughtful, probing questions about your financial situation and goals
• Takes detailed notes during your conversations
• Reflects back what you've said to ensure understanding
• Encourages you to share your concerns and aspirations

Remember:

"A wise man will hear and increase in learning, and a man of understanding will acquire wise counsel" (Proverbs 1:5).

2. Fiduciary Responsibility

It's crucial to work with an advisor who puts your interests first. This is known as fiduciary responsibility. While it might seem obvious, not all financial professionals are required to act as fiduciaries. Look for:

• A CERTIFIED FINANCIAL PLANNER™ (CFP®) professional, who is held to a fiduciary standard
• An advisor who is transparent about their fees and any potential conflicts of interest
• Someone who explains the reasoning behind their recommendations

As Proverbs 11:14 states:

"Where there is no guidance, a people falls, but in an abundance of counselors there is safety."

3. Clear Communication

Financial matters can be complex, but a good advisor should be able to explain concepts in a way you can understand. They should:

• Avoid unnecessary jargon or explain it when used
• Use analogies or examples to illustrate complex ideas
• Provide written summaries of your discussions and plans
• Be patient in answering your questions

"The heart of the wise makes his speech judicious and adds persuasiveness to his lips" (Proverbs 16:23).

4. Empowerment and Education

Your financial advisor should not just tell you what to do but should educate and empower you to make informed decisions. Look for an advisor who:

• Explains the pros and cons of different financial strategies
• Provides resources for further learning
• Encourages you to ask questions and be involved in the decision-making process
• Helps you understand the 'why' behind financial recommendations

"The wise lay up knowledge, but the mouth of a fool brings ruin near" (Proverbs 10:14).

5. Experience and Trustworthiness

While not always correlated, experience often breeds expertise. However, trustworthiness is equally important. Consider:

• The advisor's years of experience and areas of expertise
• Their educational background and professional certifications
• Client testimonials or references (if available)
• Your gut feeling after meeting with them – do you feel comfortable and trust them?

Red Flags to Watch For

As you search for a financial advisor, be aware of these warning signs:

1. Promises of Market-Beating Returns

If an advisor promises to consistently "beat the market," be wary. The future is uncertain, and no one can guarantee exceptional returns.

Proverbs 27:1 (NIV):

"Do not boast about tomorrow, for you do not know what a day may bring."

2. Pushy Sales Tactics

Be cautious of advisors who seem more interested in selling products than understanding your needs. A good advisor should offer solutions tailored to your situation, not push a one-size-fits-all approach.

3. Lack of Transparency

If an advisor is vague about their fees, compensation structure, or investment strategy, consider it a red flag. Transparency is crucial in building trust.

4. Ignoring Your Risk Tolerance

A good advisor should assess and respect your risk tolerance. If they push you towards investments that make you uncomfortable, they may not have your best interests at heart.

5. Failure to Discuss Tax Implications

Taxes can significantly impact your financial strategy. An advisor who doesn't consider the tax implications of their recommendations may be overlooking a crucial aspect of your financial picture.

The Often Overlooked Factor: Shared Values

While the qualities mentioned above are crucial, there's one factor that many articles on choosing a financial advisor overlook: shared values. As Christians, our faith should inform all aspects of our lives, including our finances. Here's why shared values matter:

1. Alignment with Biblical Principles

An advisor who shares your Christian values can help you make financial decisions that align with biblical principles. They can guide you in:

• Honoring God with your wealth (Proverbs 3:9)
• Growing in generosity (2 Corinthians 9:7)
• Creating a legacy that points to Christ (Proverbs 13:22)
• Using your resources to serve others (1 Peter 4:10)

2. Understanding of Faith-Based Goals

Christian investors often have unique goals, such as tithing, supporting missions, or leaving a legacy for ministry. An advisor who understands these priorities can help you achieve them more effectively.

3. Ethical Investing

If you're interested in aligning your investments with your values (sometimes called Biblically Responsible Investing), an advisor with similar values can guide you in this area.

4. Long-Term Relationship

Choosing a financial advisor is about building a long-term relationship. Shared values can provide a strong foundation for this relationship, helping you work together more effectively over time.

The Kingdom Advisor Difference

At Peak Financial Management, we believe in the importance of integrating faith and finances. That's why our advisors are not only CERTIFIED FINANCIAL PLANNER™ professionals but also Certified Kingdom Advisors® (CKA®).

The CKA® designation indicates that an advisor has:

1. Completed advanced training in biblical financial principles
2. Committed to upholding the highest standards of biblical wisdom and technical competence
3. Pledged to practice and teach biblical stewardship

This additional certification ensures that our advisors are equipped to provide financial guidance that aligns with Christian values and principles.

Making Your Decision

Choosing a financial advisor is a significant decision that shouldn't be rushed. Here are some steps to help you make an informed choice:

1. Research: Look for advisors in your area who have the necessary qualifications and align with your values.
2. Interview: Meet with several advisors to get a feel for their approach and personality.
3. Ask questions: Don't be afraid to ask about their experience, investment philosophy, and how they integrate faith into their practice.
4. Check credentials: Verify the advisor's certifications and check for any disciplinary actions.
5. Pray: Seek God's guidance in your decision. "If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him" (James 1:5).

Conclusion

Choosing the right financial advisor is about more than just numbers and returns. It's about finding a trusted partner who can help you steward your resources in a way that honors God and aligns with your values.

At Peak Financial Management, we understand the unique needs of Christians seeking to honor God with their finances. Our team of Certified Kingdom Advisors is equipped to help you align your financial decisions with biblical principles.

We'd love to talk with you about your financial goals and how we can help you achieve them in a way that glorifies God. Give us a call at (303-255-2252) or email us at info@peakfinancialmanagement.com to set up a conversation.

Remember, "The heart of man plans his way, but the Lord establishes his steps" (Proverbs 16:9). Let's partner together to create a financial plan that honors Him and helps you achieve your God-given potential.