How should you choose a financial adviser?

Many service providers present themselves as financial advisers despite having no training in the field. In finance, choose an adviser with proven experience and qualifications. What is a financial adviser? How do you choose one? What training is required, and why use a financial adviser at all? This short guide addresses these questions and more.

What is a financial adviser?

A financial adviser provides advisory services to companies, families and individuals to improve their financial management. Advisers support, guide and advise clients, teaching them how best to manage household or business finances.

What training does a financial adviser have?

In Israel, advisory work is not subject to regulation, so anyone can declare themselves an adviser. This allows people without any training to present themselves as advisers on various sensitive subjects, including finance. When choosing a financial adviser, check that the person has academic training in a financial discipline such as accounting, business administration or a related field. Someone trained in these areas usually receives comprehensive instruction covering legal, advisory and taxation aspects. Also check that your adviser has not only professional training but experience solving financial problems for families and individuals as well as companies and businesses. Previous work as a manager in the field or as an adviser at a large company is certainly suitable and relevant experience. If the adviser also says they completed a business consulting course at a recognized, respected institution, that is another positive sign.

Alongside these advisers are people who describe themselves as coaches or business coaches. They usually have no training in economics, so their advice is limited to the emotional side: helping you articulate your goals and motivating you to succeed. These distinctions matter when choosing a financial adviser. Leave your finances to someone who knows what they are doing.

What types of financial advice are available?

There are different types of financial advice and financial advisers. An adviser can provide services in several ways: advice on a specific subject or area, advice on several subjects with support over multiple meetings, or ongoing financial advice.

How are financial advice fees calculated?

Naturally, a financial adviser's fee depends on the service requested by the client. Other factors also enter the calculation, including the complexity of the subject, the adviser's years in practice, professional training, experience, reputation and more.

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