Choosing a financial advisor can be the best - or worst - thing you ever did. There are many people out there who call themselves financial advisors, but are they trained and licensed to do the job they claim to be good at? And are they a good fit with you personally? Even if the financial advisor you choose is good at his job, if he has a personality that clashes with yours, you won’t find it comfortable or pleasant working with him.

The main thing to remember is not to use Uncle Joe or Grandpa as your financial advisor - unless they are trained and experienced in doing the job. Even so, they may not be objective enough when it comes to your investments, simply because they are close to you.

A financial advisor can guide you through a maze of laws, rules and regulations on all kinds of topics to do with finance. His expertise about retirement plans, superannuation, insurance, income and family taxes will be invaluable. But before you choose your financial advisor, you need to find out a few things about him.

You need to know if he has the kind of good track record that comes with experience. A financial advisor can be highly trained and have all the right certification, but unless he also has a proven track record of giving successful financial advice, then you don’t want him touching your finances.

You also need to find out how your financial advisor gets paid. If he is paid commission from the products he advises for you, then you cannot be sure that they are truly the best ones for your situation. He could want you to have them because he gets paid a great commission from selling them. Even if a financial advisor claims to be fees-based, that doesn’t mean he is totally paid by fees. It could be that his remuneration is only part fees and the other part is commission.

Another consideration is what you actually want your financial advisor to do. If you have a specific problem such as estate planning for him to sort out, then you need to choose someone who is well trained in that area; if you have tax questions an insurance advisor would not be the best person to ask.

To find the best financial advisor, start by asking your friends and family whom they use. You can also ask other professionals that you trust whom they would recommend.