Even with do-it-yourself investing on the rise, plenty of Canadians still feel more comfortable making investment decisions when there's a financial adviser seated across the table.

So how do you select one? The short answer is: carefully.

Many people start with referrals from friends or family, said Tom Hamza, president of the Investor Education Fund.

That gives a good idea of an adviser's style, but it doesn't answer a crucial question.

"The real problem is that people may have good feelings about the adviser but they don't have any idea how they've done, and that's the measure that you ultimately need to use," said Hamza.

Interview several advisers, and ask questions about their style and what services you can expect to receive.

"You are hiring them to look after arguably one of the most important things in your life. You are trusting your wealth to this person to manage on your behalf, " said Michael Walker, vice-president and head of branch investments at Royal Bank of Canada.

Keep in mind that the training and education of people who call themselves planners varies.

Make sure any financial planner you work with has one of the following designations: Certified Financial Planner; Personal Financial Planner; Chartered Financial Consultant or Registered Financial Planner.

A recent poll by Sun Life Financial found that those who get professional investment advice tend to be more confident - 86 per cent feel they are making better decisions about their finances.

The survey also found that only 37 per cent of those with an adviser said they now expect to work longer than originally expected due to the recent stock market downturn, compared to 48 per cent without an adviser.

"What we heard from Canadians is that financial advice is important but they don't always know how to get it, " said Kevin Strain, senior vice-president of individual insurance and investments at Sun Life Financial.

Sun Life has a new feature on its website that matches clients with a Sun Life financial adviser.

You enter your location, age, life stage and other preferences, and the site responds with as many as 12 potential matches with a brief summary of each.

"You're really trying to find someone who can make a connection with you and give you advice on health insurance, life insurance and wealth management, and someone who can nurture that relationship over a long period of time. The site is really trying to create that link, " Strain said.

Ask your adviser: how he or she is compensated, whether it's a salary, a fee for specific services, sales fees and commissions or a fee based on the amount of assets under management.

The adviser you choose will help you develop a financial plan. It serves as a snapshot of your current situation, but also gives a road map for where you want to be in the future, whether you are saving for a new car, a new home, education or retirement.

"You may end up with a few detours because life may throw you a few curves but the plan is a living, breathing document that you and your adviser can use to help you get back on track, " Walker said.

Find out how often you will get together.

This is crucial so that you can update your adviser on any significant changes in your life.

That will also be a good time to find out how well your investments have done.

Your adviser should explain how your investments performed when compared to an appropriate benchmark, and how they have performed over the last five years.

"If they're gong to be managing your investments, they should be telling you how well they're managing them, " Hamza said.

Now you need to ask yourself a few questions: do I trust this person, does he or she understand my financial goals and is this financial plan we've developed right for me?

Of course, steer clear of anyone who is making guarantees about investment performance, or any promises that sound too good to be true.

"There isn't an adviser out there who's going to have a magic wand to predict the market, " Hamza said.

"They're your quarterback because they can see the field and see how the market movements fit into your financial plan.

"They also have to be the coach who's steering you away from bad decisions, the typical emotional decisions that many investors make."

Reproduced with permission - Torstar Syndication Services