Finance Guides

First, is the advisor experienced? When meeting with the advisor for the first time, you will want to ask how long they have been in business, the types of clients they typically handle, and the breadth of experience they possess. Although your issues may not seem overly complex, you may not be fully aware of all the strategies available to employ. Challenges facing seniors can be especially tricky, make sure you are not the advisor’s guinea pig. Many novices present public seminars with only have a very basic knowledge of tax and estate planning issues.

Second, as mentioned earlier, what is your advisor’s educational background? Look for bonafide credentials such as ChFC, CFP, CPA, CLU, JD, or other legitimate credentials. These signify background in investments, taxation, estate planning, finance, business, insurance, law, economics, etc. and require comprehensive examinations from accredited educational institutions, years of experience, and advanced continuing education requirements. Beware of those that solely have one of the many “quickie” designations proliferating these days.

Third, has the advisor shown a true commitment to ethical behavior? The advisor should hold a membership in a least one financial industry association that requires a code of ethics. Such associates as NAIFA, Society of Financial Service Professionals, IBCFP, FPA, etc enforce ethical behavior. You should also beware of advisors that use their affiliation with trusted organizations as the sole basis for their ethical behavior (churches, community centers, etc.)

Fourth, is there a commitment to continuing education? Complex laws are ever-changing and the economy never holds still. How many hours are spent each year keeping skills sharp? Are the continuing education hours at a beginning, intermediate, or advanced level?

Fifth, does the advisor handle the services you need? Consider whether you need comprehensive financial planning, tax planning, or investment advice. Will you need help with securities, or simply need someone to give tax advice? Is the planner simply an insurance salesman? Find the consultant that specializes in the services that you need.

Sixth, is your financial planner a solo-practitioner? What kind of support team does the advisor have to bounce ideas off of, and to provide additional perspective? Is the firm large enough to provide all of the resources you should expect from your planner?

Seventh, what is the advisor’s average client like? Do you fall into the range of his typical client, and if not, will you receive the attention that you need? Would someone else at the firm give you better attention? What is the general demographic that the advisor primarily works with (seniors, pre-retirees, young couples, etc.)? You want to make sure that your unique needs will be met.

Eighth, how is the consultant compensated? The three most common planning types include: fee-only, fee-based, and commission only.

Finally, is your planner a professional? Be careful of planners that are running their operation out of the back of their car, lack memberships or designations, only work part-time, or mock those that commit to high standards. These advisors are often smooth talkers that will downplay the importance of the attributes that they lack. These individuals may be charming and present

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