Tips That Help You Select the Best Financial Advisor
From: Paladin Research
There is a right way and a wrong way to select a financial advisor:
• The right way: You control the process you use to select an advisor
• The wrong way: You let the advisor control the process
The wrong way creates a major, hidden financial risk. When you let financial advisors control the process there is an increased risk you will select the advisor with the best sales skills versus the advisor with the best credentials, ethics, business practices, and services.
You may have already experienced the impact of the wrong way if you have terminated an advisor who created high expectations in the sales process and failed to meet those expectations.
Tip: You have to control the selection process so you get the information you need to make the right decision.
Getting the Facts
It is vital to obtain facts about advisor credentials, ethics, business practices, and services. This is the information that impacts their competence and trustworthiness. However, gathering that information can be a challenge. You have to:
• Ask the right questions
• Know good answers from bad ones
• Know how to verify the accuracy of information
• Know where to go to view public information
• Understand some financial terminology
Your best sources for public data are FINRA.org, SEC.gov, BBB.org, and your state’s securities and insurance commissioners.