Getting your finances in order and getting yourself ready for the future doesn't have to be a solo project. In fact, finding the right financial adviser can really help you make the most of your money, your time, and your investments. Having the wrong adviser can cause issues for you. Mark Redfield from Redfield Financial Group shares some of the things he thinks are important when it comes to picking the right person for you and your money.
1. The adviser should be acting as a fiduciary. This means putting the client’s best interest first. This seems logical, but unfortunately, does not always happen. This is a hot topic with the various regulators.
2. Choose an independent adviser. This arrangement allows for objective advice and is not product or commission driven.
3. Choose an adviser that practices a holistic approach which includes coordinating investments, risk management and insurance, tax advisers, and estate planning. Think of your adviser as a financial quarterback.
4. Choose a local advisory firm that has been in the industry for several years and carries the proper licenses for the areas you would like to work in. Look for both young and seasoned advisers for long term continuity of your relationship.
5. Be able to put a face to the adviser. The toll free 1-800 number or Robo advisers may not offer a long term solution and could become a revolving door of advisers that could lack continuity over several years.
6. Credentials can be important as well. It takes a number of years to obtain industry credentials. This shows a long term commitment to the industry. Chartered Financial Consultants (ChFC) and Certified Financial Planners (CFP) are two designations recognized in the advising field.
7. Do your research on the adviser to make sure that they have not had any disciplinary actions or fines. This is easily done on FINRA’s website under broker check. If there are any forms of disciplinary actions, be sure to ask the adviser about the actions and allow him to explain the circumstances behind the disciplinary action. Ask them how they have adjusted their practice to avoid future problems.
8. Ask the adviser how they protect your information and be sure there is a business continuity plan in place in the event of a business interruption such as a fire or a flood. Be sure there is a succession plan in place for the adviser you are working with in the event of the adviser’s disability or death.
9. Finally, find someone that you will like to deal with and can trust. The relationship will be a long one. You will be sharing very important personal information with the adviser and the relationship should last over the majority of your lifetime.
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