How do i find an excellent financial advisor?
Question:
Answer:
Get references from people who have an adviser. A personal reference is more valuable than a name in a publication. Make sure you get references from people who are financially savvy. The naive may simply refer you to an adviser who has flim-flammed them.
Then look into each potential adviser's background, method of receiving compensation and general money management philosophy. Look for a fee-only adviser, who takes compensation only from his or her customers. You want to be the only person paying the adviser because that way, you get the adviser's loyalty. Choose someone with whom you think you will be compatible, in terms of investing and money management philosophy. An adviser who is a registered investment adviser has fiduciary responsibilities toward you (meaning he or she has to put your interests first). So look for someone who is a registered investment adviser. See the webpages below for more details.
Just as with any other professional there are various ways of finding someone whose skills and experience are suitable to your needs. Before contacting any prospective adviser, create a list of names and make note of where you got their name from. Good sources of referrals include the following:
Colleagues at work or those in a similar line of business
Look for people in your industry at a similar career stage and personal situation as yourself (e.g. age, marital status, number of children, etc). Some advisers specialize in working with clients in a specific profession, like teachers, dentists, or individuals who are self-employed. These advisers will have a better understanding of the unique nature of that business as it relates to their client and may be better able to address the challenges or opportunities created by their profession. Ask colleagues at work, or, if your profession is represented by a professional association, contact them about a referral.
Ask another professional you work with such as a lawyer or accountant. Many professionals are part of a referral network which may include financial advisers. Since your lawyer or accountant likely has a good understanding of your personal financial situation and needs, they may be able to put you in touch with an adviser with complimentary skills.
Read local newspapers for ads or seminars being presented by financial advisers. Local newspapers are an excellent source for names of advisers working in your community. Look for seminars being presented on topics relevant to you and if possible, attend them. This is an excellent opportunity for you to meet a prospective adviser and see whether his or her personality and approach are consistent with yours.
A variety of financial association web sites. Many of the professional associations related to the financial industry have web sites that provide a wide range of investor resources, including some which provide listings of advisers and dealer firms. One way investors can find a qualified investment professional in their area is to contact these organizations. It's important to note that these associations do not provide an exhaustive list of all financial advisers, but rather individuals or firms who are registered with that particular association.
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