Do not give custody of your assets to your advisor.Your advisor may make trades on your behalf, but do not give him/her custody.Custody means they have control of your assets.They can co-mingle them with other client funds or even their own money.When the advisor has custody, you may not receive a statement from anyone other than the advisor.
When you custody your assets at a separate firm from your advisor, you will receive a statement from the custody firm as well as your advisor.The statements should add up.You can custody your assets with a large firm like TD Ameritrade or other large discount brokerage firms and still work with a small local fee-only advisor to get the personal attention you deserve.
Get referrals.Ask your other professionals (CPA, Attorney, etc.) to refer an advisor to you.Ask the professional if they receive any compensation for recommending them.Only work with advisors who don't have to pay someone to recommend them.
Ask the advisor for references.Advisor should have some clients that would be willing to talk to you.Ask for names and phone numbers and call them.Again, these people should not be compensated for recommending the advisor.
Work with an experienced advisor.If your advisor has been around for twenty years or more, they will likely be able to provide references that have been clients for a long time. They have been through various market cycles, and have gotten the rookie mistakes out of their systems.They also have a reputation to protect, which means they will work hard to make sure you are happy.
Work with a Certified Financial Planner (CFP) professional who is a NAPFA Registered Financial Advisor.CFP is a minimum requirement.It is a series of course work in basic well rounded financial planning.It assures you that your advisor has had a basic education in most areas of financial planning or wealth management, and that they have had at least some real life experience.
NAPFA registration requires more education and continuing education; it requires that the advisor practices comprehensive financial planning, and a peer review of the advisor's work is required to gain membership.It also requires its advisors to be strictly fee-only to remove the conflicts of interest that exist when the advisor receives commissions for recommending products.
Financial Strategies, Inc. 13555 Bishops Court, Brookfield, WI 53005 262.821.1664 Jim@RetirementAndWealth.com Wealth Advisors: Unparalleled Experience...Uncompromising Care
