Finding Advisors
There are only two ways to come in contact with advisors - either they find you or you find them. The easy way is to select an advisor who finds you. You listen to a sales presentation, make your selection decision, and you're done. The path may be easy, but it's also exceptionally risky because there are multiple risks that are hidden from you.
Finding your own advisor can take more time, but the small amount of extra time can produce huge dividends because you will have increased financial security for the rest of your life.
Advisors Who Find You
Advisors who find you are almost always sales representatives. High quality professionals don't market their services this way. Sales representatives have limited knowledge, numerous conflicts of interest, and they are paid commissions to sell you investment and commission products. They are not paid to help you achieve your financial goals. These characteristics make them very risky choices if you select one of them to be your advisor.
Sales representatives have several tactics for finding you.
- Telephone solicitation
- Direct mail to your home or office
- Affinity marketing (they join organizations to meet you)
- Seminars that offer "free" information
- Advertising that includes inducements
- The 'free' lunch
- Work for brand name companies
Don't be fooled by their tactics, offers, or employers. Their real goal is to meet you so they can sell you their products
You Find Advisors
The superior solution is for you to find the advisors. This works because high quality professionals use one or more of the following alternatives to market their services.
- The Internet - The Internet is an excellent resource as long as you know the motives of the website operator. You want an objective site that has high standards and no potential conflicts of interest. At the risk of sounding self-serving, we believe the Paladin Registry fits this description.
- Referrals - Most high quality professionals only work on referrals. That's the good news. The bad news is you have to "know" you received a referral from a trustworthy source who knows the difference between high and low quality advisors. The most frequent referral sources are CPAs, attorneys, associates, and friends. Be a little cautious. Some CPAs and attorneys market financial services and they may limit their referrals to inhouse advisors.
- Associations - Organizations that have certification programs, high ethical standards, and continuing education requirements are also a way to find quality professionals. Be a little cautious. Some associations are the equivalent of diploma mills (advisors buy their certificates) and they will refer you to any member regardless of quality.
