Important Criteria
Your goal is to select the advisor who represents the highest probability of helping you achieve your financial goals. There is a lot of information that will help you pick the right advisor. Some of the information is critical, while other information is less important. This page describes some of the most important information you should obtain from advisors.
Competency
You are paying an advisor for knowledge that will help you achieve your financial goals. Therefore, advisors must be able to prove, beyond a shadow of a doubt, that they are credible, sophisticated investment experts.
- Years of financial experience
- Years of experience in core competencies
- College degrees or years of college
- Certifications that require real work and monitored examinations
- Memberships in associations that have continuing education requirements
- Currently provides the same services to a large number of clients who are similar to you
Ethics
What's the value of advice that you can't trust? Advisor ethics are every bit as important as knowledge.
- Clean compliance history (SEC, FINRA
, State Agencies)
- Registered Investment Advisor (RIA) or Investment Advisor Representative (IAR)
- Acknowledged fiduciary
- Full disclosure for all credentials that impact knowledge
- Full disclosure for ethical history
- Full disclosure for all forms of compensation
- Full disclosure for all potential conflicts of interest
- A willingness to provide all information in writing
Business Practices
The advisors' business practices will help you achieve your financial goals by putting your interests first.
- Method of compensation - should be fees like other professionals
- Sophisticated wealth management services
- Effective services that manage your exposure to risk
- A strategy for managing investment expenses so you maximize your net returns
- Availability for face-to-face meetings
- High quality, quarterly performance reports
- Communication during down markets
