| With so many financial advisors trying to woo you | | | | with an exhaustive clientele. Make sure that you |
| with their qualifications and experience, how do find | | | | choose an advisor who is compensated on a fee-only |
| one you can trust your finances with? 'Trust' is the | | | | basis rather than on brokerage commissions. Advisors |
| keyword here, as you will depend on him/her for | | | | who work on commissions are obviously placing their |
| your future financial security. A good financial advisor | | | | own financial gains above your efficient financial |
| can help you determine which investments are best | | | | management. They may recommend frequent and |
| suited for you, based on your financial goals. He/She | | | | unnecessary transactions to derive benefits from |
| will also be able to help you with a savings program | | | | them. |
| to build your assets. | | | | Your advisor should be able to understand your |
| First and foremost, identify your own needs i.e. your | | | | investment style and risk tolerance. He should have |
| risk-tolerance, insurance needs, taxes and whether | | | | the experience and the knowledge to accurately |
| you want short-term or long-term benefits. Once this | | | | supervise your investments. Someone who has |
| is done, choosing a financial advisor becomes easy. | | | | counseled clients and experienced market fluctuations |
| Seek references from your friends and get inputs | | | | will never let you down. If your advisor has started, |
| about their own experiences. You then need to | | | | managed or owned a business, he/she will have |
| interview the advisor and ask him questions about his | | | | experience that might benefit you. In some cases a |
| experience, track record, services provided, | | | | formal educational background compensates for a |
| investment approach and educational credentials. | | | | lack of practical experience. But, in any case, it is |
| Gauge your level of comfort with the advisor as you | | | | important that a your advisor works in a team and |
| are looking for a long-term relationship. Never hesitate | | | | has experts to fall back on. |
| to ask whatever is on your mind; however foolish | | | | Finally, find out if the advisor has any complaints or |
| the questions may sound. Always remember that it is | | | | disciplinary actions on file. For brokers and securities |
| your money and your future. | | | | firms, call the NASD's Public Disclosure Hotline and to |
| Ensure that your financial advisor has the time to | | | | check on Registered Investment Advisors, call the |
| meet you frequently, perhaps once every three | | | | SEC's Investor Education Hotline. Be careful that you |
| months and explain everything you need to know. He | | | | don't handover your hard earned money into unsafe |
| She should be able to provide you with a quarterly | | | | hands. Above everything, use your own judgment. If |
| assessment and advice you on any change in | | | | you want your finances to flourish with time, it is |
| strategies. To get this one-to-one personal | | | | essential that you choose the right advisor. |
| advantage, select a smaller firm than a larger one | | | | |