| A good financial advisor puts the client's interest first | | | | structuring (individual clients), taxation (small to |
| - understand their need, have an intelligent | | | | medium businesses), benefits package (large |
| understanding of their situation, and works hard to | | | | businesses and corporations) and other related |
| achieve what they hope to gain financially in a given | | | | financial issues as it relates to your situation. If |
| time period. He or she must be honest, trustworthy | | | | possible, get a financial advisor who has successfully |
| and demonstrates a sense of ownership to the | | | | worked on a client with a profile or need that is |
| client's business and their finances, as if losses that | | | | similar to yours. |
| may be incurred would be a personal loss to them as | | | | 3. Compensation - Some investments and finance |
| well. With these values intact in your financial planner, | | | | experts view the source or bulk of the financial |
| you can rest assured that your net worth is well | | | | advisor's income as the determinant on where his or |
| taken cared of. | | | | her loyalty and focus lies. As such, it is wise to hire |
| There are four major areas by which to gauge how | | | | fee-only financial advisors, who do not receive |
| qualified and competent financial advisors are: | | | | commissions from investments and financial products |
| 1. Credentials - The eligibility of a financial planning | | | | their clients purchase. While it is not entirely prohibited |
| professional in the United States is reviewed and | | | | to sell or have interest in the purchase of some |
| affirmed by the Certified Financial Planner (CFP) Board | | | | properties or assets, an individual who services |
| of Standards Inc. The certification the board issues is | | | | financial planning needs of another person and have |
| the recognized standard of excellence for financial | | | | direct access on how to fulfill those needs need |
| planners. This certification ensures that the financial | | | | (read: doubles as a sales agent) may have a |
| planner met the CFP Board's requirements in terms if | | | | questionable credibility when it comes to providing |
| education and experience, and that they adhere and | | | | you with realistic investment options. |
| abide by the CFP Code of Ethics. Do your | | | | 4. Character - Many financial handbooks forget to |
| background checking and online searches, beginning | | | | include character as an important factor in |
| with the Financial Planning Association (FPA) database | | | | determining the competence and success of a |
| at fpanet.org. | | | | financial advisor, yet this could prove to be the most |
| 2. Experience - Look for a financial planner with at | | | | important gauge of all. Observe the individual's |
| least four years experience in the field of | | | | corporate and personal values. Does he or she listen |
| professional financial advisory. This length of service | | | | to you when you lay down your financial concerns, |
| and exposure in the financial industry should be | | | | including the drama that goes with it, if any? Does he |
| enough for your financial planning professional to | | | | or she seem impatient, cuts you off and appears as |
| know how the industry works, established his or her | | | | a smart-Aleck? Ditch the guy or gal right away to |
| network of contacts and became well-versed in | | | | prevent you from future problems. On the other |
| putting the client interest first. Casually check the | | | | hand, if the financial planner is accommodating, listens |
| financial planner's expertise and knowledge in areas | | | | well, empathize and sympathize, you may have a |
| where he or she services financial planning: portfolio | | | | gem of a financial planning professional. |