Where to look
· Ask friends and family you trust for advisors to interview
· Go on-line to NAPFA.org (National Association of Personal Financial Advisors) to search
· Go to CFP.com for education and Certified Financial Planner background checks
Questions to ask
· What is your experience? Look for a minimum of 5 years as a practicing CFP.
· Qualifications? What is your education & professional background?
· What services do you offer? Comprehensive financial planning or just investments?
· What is your investment philosophy? Can the advisor explain it in simple terms?
· How are you compensated? Do you take commissions? Fee-only or hourly planners are most preferable and transparent. Pay for advice, not products. Get proposals in writing.
· Are you a fiduciary? Will you sign a fiduciary agreement that states you will act in my best interests and without conflict?
· Who will I deal with? Do you have a team or will I deal exclusively with you?
· Do a background check at the CFP Board and Finra.org. Make sure there are no complaints or disciplinary actions in the advisor’s history.
Bottom Line - These are 3 traits to look for when interviewing financial advisors:
1. Ethical – Can I trust this person to act in my best interests? To behave honestly and be transparent in my dealings? Are they objective?
2. Competence – Does this person have a quality educational and experience background? Do they stay current with on-going education and have well rounded knowledge of comprehensive financial concerns? Will the advisor educate me?
3. Likeability – Will I enjoy dealing with this advisor? Is the advisor humble and a good listener? Or do they prefer talking about themselves and brag about their accomplishments?