That’s why we were happy to talk to financial writer Robyn A. Friedman, as she compiled 5 top tips for selecting the right advisor (you can find Robyn’s entire article in the December 2016 City & Shore magazine).
Here’s Robyn’s summary of the 5 essential items to look for in an advisor:
1). Check credentials. Your advisor should have a rock-solid basis of personal finance and investment credentials. Look for top designations like the CFP® (Certified Financial Planner™) mark, proving that your advisor has the education, experience, ethics and exams needed to guide you properly.
2). Confirm competency. “Make sure your potential advisor is skilled in the areas most important to you,” says Robyn.
3). Understand how your advisor gets paid. Compensation structure is important, so don’t be shy about asking your advisor how he or she gets paid. The trend now is strongly in favor of fees to avoid conflicts of interest from lucrative product commissions.
4). Ask about other clients. Select an advisor who understands your needs and works with other clients like you.
5). Establish rapport. You and your advisor need to work well together. “Your advisor needs to understand your life and what’s realistic for you,” says Robyn.