Somebody asked me the other day, “If you had to go hire a financial advisor for yourself, what are the first couple things you’d look for?”
I think this is a great question—first because I have a financial advisor! I think most people are too close, too emotionally attached...so I have a coach to help me see what I can’t. Second, I’ve always maintained it’s really easy to get started searching after you decide what you want:
1. Do you want a fiduciary, somebody legally and ethically required to put your interests before theirs?
-Your advisor should have a Series 65 or 66 license, and/or a credential that requires that behavior, like the Certified Financial Planner®️(CFP) marks.
2. Does the advisor have experience commensurate with your needs?
-If you’re just graduating college, you probably don’t need somebody with 15 years’ experience. If you’re mid-career or own a business, you absolutely do. If you’ve got complexities, you need applicable experience.
3. What’s on your advisor’s permanent record?
-Go to brokercheck.org to check your advisor’s disciplinary past. Somebody in business 20 years probably has some history—I’m not espousing only perfect records...but...is there a pattern? Are there many, very large settlements? I wouldn’t expect every advisor to have a perfect record, but I also would give extra thought to working with somebody that has a checkered past.
4. Can you (and your spouse) work with this person for the next 20 years?
-You’re going to spend a LOT of time (I hope!) working with this person. Can you get along? This is where a strong personal recommendation comes in, and a meeting where you can sit down, chat, talk about costs, expectations, responsibilities. Do you get a good feeling about this person?
Congratulations on making the decision to not only work towards your financial goals but also making the decision to hire a coach. Good luck with your search, and if you ever have any questions about hiring an advisor or advisor relationships, email or call me—I’d be happy to help.
-Tim Randle