Geller Law
There are many thousands of financial advisors. There are many categories, with titles that include financial advisor, financial planner, investment counsel, investment executive, and the like. How is the consumer to choose?
Unfortunately, it is often difficult to distinguish a fast-talking salesperson from a solid professional. This is not only a fact of life in the financial services industry. It is true for virtually every profession and trade. Consumers should look for signs, both negative and positive. What follows is a list of suggestions. It is not comprehensive. It is not exhaustive. It is not foolproof. As with most interpersonal relationships, picking a financial advisor depends as much on common sense and good luck as anything else.
1. Qualifications:
2. Firm or institution:
3. Track record:
4. Referrals from a trusted source:
5. Internet searches:
6. Search for discipline by regulators and credentialing bodies
Warning: Do not be impressed by an advisor's claim to have access to better research, better investments, or better performance. The lowest quality advisors make these promises as often as do true professional financial advisors. Don't be impressed with titles like a director or vice president - these can be based on sales, not quality. Don't be impressed with the glamorous lifestyles, golf, wine, and dining, offered by many salespeople claiming to be professionals. Good financial advice does not happen in restaurants, golf courses, or other public venues - those meetings are all about sales, not service, and not quality.
If your advisor doesn't start with helping you pay down debt and save, then what value is the advisor? Anyone can buy stocks, bonds, ETFs (or their more expensive twin - mutual funds) online. It's the financial planning that adds value, almost never the product picking.
If the advisor drives a nicer car than you, ask: why is she/they/he wasting money on disposable items that don't retain value. Flashy lifestyles suggest poor financial acumen or a business model that takes your money from your pockets and puts it in the advisors.
