Putting someone in charge of your finances is not something that should be taken for granted without a proper vetting process. Indeed, as Jane Grant, a certified financial planner at Perryman Financial Advisory, notes: Trusting a professional with your finances is the equivalent of trusting your doctor with your health—it’s a must. And that means looking at their background and qualifications, experts say. ,You can use this tool to match you with a planner that meets your needs.,
The simplest and easiest way is for an individual to do their due diligence when researching a potential financial advisor. Investment Advisor Public Disclosure Website or third party websites such as . Through broker checkLouis Strohmayr, a certified financial planner at Octavia Wealth Advisors. It also allows individuals to search the consultant’s registration records to ensure that the advisor they are considering does not have so-called disclosure incidents, including “being distorted, having a client complaint or engaging in suspicious activity.” Being involved is getting involved,” says Strohmayer.
With tools like these, Strohmayer says there’s no need to spend the money to engage a search firm to complete an official background check. “If you want to know a little more about the consultant before joining the interview process, it is advisable to do a deep dive through checking their registration history, as mentioned earlier,” Strohmayer says.
Many individuals seeking financial aid will likely want a certified financial planner (CFP) or, if you want help with taxes, a certified public accountant (CPA), as Businesshala Picks recently reported: and “Just because someone says they’re a financial planner doesn’t mean they’ve taken the exam that qualifies them to be a certified financial planner or CFP. They may have other licenses, such as Series 7, Which allows them to sell financial products, but it doesn’t.” Look for financial advisors’ licenses and years of experience at brokercheck.finra.org and double-check CFP credentials on cfp.net. ,You can use this tool to match you with a planner that meets your needs.,
Do these checks whenever you’ve been referred to a financial advisor by a friend or family member, says John Loper, CFP board certified financial planner and managing director of professional practice. Loper says, “In conducting your background check, initially you want to make sure you capture a financial advisor’s public disciplinary history, qualifications and credentials, years of experience, and other licenses they hold. ” What’s more, if you find something that doesn’t look good, dig deeper. Indeed, if your potential advisor has been reprimanded or is facing litigation, Grant says it’s “a big, red flag.”
Even if their record is clean, you should work a little harder. Experts say that some of the most valuable insights you can gain on a financial advisor actually stem from the interview process. Here are 15 questions you should ask any financial advisor you choose to hire. In addition to those questions, there are other surprising things you’ll want to check out, including their social media and these other items. And finally, go with your gut: If it doesn’t feel right, don’t. ,You can use this tool to match you with a planner that meets your needs.,