The Right Financial Adviser
You're ready to invest, but you need some advice. Who do you turn to? Choosing the right financial adviser is critical. This is the person you need to trust with your money – and possibly your future financial stability. But picking an adviser can be tricky. There are thousands to choose from, with varying certifications.
Anne Osmer Reporting
You're ready to invest, but you need some advice. Who do you turn to?
Choosing the right financial adviser is critical. This is the person you need to trust with your money – and possibly your future financial stability. But picking an adviser can be tricky. There are thousands to choose from, with varying certifications.
Here are some tips on finding an adviser who's right for you:
• Get referrals. Ask family and friends for the names of advisers they use. Don't be afraid to get specific: How long have they known the adviser? Do they feel they get good advice? Does the adviser work for a company, or as an independent consultant? Consider factors that are important to you. Will you feel more comfortable sitting across from the adviser to discuss your finances and potential investments? Or are you comfortable with phone calls? Geography can figure into your choice.
• Be familiar with the various financial planning designations. Ask potential advisers for their credentials.
• Do your homework. Make sure potential advisers are who they say they are. Check the various associations and databases to see if they are members.
Certifications: Who is Your Adviser, Anyway?
There are numerous financial planning designations. You should know that some credentials involve far less training than those that require rigorous training. This is especially true of designations that target seniors.
Rigorous Financial Planning Credentials
Advisers with these credentials have undergone extensive training.
• Certified Financial Planner (CFP)
• Chartered Financial Analyst (CFA)
• Chartered Financial Consultant (ChFC)
• Certified Public Accountant/Personal Financial Specialist (CPA/PFS)
Credentials Requiring Less Training
Advisers with these credentials may not have significant training; some have completed less than a few days in the classroom.
• Certified Retirement Financial Adviser
• Registered Financial Gerontologist
• Certified Retirement Counselor
• Certified Senior Adviser
Source: The New York Times•The Michigan Office of Financial & Insurance Services regulates the industry and ensures all of the professionals and the products being sold are registered to conduct business in the State of Michigan. Toll Free Phone: 1-877-999-6442.
Resources for Researching Potential Advisers
• The Financial Planning Association has a tool called PlannerSearch that lists names of Certified Financial Planners and their areas of specialty. The Certified Financial Planner Board of Standards also has a list of Certified Financial Planners.
• Chartered Financial Analysts can be found on the American College Alumni Association Web site .
• The American Institute of Certified Public Accountants has a database of practitioners with the CPA/PFS designation.
• The NASD has a BrokerCheck database that lists NASD members. Under federal law, almost every securities firm doing business with the U.S. public is a member.
• The CFA Institute has a good article with planner designation information and additional information on what to look for in an adviser.
