Here are enclosed four handy ways through which you can evaluate the quality of professional adviser with whom you are going to deal with your post-retirement issues.
A financial adviser can prove beneficence or misery but depends upon the right choice. They have a much larger impact on your financial dealings. It is wise to consider that financial advisers are not all the best in their fields. They are not fully equipped with the knowledge to guide you to best in financial matters. Their claim may not be on par with their output. It is a major decision choosing a financial adviser because you are going to entrust all your monitory worries to him. Some advisers are very mediocre in their field and the money they earn is through commission which they get from both parties.
We have worked out fourdifferent tricks through which you can opt out between a number of advisorsbased on their professional credibility.
Looking for the Background
The very first step inverifying the credibility of an advisor to knock the doors of various regulatoryboards with which they are registered. There are entitled 65 or 66 licenseswith each advisor by the Financial Industry Regulatory Authority (FINRA). Itcan prove much beneficial as these boards keep a complete record of all theirprofessional career.
The investment advice canalso be taken from two primary bodies-registered investment advisors (RIA) orinvestment brokers. RIAs are licensedorganizations by the financial services industry who was the legal right tohelp the client to choose the best. Securities and Exchange Commission (SEC)has the responsibility to look after the matters dealt by RIA. Advisors who areperforming their duties through these boards are known as investment adviserrepresentative (IAR). On the other hand, brokers which are registeredrepresentatives are held at less suitability standard. They are responsibleonly for selling the deals to their clients which are suitable for them, notnecessarily the best.
There is a complete recordavailable with FINRA about unlicensed or corrupt financial advisers. The generalpublic is allowed to have access to this information via FINRA’S BrokerChecker. Itincludes information like years of experience, reviews, and any dishonestydisclosure. The SEC provides theservices through a platform known as Investment Adviser Public Disclosure.
Checking the Credentials
If a person entitleshimself as a financial adviser then it does not mean that he is equipped with thebest knowledge to guide you through that. He may not be the best person to givefinancial advice even if he has chosen some industry related terms in hisportfolio which may seem very professional. The best example which can be quotedin this place is CFP Board’s commercial presenting a music DJ as a financialadviser. It is quite easy for any layman person to trick financially uneducatedpeople with industry jargons to prove that they are best advisers. They evenwould not hold the legal degree or necessary qualification for that.
The credentials present onportfolios of experienced advisers are time proven. They are certified byboards and qualify the person as the one who has enough knowledge and criticalthinking ability to see beyond the curtains and give the best option out of variousavailable. Various honor badges are very difficult to earn and requireexperience and necessary education regarding the subject matter so that theycould prove that they are equipped with modern demands.
There are different categories designed with peculiar features. It is very important for you to know which suits the best as per your requirements. You should have little background knowledge about each category to set them at different levels of qualification to your demand. Certified Financial Planner (CFP®) is the most appropriate designation for many investors. The individuals registered with this category has the proficiency in all aspects of financial planning and they are bound to give quality services by a code of ethics and professional responsibility standards of the CFP Board.
As another example, wehave the Chartered Financial Analyst (CFA). He is bound to qualify for threeexams and provide 3 years of working experience. They must present theattributes like professional ethics, professional integrity, competency,meeting ethical standards, portfolio management, economics, and securityanalysis is his professional dealings. Financial advisers under the umbrella ofCFA are not so much involved in financial advisory and planning. Rather theyare found working in money adjustments and stock analysis.
Look for Awards and prominent recognitions
If the portfolio of an adviser is studded with various honoree certificates, awards and industry icons then it is verified that he is far beyond excellent then his co-workers in his field. A well known and reputed award in this industry is InvestmentNews 40 Under 40, which highlights the professional credibility. It is a plus point for those individuals who are new to this field but have earned this through their hard work and commitment level.
In addition, Forbes presents a Best-In-State is a list of reputed advisors which are being categorized by their state and their assets in the possession or in the pipeline.
Not allcertifications and awards are well reputed. It is a wise decision to make aninvestigation about the reputation of the award or honor title. Many awards canonly be of superficial importance. You must stop instantly when you find anadviser who is camouflaging his original personality through these bogusawards. It is a red signal for you to stop and look for someone else who ismore recognized and reputed in his field.
Looking for thought leadership
There can be anumber of financial advisors who are on board carrying the board’s signs whichare an indication of qualifying them a legitimate person in their field. Butthere are only few who are time proved and true thought leaders. They haveproved their value over time by having appropriate knowledge, professionalattitude. They are well aware of their job and the considerations to lead theirclient to the best. They are taken as a role model by other financial adviserslook up to their financial advice in their dealings which qualifies them as athought leader.
You do not have to struggle a lot by going through various financial planning news in identifying the profile as a thought leader’s profile. You can simply do online research via website or newspapers to check the reviews of people about some particular financial adviser. If he is well quoted in various places in various local, national and international news then he is the right person to cling on. Make sure that the link you are following is established official news. Do not go after the paid advertisement.
These days, you can findinvestment and financial advisers everywhere on the road with many chanties andpromising deals that you can get trapped by them. It is your responsibility todo responsible research to get the best financial adviser as per your need andfinancial goals. Spending a little time and extra research can save you fromscams and financial loss.