Expert Advice Tip Sheet -- Picking A Financial Planner -- OnlineOrganizing.com

You Are Here: Home - Expert Advice - The Organizer's Toolbox - Tip Sheets

NEW! - Keywords For This Page: Finances - Accounting - Bookkeeping

	Picking A Financial Planner

	By Linda Berggren

Feel free to use this tip sheet / checklist as you tackle your own ""do-it-yourself"" organizing projects. If you would like to REPRINT or DISTRIBUTE this information, please click here for reprinting instructions.

BACKGROUND

ask for a resume or CV
look for a college degree in accounting, finance, business, or law
ask how long the advisor has been in business
look for at least 10 years of experience

CREDENTIALS

there is no licensing for financial planners
look for a Certified Financial Planner designation
must be registered as an investment advisor with the SEC
ask for the advisor's CRD number (Central Registration Depository)
use this number to contact the National Association of Securities Dealers
1-800-289-9999 or visit their website at www.nasdr.com
ask for a free report of employment background and any previous problems
ask for five references you may contact

FOCUS

ask about your advisor's investment philosophy
which investment vehicles he / she prefers and why
criteria for choosing investments (track record, fund manager, etc.)
interpretation of past performance when evaluating stocks and bonds
what kind of research the advisor does on new products
philosophies and practices relating to risk-tolerance
specialized focus (certain professions, incomes, family composition, etc.)
how frequently you will meet (should be at least quarterly)

HOW YOUR ADVISOR IS PAID

commission based get paid when they sell financial products
can also make money whenever they trade for you (buy or sell)
earn a percentage of the transaction or of your investment balance
tend to spend less time planning for your future
may suggest more costly investment vehicles
flat fee means the advisor is paid only for his / her advice
do not make money when you buy or sell
no conflict of interest and more attention to what you really need

Linda Berggren is a CPA with Gifford, Hillegass, and Ingwerson. For more information, go to the GH&I website at www.ghi-cpa.com.

Would you like to reprint this tip sheet in your publication -- or distribute it to a wider audience? Click here for reprinting instructions.

Click here if you would like to submit a tip sheet or checklist...