The Heller School for Social Policy and Management, Brandeis UniversityNational Program on Women & Aging
Five Key Tips on Choosing a Financial Advisor
Before you trust someone with your finances...
1. Get recommendations and references -- then check them out.
Who has provided quality financial planning services to your friends, family, or associates? Find out how they define "quality." Get at least three references from clients of the financial advisor you identify, then speak with them about their experiences working with the advisor.
2. Ask a lot of questions.
Remember, there is no such thing as a stupid question. Don't be afraid. There are plenty of good resources that provide lists of key questions to ask. Ask them all. Make sure to interview two or three planners before making your choice.
3. Check out the professional training, credentials, registrations, and legal standing of anyone you select.
To cover all bases, make four important phone calls to get the information you need: the Securities and Exchange Commission (SEC), the National Association of Securities Dealers (NASD), your state securities division, and the national professional associations to which your prospective advisor belongs.
4. Find out, up front, how you will pay for services.
Will you be charged fees, commissions, a combination of both? Make sure you ask the financial advisor whether he or she sells any products, and if they earn commission on these sales.
5. Nail down the specific services the planner will provide.
Be sure you have a written statement of the activities and schedule of contact you can expect from the financial advisor.