Choosing a financial advisor should be a carefully considered decision. You are trusting someone with the task of helping you achieve your financial goals. Research several advisors before you choose one. Some factors you should consider include the following:
-Is the financial advisor a certified financial planner? Some certification processes require financial advisors to attend continuing education classes and hold them accountable to a code of ethics.
-How does the financial advisor get paid? Is he or she commission-based, fee-based, or working at an hourly rate? Commission-based financial advisors are paid by selling you products and so may have motives other than your best interest for pushing a certain product. Meanwhile, fee-based advisors, who typically earn 1 percent of your annual assets, may be disinclined to making certain suggestions that will decrease your annual assets and subsequently their fee.
-Is the financial advisor a fiduciary? This means that the advisor has pledged to act in the client’s best interest.
-Lastly, be sure the credentials are up-to-date, and get references from current clients to get a sense of the work that the advisor does.
Frank LaRosa began his career as a financial advisor at Prudential Securities, where he was named the top new advisor for his achievements in that position. He currently works as the Chief Executive Officer and President of Elite Recruiting & Consulting, a company dedicated to placement and consultation of financial advisors.