What is the best way to find a trustworthy financial planner?

Question

Gen X-er with no kids looking to boost my investments for a more secure retirement. Been burned before by dishonest quacks and don't want to deal with salespeople whose commissions are more important than my future.

Answer 1

Go to Dave Ramsey's website and click on ELP (endorsed local providers).  He lists financial planners and others that have the heart of a teacher.

Answer 2

There's no such thing... it's like trying to find a straight ***.

Answer 3

Then you need to find someone who does not work for commissions. I work for a fee-only advisor. They are paid a negotiated percentage of your acct. balance on a quarterly basis - so if they set you up for your portfolio to do well, they do well, as it should be. Your advisor has to be acting in YOUR best interests, not pushing the "product du jour" their firm is pushing them to sell you.  

Answer 4

There is nobody more trustworthy than yourself.  Educate yourself in financial matters.  Manage your own money.  And you won't ever have to wonder whether you really have your own best interest at heart.

It's not just about trustworthiness.  It's also about how important the money is to you.   When it's your own money.  Then you will care about it a lot more than someone who is only doing his job.

Answer 5

About the best thing you can do is just meet with a bunch and find one that suits what you need and make sure to get lots of references, or ask your friends or co-workers who they use and 'interview' them.  And don't tell them what you want to do before you interview them if possible...a shady advisor might twist what they do around to suit your need sometimes.

Remember: You are hiring the person to work for you. Would you offer a person a job without interviewing them?

Here are some key questions you may want to ask your financial person that is assisting you:

What areas do you offer advice? Investments? Estate Planning? Retirement Planning? Insurance? Credit councilling? Taxes? Employee Benefits? Education funding?

Tell me about your company: (There are so many places offering financial services make sure you are dealing with a reputable company...look for brokers more than 'captive agents' that can only sell one brand)

What are your professional credentials or qualifications (look for designations like CFP, PFP)?

Describe your typical client: (different advisors specialize in different areas, some advisors are there for the rich, while other advisors cater to the middle-class. Different situations need different strategies)

What qualifies you to provide financial adice to someone in my place in life? (here's where you tell them what you need them for)

Can you provide me with references or testimonials from satisfied clients?

What is your approach to financial planning?  There is no 100% by the book strategy to creating a good plan, but just make sure what they do makes sense to you...avoid one trick ponies that strictly offer one strategy as a one size fits all approach (IE: companies that only promote Buy Term and Invest the Rest and nothing else...it's a decent, albeit flawed, strategy for some, but certainly not for every).

Do you offer written plans for your clients? How detailed are they?

What fees are there for your services?

How are you compensated? (This can be very important! Some advisors are paid to sell, not provide service. Some advisors are paid more for service than sales. Some are paid on commission from the companies they promote, so the advice is always free.  Some advisors are "fee for service" which means just to meet with them it will cost you money whether you set something up or not.  Make sure your advisors compansation is in line with your best interests and goals)

Who else will I be working with? Do you work with specialists? Who else from your firm will be assisting in the planning of my finances?  Some advisors have a team of people...think of it like a doctor...you go for an accessment from your doctor, he sends you to a knee expert, or brain expert or whatever.  It's better to deal with experts rather than someone doing things parttime or a whole bunch of stuff half assed.

How frequently will you review my finances?

What do you expect from me in our relationship?  Different Advisor expect different things...some what lots of referrals, some want you to be exclusive for all your financial needs, some just want to sell you something and disappear.

Ultimately the main goal in finding an advisor is: 1) Are you comfortable in dealing with that person? and 2) Do they do what's right for you and not what's right for their paycheque.