SEEKING ADVICE
Plan and prepare finances with the help of an adviser Financial advisers are an invaluable resource for people who need help managing their money. Historically, there is a misconception that financial advisers are only for the rich, but anyone can benefit from both education and guidance when it comes to finances. Though people with complex finances tend to benefit more from planners, the key is finding a professional who understands your personal needs and is willing to work with you. According to U.S. News and World Report, some financial advisers are no longer interested in working with people without substantial portfolios. Certain firms have stopped paying Finding a fiduciary commissions to brokers for accounts that are considered People new to investing will no doubt small, including customers find some financial jargon confusing. with assets worth between Fiduciary is one term that is important. A fiduciary is a financial professional $100,000 and $500,000. While who must place clients’ interests ahead that can make it difficult to of his or her own. Fiduciaries also find help, there are still ways must disclose any existing or potential to receive assistance from conflicts of interest that might affect local professionals, you just clients’ willingness to work with them. have to find the right fit. That includes how they earn their n Ask friends for money. Non-fiduciaries have no such responsibility, so they can sell clients a recommendations. If a particular investment without having to financial adviser has worked tell clients how their own compensation with a friend, family member is affected by that sale. or colleague they may also Some fiduciaries work for specific be able to provide services to funds that only allow them to sell those you. People who have worked particular funds’ proprietary products. with the adviser you’re That’s the case even if they believe there are other investments that are better considering will be able to for given clients. Such arrangements offer more insight about the must be shared with clients for advisors benefits and process. To find to maintain their fiduciary status. The professionals with reputable Certified Financial Planner Board of credentials, look for someone Standards’ “Rules of Conduct” can be who has a Certified Financial found at www.cfp.net. Planner or Personal Financial Specialist designation. Those F I N A N C I A L
who are relying on investment advisers should work with one who has a Chartered Financial Analyst certificate. Different types of credentials indicate the professional has proficiency in specific areas of financial planning and regulations. n Look around online. There are diverse online resources that can be beneficial when searching for an adviser. Many of these sources, including U.S. News & World Report and The Garrett Planning Network, offer searchable databases or maps where users can find financial advisers in their areas who cater to the middle class. To review credentials, experience and more information about individual advisers in your area, search for their Investment Adviser Public Disclosures online at www.adviserinfo.sec.gov. n Contact a professional association. The National Association of Personal Financial advisers can provide resources for finding local financial advisers. Visit www.napfa.org for listings. Individuals can also look at the Accredited Financial Counselor website at www.afcpe.org to find professionals. Accredited financial counselors often focus on helping low- and middle-income people at affordable prices with relevant financial assistance. n Research compensation. Financial advisers may receive compensation in one of two ways: fee-only and non-fee-only. A fee-only adviser typically charges an hourly fee or flat rate for services. A non-feeonly adviser may be compensated at a percentage of assets earned or may receive incentives and commissions from their companies based on preestablished sales goals or objectives. There are no right and wrong answers to fee schedules, but find a situation that works best for you. Finally, remember that the financial planning process isn’t uniform. Do your due diligence and ask important questions before hiring an adviser.
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