Advertiser Disclosure
Choosing a local financial advisor

Like any advisor, a local financial advisor advises, suggests and even assists clients with financial services. They have special training and certificates and also hold a license. In the USA, they carry a series 65/66 license in accordance with the Financial Regulatory Authority (FINRA). These licenses have to be displayed and the word ‘financial advisor’ can be applied to brokers, accountants, lawyers, insurance agents, financial planners, and advisors.

Financial advisor/planners help you to save, invest and grow your money to achieve your financial goals – like buying a house, investing in various assets, retirement, and estate planning. They differ from brokers and accountants, insurance agents. Brokers deal in stock at the trade market; an accountant will help you lower the tax while the insurance agent will hand you to buy a complicated policy. They earn a commission and rely on it as their income. They have to be unbiased in their conclusion. Many advisors /planners make money when they are they are paid. They do not make a large amount – a flat rate, annual fee or when an order is placed or by the hour.

A Certified Financial Planner has to go through rigorous tests based on their board of standards; they have also to commit to continuing their education in financial matters. CFP is a good credential, but they could fall short on skills and credibility.

How to choose the right local financial advisor/planner?

  • Always look for a local financial advisor who is also a certified financial planner. They are regulated and have a license, and have taken classes in financial planning. Look for the planner who earns a commission rather than on a flat rate; they will take you in the right direction. Find one that has experience in advising clients from all stages of life.
  • You can go through the National Association of Personal Financial Advisors (NAPFA). The planners here are paid a fee, which is their source of income from the clients. They take no commission and are sworn to work for the best interest of the client. NAPFA standards are higher than the CFP certificates.
  • You can also check out an advisor/planner from the Garrett Planning Network, who are sworn to be available for even small projects for hourly fees.

Advisor/planner’s pay structure

  • Those who work for commission rarely try and give you a better deal when they are getting a cut from a particular mutual fund, insurance package, etc.
  • Fee-based advisors, who earn just 1% from your annual assets, will not be inclined to tell you at that moment when you want to liquidate your assets to liquidate it, as it would shrink his fees.
  • A planner on hourly basis is best when you don’t have a bunch of assets. They are usually set up their business, and your needs are small; they will take proper care of your finances. Many experienced advisors also work this way as they enjoy working with the rich young crowd who can afford to pay them.

Fiduciary

A local financial advisor/planner has to keep the clients best interest in mind. The investment professionals who are not fiduciaries have fewer sustainability standards. It means they will sell to you what is suitable for you but not necessarily in your best interest. The fiduciaries are Independent Registered Investment Advisors (RIAs) or firms. They provide personalized financial advice many of them have complex financial needs. These advisors are not tied to any funds or financial products; hence they have the highest standards and act in the best interest of the client. The fiduciaries or Independent Registered Investment Advisors are registered with the Securities and Exchange Commission or state securities.

Independent firms are usually run by independent advisors who from a deep relationship with the client and have a sense of accountability to them. They will give you a customized guidance based on your financial situation; they will have a relationship with the client that is responsive, attentive, and personal. Their fee structure is transparent and straightforward, they have the expertise to support your complex needs, and your money is held by an independent custodian, not the firm.

Background check

Check if the local financial advisor/planner has been under the scrutiny of an investigative agency or group and/or has been found not guilty of any wrongdoing. Then you can double check with the other clients.

Check credentials

Check the advisor/planner’s credentials if they are valid, does he hold a CFP certificate. The disciplinary record of CFP holders is available online.

Beware of brags

In an initial meeting with an advisor who brags just walk away and do not take any risks. No one can outperform the market averages unless he is Warren Buffet. And no local financial advisor will make such a statement. What is needed from them is a good advice on various issues rather than just investments.

Get Quotes











By clicking submit; you agree to share your info with us. We may reach out to you via mail or over call. We may also share your information with our third party partners.
Calculate Your Tax
Live Stock Updates
  • Loading stock data...