What should I look for in a financial advisor?

Here's some great advice! Picking a Financial Planner:BACKGROUND - ask for a resume or CV- look for a college degree in accounting, finance, business, or law- ask how long the advisor has been in business- look for at least 10 years of experience CREDENTIALS - there is no licensing for financial planners- look for a Certified Financial Planner designation- must be registered as an investment advisor with the SEC- ask for the advisor's CRD number (Central Registration Depository)- use this number to contact the National Association of Securities Dealers: 1-800-289-9999 or visit their website at www.nasdr.com- ask for a free report of employment background and any previous problems- ask for five references you may contact FOCUS - ask about your advisor's investment philosophy- which investment vehicles he / she prefers and why- criteria for choosing investments (track record, fund manager, etc. )- interpretation of past performance when evaluating stocks and bonds- what kind of research the advisor does on new products- philosophies and practices relating to risk-tolerance- specialized focus (certain professions, incomes, family composition, etc.)- how frequently you will meet (should be at least quarterly) HOW YOUR ADVISOR IS PAID - commission based get paid when they sell financial products- can also make money whenever they trade for you (buy or sell)- earn a percentage of the transaction or of your investment balance- tend to spend less time planning for your future- may suggest more costly investment vehicles- flat fee means the advisor is paid only for his / her advice- do not make money when you buy or sell- no conflict of interest and more attention to what you really needQuestions To Ask:The following 10 questions can help you determine whether an adviser is right for you.1. What experience do you have?2.

What are your qualifications?3. What services do you offer?4. What is your approach to financial planning?5.

Will you be the only person working with me?6. How will I pay for your services?7. How much do you typically charge?8.

Could anyone besides me benefit from your recommendations?9. Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?10. Can I have it in writing?

The Certified Financial Planner Board of Standards Inc. Provides an even more complete list of questions you can ask when interviewing financial advisers. It can be found here: http://www.cfp.net/learn/knowledgebase.asp?id=8Sources:http://www.onlineorganizing.com/ExpertAdviceToolboxTips.asp?tipsheet=75http://www.bankrate.com/brm/news/DrDon/20041206a1.asp Sources: Sources in the response.

First, look at their motives. Then, look at the rest of this stuff... I'm a financial counselor, not a registered advisor or planner, but I can tell you the most important things to look for. First and foremost, is to look at their motives.Many...TOO MANY, advisors make their money by generating commissions for themselves, they do this by constantly moving your money in and out of investments.

This makes a lot of money for them, but kills your return. Many times, investors end up losing money in this situation. You want to find someone who makes their money ONLY on fees paid directly to them, not by commissions from trading YOUR money.

Make sure your advisor has the same moral and/or ethical beliefs that you have. If you have strong convictions about social or religious things, you want to try to find someone who understands your position and agrees. Otherwise, they may be doing things with your money that you might not approve of.

Does the advisor 'walk the talk? " Are they telling you to do things with your money that they wouldn't do with theirs? Are they following their own advice and teachings.

If they do something different than what they are telling you to do, that is usually a huge warning sign. Kind of going along with that, do you want your finances to be like theirs? If they are deeply in debt, are having problems making all of their payments, have investments that aren't doing so well, can't afford a reasonable car or home; then you need to seriously consider looking for someone else.Do they work out of a low rent office in a bad neighborhood?

Or do they have a nice home office or reasonable office space in a respectable location. You want to find someone who takes the time to explain to you EXACTLY what they are doing with your money, and in a way that you can understand. If they seem to be speaking a lot of mumbo jumbo and then tell you to 'just trust them,' then look out!

Either they don't understand it very well themselves, or, for some scary reason, they don't want YOU to understand what they're doing with your money. Look into the level of risk they are asking you to take. Too often, a financial advisor will ask you to take way more risk with your own money than they would be willing to take with theirs in your situation.

If they just go right for the highest return investments, whatever they may be, without looking into and explaining the risk, then you might end up losing a lot of money. Finally, make sure that what they are telling you to expect from your investments is reasonable and makes sense. I remember one guy telling people he had an investment that would return 20% per month...not per year...PER MONTH!

Well, when I did the math, I realized that if he were right, then by the time a person retired, they would have more money than there is in the United States! Needless to say, I advised that client to dump that advisor and keep looking. A high return comes from a higher risk.

An average return of 12% per year or so, over time, is moderate to moderate low risk and is reasonable. A promise of say 30% per year is possible, but at much higher risk. You may get that return, and then again, you may lose your money.

If you're up for high risk investing for a higher return, that's fine, as long as you use money you can afford to lose, and your advisor explains it to you ahead of time. Bottom line: Don't let your advisor get you into ANY investment that you don't understand exactly how it works. If you don't understand, he better be able to teach you so that you do understand.

If he can't do that, then find another advisor. My answer is based on an article called "How to choose someone to help you" On The Financial Page of my website. You should also read the article "Whom you should listen to.

" You can find the information for free at www.eclecticsite.com/financial.html Sources: www.eclecticsite.com/financial.html .

Depends on what you need. I have been a financial advisor for many years. Most of the people I see fall into one of three categories - 1) no money and are struggling to make ends meet.2) Some money but not doing everything they could to meet their objectives and 3) People with significant wealth who really need help with the complexity of planning.

A financial advisor should be able to listen. Should have a process they can teach (and be able to show you the process. ) They probably have software or some tools for helping you track your spending and investing.

They should be independent and licensed to sell any financial investments (within reason - stay away from captive agents who only sell one company). They should also have some credentials to demonstrate they are committed to their profession. If you are in category 1 - you should expect them to teach you a system for budgeting and saving.

They would show you the merits of a 401k plan, an IRA or whatever tools make sense for your situation. They would probably charge a fee to educate you. But once you are educated - you really don't need them any longer.

Frankly, it would be a very unusual person who would do this for you. So if they do, you should consider being loyal to them and sticking with them as you implement their ideas successfully. If you are in Category 2 - the advisor can help you with asset allocation.

Making sure you are diversifying your investments properly and not setting yourself up for a major downturn if there is a huge market correction (like we are having right now). If you are in Category 3 - Then the advisor needs to demonstrate real skills in these areas. Ask to see a sample plan.

Look for someone who will listen to your concerns and not just try to sell you a size 10 shoe. Planning takes time and thought - so be prepared to work on this for awhile and then keep it up to date as your situation changes. Hope this helps..

Someone with the heart of a teacher Dave Ramsey (financial guru) says that your financial advisor should be someone with the heart of a teacher. What does he mean? You want someone who will spend the time to explain how a particular investment works and is not trying to hurry you into buying something you don't understand.

You need someone who will diversify your investments. Single stocks are usually too risky. Good growth stock mutual funds earn on average 12% per year.

Investments are just that - leave the money alone for at least 5 years and don't invest money that you think you'll need in that amount of time. Steer clear of insurance as an investment. Whole life or Universal life policies are life insurance with an investment that has a poor return.

You should buy good term life insurance and then invest the rest of your money in good growth and income mutual funds. If you don't feel comfortable with your financial advisor, try another. Where will you find them?

Ask your friends who they recommend. Or, log into daveramsey.com click on ELP (Endorsed Local Provider) and enter your location. You'll receive the name of a financial advisor with the heart of a teacher.

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Well, I have a guy who advises me in some investments. He will only suggest things that he puts his own money into. If they are not willing to put some of their own money into something, I would have doubts about him unless I had different specific needs.

For example, if I am young and willing to take high risk moves, and he is nearing retirement (or give financial advise as a retirement part time gig), I would not expect him to invest in the same things I invest in. I would expect him to get paid by me, not by commission. A commission based adviser has a conflict of interest.

He wants to help me make money so he can keep my business, but he wants to sell me the things that pay the highest commission so he can make more money for himself. That kind of thing is trouble. In the end, no matter how good an adviser he/she is, it is up to you to do due diligence and know where your money is going..

Financial doctoring is bad, but financial engineering is not. What is wrong with the doctors? " "write 5 sentences about the role of education in successful financial planning, in which you correctly use a different" "Financial Question(s): 5" "Can anyone recommend a good tax account/financial advisor in Manhattan?" "Can I take a tax deduction for the fee I pay to my financial advisor who manage my retirement account/investment" "what is the role of education in successful financial planning?

" "I am planning a financial capital campaign kick off event for 130 people. What light foods should I offer w/ iced tea?" "How can I get some financial help? " "I am looking for a good, trustworthy, financial advisor in the San Jose, CA area.

Any recommendations." "Financial Planning for a Sizable Windfall.

Financial doctoring is bad, but financial engineering is not. What is wrong with the doctors?

Write 5 sentences about the role of education in successful financial planning, in which you correctly use a different.

Can I take a tax deduction for the fee I pay to my financial advisor who manage my retirement account/investment.

I am planning a financial capital campaign kick off event for 130 people. What light foods should I offer w/ iced tea?

I am looking for a good, trustworthy, financial advisor in the San Jose, CA area. Any recommendations.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.