Finding the right advisor can be somewhat daunting. There are many factors to take a look at. What becomes even more daunting is knowing you have made the wrong choice. Today I am here to keep you from doing this.
Here are some tips and general guidelines for finding the right person to help you out with your money.
1)It’s best to go with a fee-only type person. You will be hard-pressed to find someone who doesn’t come with a conflict of interest. A fee-only person comes with the least amount of baggage. This person will not charge a commission as a whole fee. This is exactly who you want on your side.
This type of advisor will get paid through commissions and other sources. This person is different from all the rest. There is a specific site you can go to for this. It’s called the NAPFA. Go to this site.
2)It’s a good thing to be picky. It will help you out in the long run. Agree to speak to and meet some of these people you wish to hire. Find out where they stand with you. Ask them some of the tough questions. It’s through the tough questions you will find out where their true interests lie. It pays to be picky. This is your money. You need to be extra careful over who you allow in to help take care of it.
3)This one goes along with the above tips. Ask for the references. Anybody can be who they want to be. A financial person will tell you anything you want to hear.
A reference will secure the truth or the falsehood behind what an advisor is telling you. Which is why you should ask for the references. It’s good to get at least 10 of them. All from different people and locations. Give them each a call. Tell them you are thinking of investing and using this guy/girl. This is when you will find out if what the person was telling you was true.
Any good business financial advisor like Doug Foshee will be okay with this. If you meet an advisor who becomes skittish about this, you need to run away. Thank them for their time and show them the door.
It’s the only way you can find out who is legit and who is not.
4)You also need someone who uses a third-party to keep your accounts balanced. In other words, do not choose another Madoff, and they are out there. Keep away at all costs.
This type of person will secure the funds under their own umbrella. If the person is a crock they can hold your funds and hedge the money against you. Just like Madoff did. You need to put on your business bonnet. Don’t be so naive about things.
One final thing to note. Please do background checks. Use the Form ADV. This is the only way to know who is legit. This form will let you know about any hidden skeletons in the closet. What happens if the guy works as a broker too? Have this checked out as well. You will have to use a separate form for this though.