There is no magic dollar value that motivates an individual to seek professional financial advice. More often, a major money event will occur in a person’s life which will send them scurrying through an advisor’s door. Some of the most common triggers include:

• Retirement
• Selling a business
• Receiving an inheritance
• Divorce
• Death of a spouse

Once you realize that you need help, how do you go about finding the right advisor?

Anyone can hang out a shingle calling themselves a ‘financial advisor.’ There are more than 25 different financial designations that one can attach to a business card, but CFP® is the most significant credential. A Certified Financial Planner has passed rigorous testing, and must meet continuing education and ethical requirements in order to use the designation. A good place to start your search for a local CFP® professional is the board’s “Find a Financial Planner” tool, found here: http://www.cfp.net/search/.

After you have the names of a few individuals, check out their websites. This should give you a good idea as to how they do business and what they believe in. Make sure to check out their investment philosophy. Do they spell out a well founded long-term investment strategy that makes sense?

After going through this process, you will likely want to meet in person with one or two of the planners left on your list. As you get to know these individuals and their practices, remember the 5 C’s:

1. Character
You want to be sure that the advisor has a high level of integrity, dependability, and honesty. Ask for references from a few of their current clients. Call them and ask the questions that are important to you!

2. Chemistry
Do you connect with the advisor? Do you feel that they completely understand your needs, objectives, biases and preferences? Will you enjoy working with this person?

3. Caring
Has the advisor spent a fair amount of time up front trying to get to know you? Do they make you feel that they are truly concerned with your well-being? You will also want to ask the advisor about their standards of care: Those who have obtained the CFP® designation have a fiduciary duty to place your interests ahead of their own.

4. Competence
Ask about their years of experience in the industry. Have they ever been publicly disciplined for any unlawful or unethical actions? What is their educational background? It is also important to understand the services that you will be receiving: Do they only provide advice on the investments, or do they offer guidance on more advanced planning issues? These can include complex topics such as wealth enhancement, wealth transfer, wealth protection, and charitable giving. Many advisors market themselves as ‘wealth managers,’ but studies show that only 6% of advisors actually provide these advanced planning services.

5. Compensation
You have every right to ask the advisor how they will be compensated. Do they receive commissions from selling investment products to you? Many people view this as a conflict of interest. Other advisors are paid based on a percent of the assets that they manage. Under this arrangement, there is no conflict of interest because the advisor has an incentive to grow your money, and they also will be paid less when the account declines in value.

If you follow this advice, then you will likely find yourself in a long lasting
relationship with a qualified advisor.
By Amanda Brandt, CFP®
Kurt Gusinde, CFP®, CFA
To learn more about us, please visit our website www.exeterfinancial.com.