How to Select a
Financial Advisor Where to start? One of the more confusing aspects of your search will be determining how a financial advisor can help you. Not making this task any easier, the title of financial advisor is now being used by insurance agents, brokers, bankers, comprehensive planners, and fee-based planners. Worse yet, while they all have their own focus, each will tell you that they can help you in nearly all areas of financial planning. Before you begin your search, you should have an idea of what services you need. This will help you to narrow your search to the financial advisor's area of focus. For example, if you are looking primarily for life insurance, annuities, long-term care, or other insurance based products, you may want to research insurance agents or "financial advisors" who work for insurance companies. The focus of many "financial advisors" can be determined by the company for whom they work. While not everyone for a company will have the same focus, most likely will. When in doubt, call prospective advisors and ask them who their typical client is and what type of investments those clients use. Designations: There are many designations that an advisor can have. These initials after an advisor's name may look more like Alpha Bet Soup than anything of value, but they can help identify the specialties and education of an advisor. One that stands out as being of value for prospective clients is the CFP® or CERTIFIED FINANCIAL PLANNER™ professional. The CERTIFIED FINANCIAL PLANNER™ professional has undergone extensive education and testing while meeting the ethics and experience requirements of the Certified Financial Planner Board of Standards, Inc. The education behind this designation provides the advisor with background in all areas of financial planning including insurance, investment management, tax strategies, estate planning, employee benefits, and retirement planning. The CFP® practitioner thus has a well-rounded education and has knowledge and experience in many of the areas faced by most investors. Unmarried couples may want to look to someone who has the Accredited Domestic Partnership Advisor (ADPA) designation. Offered through the College for Financial Planning, the ADPA has either an MBA or CFP® certification and has passed an exam testing the advisor on his/her knowledge of wealth transfers, federal taxation, retirement planning, and planning for financial and medical end-of-life needs for domestic partners. Resources: There are many internet resources that can provide quality questions to ask prospective financial advisors. The following websites provide some useful information on professional designations, how to select an advisor, questions to ask during your first meeting, and to check out prospective advisors' regulatory background. FINRA Investor Information: www.finra.org/InvestorInformation/index.htm State of Maryland Investor Education: www.oag.state.md.us/Securities/pubs.htm Securities and Exchange Commission: www.sec.gov Certified Financial Planner Board of Standards www.cfp.net Like any other relationship, the foundation of the relationship with your advisor should be built on trust and communication. Make sure you are completely confident with your choice before you move forward. This article is for informational purposes only and is not intended to provide specific advice to any individual. Consult your legal, tax, and/or financial advisor to determine what is appropriate for your situation. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. | 
