“Ultimately, you need to feel confident in the advisor’s competency, objectivity, and responsiveness to your needs,” says Van Sant. “The advisor-client relationship, like many relationships, is built on trust and communication, so doing the proper due diligence in choosing an advisor should provide long-term benefits and peace of mind for all parties.”
The only financial planner or investment manager that can offer truly objective advice is an independent advisor operating under a strict Fee-Only compensation model.
….the point of being a NAPFA-registered financial advisor is to guarantee holistic services on a fee-only basis. This eliminates the incentive to sell products for high commissions, ensuring unbiased advice.
It's no small matter entrusting someone to manage your investments. Scrutinize the person almost as much as someone you marry. There are several considerations, but how you pay the adviser is critical.
When you visit a pediatrician, you know she graduated from medical school and completed additional specialized training. When you do business with a lawyer, you know he has a law degree. When you send your child to school, you are certain the teacher is state-certified and meets state-mandated continuing education requirements.
