The Wall Street Journal’s latest guide for choosing a Financial Planner puts forward criteria that we wholeheartedly endorse. A quick summary is below, but I strongly encourage you to follow the link for the full article.
- Hire a CFP®. It’s the gold standard credential in financial planning.
- Decide if you can (or want to) do it yourself. If not:
- Avoid advisors who earn commissions for selling investments
- Avoid advisors who want you to buy complicated insurance products
- Pay a flat fee or flat percentage – direct payment for direct advice.
- Collect referrals from peers in similar situations who recommend their advisor.
- Look for a Fiduciary relationship, the suitability bar is too low and allows for conflicts of interest.
- Run a background check on your prospective advisor
- Beware of investment performance braggadocio