Financial and investment advisors have to undergo training that guarantees their competence in the niche. If you are looking for family finances assistance, make sure that you will be working with a registered and qualified professional.
Financial advisors are expected to register with the Securities and Exchange Commission (SEC) or with a state security agency. All advisors that manage more than 100 million dollars are required to have a SEC registration.
After registering with either SEC or the state security agency, financial advisors are asked to fill a document called Form ADV. Form ADV provides information about the financial advisor’s business history and about the types of services that the professional specializes in. The Investment Adviser Public Disclosure (IAPD) website has an archive of Form ADVs and you can discover more information about your financial advisor of preference there.
Apart from asking about registration, you should also research a financial advisor’s certification. Financial advisors can have certification from the Certified Financial Planner Board of Standards or CFR certification. Such certifications are not required by law but they give some information about the quality of service you will be receiving.
It is very important to meet a financial advisor in person and to discuss your family finances and additional questions before deciding to work with each other. When interviewing such a professional, ask about their experience and the niche that they have specialized in.
You should also inquire about the financial advisor’s educational background, the range of products and services being offered and the type of payment that is expected from clients – an hourly rate or a flat fee.
Getting a better idea about a financial professional’s registration and background will help you choose the advisor who will be most qualified to handle your particular case. There are online resources that you can use to perform a background check and you should also carry out a thorough interview. Prepare your questions in advance and ask about everything that you want to know.