Are we a match made in heaven? That remains to be seen. However, we firmly believe that a relationship with a financial planner isn’t one to be entered into lightly. Before selecting an individual to help guide you through life, we recommend you carefully consider the following criteria.
Are they a CFP® (Certified Financial Planner)? This designation warrants formal training and testing in comprehensive financial planning and should be looked upon as a baseline for consideration.
Do they operate under the Fee-Only compensation model? This is imperative. Charging a commission should be a non-negotiable deal breaker.
Do they accept fiduciary responsibility? In writing? If so, you can rest assured they will operate with your best interest at heart.
Are they a Registered Investment Advisor? Be certain the individual is registered with the SEC (Securities Exchange Commission) or their State Securities Department.
Are they truly an independent financial advisor? Agents or employees of banks, broker-dealers, and insurance companies must inherently serve two masters, only one of which is you.
Do they utilize Separately Managed Accounts (SMA) or actively managed mutual funds in portfolio management? Advocating participation in either should send up a red flag.
Are they an Accredited Investment Fiduciary (AIF®) or Accredited Investment Fiduciary Auditor (AIFA®)? This designation is awarded by the Center for Fiduciary Studies and warrants their advanced training and competency in fiduciary responsibility.
Are they a NAPFA-Registered Financial Advisor? This is the true litmus test. A NAPFA-Registered Financial Advisor designation represents the highest achievement a professional, fiduciary, comprehensive financial planner can attain. If they are one, look no further.