How do I go About Selecting a Financial Professional?
First decide what you want
this person to do for you. Would you prefer to simply hand over your
money, sign the papers and see him or her once a year? Do you want
them at your shoulder as you work the keyboard of your computer as
you manage your own investments? Do you want a team of professionals
to pay your bills, run your household and oversee your caterer?
There is a financial professional for every need so - what do you
need?
Next, find out what sort of credentials such a professional should
have. What licenses are required and by whom? The SEC has all of
this information post for you on their website www.sec.gov along
with their own guidance on how to select just the right person for
you. What sort of firm do you want? Do you prefer something large
and international with greater resources or a smaller and more
personal firm where you can get individual attention?
Then you will want to generally note what kind of person you want
working for you. Do you appreciate the go-getter type? Do you prefer
someone more seasoned? This person is going to be intimately
involved with you, your family, and your finances for some time so
carefully consider what type of person you would feel most
comfortable dealing with that closely.
Then you can begin setting about collecting names from friends and
family. Check out the referral websites. Look through the phone
book. Get together a list of questions to ask and your preferred
answers to those questions. Call up each one and begin asking your
questions. Note down their answers. Do a background check with the
NASD and the SEC and your state of residence. You do this by asking
for their U4 and a copy of their ADV Part II. Then select those who
merit a second, in-person interview and conduct those interviews.
When this is all said and done, carefully consider which one you
want to hire and then hire him or her.
Remember to look for the Three C's: Competence, Character, and
Compatibility.