Where Can I find a Good Financial Advisor And What do I look for??

Question

Hi, I am in my 20S and I am seeking a Financial Advisor who WONT rip me off. First of all where do I go to look for a "Financial advisor"? [ one that does NOT require an Large amount of money to invest] AND What are some thing I should look for??

Answer 1

are you willing to learn?

the key to preventing being taken advantage of is learning some of the stuff for yourself -- and then not telling what all you know so that when someone tries to spin you a yarn, you'll know he kissed the Blarney Stone and should be avoided.

[In fact, any salesperson who seems to have kissed the Blarney Stone should probably be avoided on the general principle that it is just too easy for someone who is very glib to pass lead off as gold -- which I wish we'd recall when electing politicians.]

***
back on subject -- in general, there are two kinds of FAs -- commission sales people and fee driven ones.

Any FA who tells you (I had one actually tell me this) "you don't pay me, the company does" when I asked whether he got commissions absolutely does get commissions and probably fairly hefty ones -- which you certainly do pay for.

When you're starting out, the old and simple advice may be sufficient -- save 10% of your total income and buy the lowest cost mutual fund(s) you can find [this will be offered by Vanguard in the US -- see their website]. Then skip the FAs until your invested funds (capital) are at least a year's income.

[at 40k income and a 3% commission, that's a 1200 payday to a commission guy/gal -- enough to get a good job done without having them delerious over the size of the check they'll get out of you.] 8-)

meanwhile, you learn over at the public library. the subject is what is in a long range financial plan, how the pieces fit together, and what types of investments are used for what purpose.

after you've read two or three of the standard authors [hint: the ones with several different books on the shelf have stood the test of selling to at least some folk who know something], then go read a couple of the more radical ones. [I'm a radical myself, but don't have any pubs for you to read.]

then you'll be geared up to actually understand what that FA you're interviewing is trying to say. And you'll know enough to spot a sleeze bucket who is just looking for a commission.


does this help?

Answer 2

Dear White Bunny,
Unfortunately there is know sure way of knowing if you've been ripped off, taken advantage of or otherwise abused until after the fact. What you can count on is that with the amount of money you have to invest you aren't going to get much ongoing attention. No one will ever be as concerned with your money as you are.

You don't need a financial advisor, you need the patience and motivation to learn. With few exceptions advisors are going to put your money in mutual funds. M/F's are (in my not so humble estimation) designed for people who don't like to think.

As one who has been investing for nearly thirty years please, believe me when I tell you this is not the time to be getting into the market. Particularly if you don't know what you're doing.

Actually, now that I think about it, this is how you can tell if the advisor is both honest and knowledgable. If you are told to keep your money in cash and patiently sit on the sidelines for the next year and a half or so you've got a good one. If not they aren't acting in your best interests.

Answer 3

Try your state securities commission. They may have a list of advisors registered to practice in your state, near you, Otherwise friends and associates or the Yellow Pages.

Once you find some you may be interested in doing business with check them out at the Brokercheck link with FINRA below to make sure they have no violations.

Then go to the second link and check out their ADV. Thats the disclosure form they must file with the state, FINRA, sometimes the SEC, and give to clients. It tells about their background, how they do business and the fees they charge.

I would choose a fee-only advisor, rather than one that works on commission. It just seems more objective for them to charge for their advice rather than sell whatever gets them the best commission.

Answer 4

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Answer 5

all markets in a sell off

Answer 6

Please read my profile. Exactly what is it that you are trying to do?