It’s not difficult to find any number of financial intermediaries to help you manage your money in some form or fashion. But, as the National Association of Personal Financial Advisors depicts in its “Pursuit of a Financial Advisor Field Guide,” it’s easy to get caught at the intersection of Confused and Unclear avenues. As NAPFA poses, “How do you know when you’ve found someone who can really help you?”
Here are a few qualities to seek:
Fiduciary. We act only in your best interest; a fiduciary relationship means we’re legally obligated to do so. (Hint: Registered Investment Advisor firms must be fiduciary. Not so with others such as insurance companies or broker/dealers.)
Fee-only. Our compensation is fully disclosed, fairly priced, and paid strictly by you, our client. We accept no commissions or other types of incentives from outside sources to distract us from serving as your fiduciary.
Simple Discipline. Most investors react to emotions in their trading activities, tempting them to sell out of fear when markets are low and rashly buy when markets are high. Serving as your agent, we help you employ knowledge and scientific principle – rational decision making – to prevent the expected damage caused by emotional trading.