How To Find a Financial Services Advisor

This is a topic near and dear to my heart.  I am a licensed Financial Services Advisor.  The first thing that you need to know in order to choose an advisor in the financial services industry is the difference between Broker Dealers and Registered Investment Advisors.  This is a key difference that will have an impact on the advice that you receive.

To oversimplify the difference, financial advisors that are only broker dealers are basically salesmen that are required to present products that are "suitable" for you.  There is a tendency to push company specific products that generate higher commissions for the servicing advisors.  This does not mean that the advice is bad or that the products are inappropriate.  It just means that the financial advisor servicing may not always have your absolute best interest at heart.

A Registered Investment Advisor, on the other hand, is a fiduciary and is placed in a position of trust.  This means that when you walk into the office of your financial services advisor he or she is required by law to put your best interests in the forefront at all times, regardless of whether or not a specific product will make a higher commission for the servicing advisor.  This does not mean that the advice is always the best for you.  It means that the financial advisor has to recommend what he believes is the best for you.

Next, learn about your financial services advisor's experience.  If he or she has additional training and designations such as Chartered Financial Planner (CFP), these will usually be prominently displayed.  These financial advisors have more training and experience to apply to your situation.  However, length of time as an advisor is not always a benefit.  Sometimes a newer advisor with fresh training and an understanding of recent changes and techniques may better serve your needs.

Overall, learn as much as you can about the financial services company you may deal with, whether or not they are a registered investment advisor, and the experience of financial advisor that would service your account.  If you take these steps and ask intelligent questions then you will be a more informed financial services consumer and will be confident that you are in control of your financial situation.