Finding the Perfect Advisor Match
Finding a financial advisor you're comfortable with over the long term is central to achieving your financial goals, and will make it easier to develop a strong, trusting relationship. Financial planning is an art, not a science; the better the planner knows you, the more effective his advice will be.
Asking for a Referral
Because your financial planner is the quarterback of your advice team, he may be the first person you start shopping for. By far the best way to find a planner is to ask friends you respect, and who are satisfied with their financial progress, for a referral to their planner. You'll still need to meet the planner before deciding whether to work with him, but having the personal reference from a friend is very helpful.
Your financial planner or other advisors can also refer you to great resources. Don't discount advisors whom you've only seen once; a good resource could be the agent who manages your car insurance or the attorney who handled your house-closing process.
Online Searches
Online searches are a good way to create a list of advisors to interview and a good way to learn about them before you do. Try a search through the various membership organizations such as NAPFA or the Financial Planner Association. Check the advisor's website. Then search the advisor's name through Google to learn more about his organizational memberships or public activities. Check Appendix B for online sites to research financial advisors.
Some associations charge advisors a fee to be included in their online searches. In this case, realize that you're only seeing a list of advisors willing to pay the fee. Associations such as NAPFA charge a fee for membership, and also require ongoing continuing education to maintain membership and to be included in the online search through their website.
Managing Advisor Turnover
Ask your advisor about his firm's succession plans. What are his plans to transition his clients to a new advisor after he retires or if he is disabled? If the advisor is planning to retire within the next year, ask to meet his successor well in advance to make sure you like her and to help make the transition a smooth one. Advisors in one-person shops may be planning to have a number of other small firms make themselves available as successor advisors. Large firms may be planning to assign clients to one of many younger advisors.
In addition to making sure you understand the people involved in your advisor's succession plan, make sure you ask how your personal information and records will stay secure in the transition.
