How to Get an Independent Financial Advisor

Finding an independent financial advisor can be a daunting task in this financial climate. Most financial advisors are courted by large financial firms and often promised large signing bonuses to bring their services and clients over. To make matters more confusing, some of these independent financial advisors are serviced by some of the big firms. For many however, an independent financial advisor will be the key to having real face time, personalized service, and financial planning that is in tune with your goals.

Difficulty: Moderately Easy

Instructions

1. Listen to people you trust. Word of mouth is the single best way of finding a great independent financial advisor. Many times, people who operate or own their own business will seek out independent financial advisors because they usually share in the same spirit of entrepreneurship. In fact, many investors found their advisor by simply asking their family doctor about who handled their savings.

2. Find online directories of financial advisors. Though it is not wise to simply consult the yellow pages for independent financial advisors, it can help to see what your local options are. Further, knowing where a financial branch office is located allows you to simply stop by and have a no strings attached conversation with the financial advisor.

3. Have a big financial firm put you in touch with a financial advisor in your area. Though it may come a surprise to many, most independent financial advisors are still serviced by big box firms such as Merrill Lynch/Bank of America or JP Morgan. Though you may wish to avoid these big firms altogether, these services are often times limited to producing tax reporting statements and monthly reports. If you are very concerned about having a large firm handle your capital, you may wish to ask an independent financial advisor directly if they are serviced by a big firm.

4. Have a conversation with the advisor and see if it is the right fit. The whole point of having an independent financial advisor is to have greater access to their knowledge and experience. If the advisor seems aloof or indifferent you should consider looking elsewhere. Even worse, some advisors will treat some clients like second class citizens if they have a significant amount of capital to invest. Avoid these types as well. It will be much harder for a client to inquire about their own money if your financial advisor sees you as a nuisance.

5. Ask about their credentials. A good independent financial adviser should be registered in their Series 7 and may hold other registrations as well. This shows that the financial advisor is in good standing and has the base knowledge necessary for investing your money.

6. Discuss how much control you would like to have over your funds. An independent financial advisor may be a great wealth of knowledge, but often times your tolerance for risk may differ from theirs. Before investing with this advisor you should know how much control you will have in the case you wish to move your money into a safer or riskier investment; will the advisor be responsive to your requests, will they get back to you in hours, days, or weeks; these are the questions you will want answered to find the best working relationship with your advisor.

Tips & Warnings

• Outline your financial goals before going to visit an independent financial advisor.

[jeni10]

on 9/1/2009 This is a great article; very timely in today's turbulent economic times. Well written and easy to follow. 5* and I recommend.