Apples & Oranges – 3 Tips for Picking the Best Financial Advisor for Your Future

By Brian J. Cunningham, CFP®
Who are the people you trust most in your life? Besides close family members and friends, your group of valued advisors probably includes a doctor, dentist, attorney, accountant, insurance agent, veterinarian, and maybe a car mechanic. According to US News and World Report, studies show that if you want to be better prepared for retirement and more confident about your future, you'll include a financial advisor on this team. You trust the others by their credentials, reputations, and your personal experiences with them through the years. How do you compare the competencies of financial advisors, wealth advisors, and financial planners with so many letters next to their names?

I have been a private wealth advisor for over 25 years, serving hundreds of successful business owners, professionals, retired individuals, and their families. Many of these retirees have relocated to the Myrtle Beach area and are looking for someone local to provide the expertise and level of service they enjoyed previously. Our younger clients who haven't had a financial advisor before aren't sure how to analyze an alphabet soup of credentials they find during a search on Google.

In this first blog, I'm offering guidance to help find the next member of your trusted team of advisors.

1. Which Credentials Matter?
Unlike your doctor or lawyer, there is no standard of conduct or specific professional degree required for offering financial advice. However, if an advisor promotes themself as a fiduciary financial planner, they are held to the highest fiduciary standard for acting in their clients' best interests. Before you make any decisions, it's helpful to know the most recognized credentials and designations among all the others that do not represent the same level of training or experience.

CERTIFIED FINANCIAL PLANNER™
I recommend to my younger clients that we start our journey together by creating a comprehensive plan addressing every aspect of their financial life. This holistic plan is best developed by an advisor, who, like me, is a CERTIFIED FINANCIAL PLANNER™. Advisors who have earned this designation have passed an extensive exam covering investment, insurance, taxes, retirement, and estate planning. They engage in regular continuing education to maintain this status and have at least three years of professional experience. This high level of expertise is valuable, but perhaps of more importance, unlike those without this credential, we are bound to the stringent CFP® Code of Ethics:
1. Act with honesty, integrity, competence, and diligence.
2. Act in the client's best interests.
3. Exercise due care.
4. Avoid or disclose and manage conflicts of interest.
5. Maintain the confidentiality and protect the privacy of client information.
6. Act in a manner that reflects positively on the financial planning profession and CFP® Certification.

Chartered Financial Analyst®
Whether you are starting your experience as an investor or seeking a financial advisor to help you reposition your portfolio as your needs change, a well-established, experienced CFP® is a good choice. Another credential to consider for help with your investments is that of Chartered Financial Analyst® (CFA®). Ask your potential financial advisor if they have or are engaged in completing this designation requiring three rigorous study levels.

2. A Reputation for Reliability?
A referral from a friend or a valued advisor is an excellent way to start your wealth manager search. Being first in a Google search isn't nearly as reliable as a measure of competence, capability, or reputation as an enthusiastic endorsement from a trusted source. Ask around and find out who your colleagues suggest. Most of my new clients come to me because of word-of-mouth recommendations.

3. A Potential Lifetime Partnership?
Can you imagine yourself in a longstanding relationship with a particular financial advisor? I suggest that you determine what is important to you and find out if they share your values, such as:
Commitment – Do they understand your goals, desires, dreams, and are they committed to helping you realize them?
Communication – Are they proactive in keeping you apprised of any new laws, investment opportunities, or economic forces that might impact your plans?
Clarity – Do they present complex financial issues in a way that you can understand? Do they openly explain all costs, fees, and potential conflicts of interest?
Comfort – Does their office reflect their personality? Do they treat you like you are their only client?
Compassion – Do they genuinely care about you and your family and demonstrate that in every interaction?

If this seems like a daunting challenge, don't despair and don’t stop looking until you find the best person to guide you. Visit them and find out what they are like in person. If that gut feeling we all should trust more tells you that they are the one, use the tips above to support your feelings with facts. I am always happy to meet with potential new clients. Call me at (843) 213- 1819, and we'll schedule a time to talk.