Selecting the right financial advisor is important and can prove to be an overwhelming task. Here are a few considerations that should factor into the decision-making process.
Appropriate Credentialing— Eighty-two percent of investors think it is critical their advisor meets a rigorous set of standards to be certified according to IMCA research in 20151. There are hundreds of credentials and designations available, all with varying degrees of credibility. Does your advisor hold relevant credentials that require the “four E’s”—experience, education, examination, and ethics? Always investigate thoroughly before choosing a financial advisor for you.
Background— Referral through trusted sources is one of the best ways to find an advisor for your situation. IMCA’s website provides a search function that helps you find CIMA professionals and CPWA professionals in your area.
Fees— You should know exactly how your advisor will be compensated. CIMA professionals fully disclose to clients all services provided and compensation received as required by the IMCA Code of Professional Responsibility.
Chemistry— Selecting an advisor (like selecting a doctor) is a personal choice, and you should feel at ease and comfortable with the individual you choose.
Any advisor you consider should hold credentials and securities licenses, depending on their areas of expertise. What should you ask about your financial advisor’s certifications?
1Findings based on 1,041 responses to If Not Now Research, Inc. survey, 2015