The Holy Grail…Screening for Smart Advisors You Can Trust

Abstract

This chapter unearths one of the most perplexing aspects of realizing your financial goals: selecting an honest and expert financial advisor who looks out for you. The task is easier said than done, since the financial services industry largely obscures important knowledge consumers need to screen for bad actors and expensive products. Tips for navigating the advisor landmines include checking if your candidate is a fiduciary, avoids conflicts of interests, is properly trained, and actually delivers what is promised: advice—not commission products. After due dilligence, he key to managing your manager is to monitor and check-up on them periodically. Just as you must commit to lifelong financial education, so too must you engage in lifelong due diligence on your advisor. Even if your advisor means well in promoting your best financial interests, their employing firm may not.