The following criteria are from a post by Larry Swedroe and explain his approach to finding a trusted advisor:
First, one should always make sure that you separate the functions of advisor/money manager, trustee, and custodian. Anyone who did that for example would have avoided the Madoff type problems
Second, one can find a trusted advisor by following these principles, requiring the firm to adhere to these 11 commitments.
NOTE: A Richer Life Financial Planning meets all 11 of these criteria.
1.Our guiding principle is that we will always do what is in the best interest of our client. 2.We provide a fiduciary standard of care— the highest legal duty that one party can have to another. 3.We are a fee-only advisor—avoiding the conflicts that commissioned-based compensation can create. 4.All potential conflicts are fully disclosed. 5.Our advice is based on the latest academic research, not on our opinions. 6.We are client centric—we don’t sell any products, only advice. 7.We provide a high level of personal attention—each client is assigned a team of professionals with which they will develop strong personal relationships. 8.We invest our personal assets, including our profit-sharing plan, based on the same set of investment principles, and in the same or comparable securities, that we recommend to our clients. 9.We develop investment plans that are integrated into estate, tax, and risk management (insurance) plans. The plans are tailored to each individual’s unique personal situation. 10.Our advice is always goal-oriented—evaluating each decision not in isolation, but in terms of its impact on the likelihood of success of the overall plan. 11.Our comprehensive wealth management services are provided by individuals that have the CFP, PFS, or other comparable designation.
Then you can check with, get references from, other respected professionals such as attorneys and CPAs as well as carefully reviewing the firm’s ADV.
I am pleased to say the A Richer Life Financial Planning meets all 11 of these criteria.
If you have any questions about this article or our financial planning services, please contact me via email at firstname.lastname@example.org .