Page 4 - Trading #101 Course – Part THREE: SETTING UP YOUR BUSINESS – www.traderscoach.com

TRADING #101 COURSE – PART THREE: SETTING UP YOUR BUSINESS – WWW.TRADERSCOACH.COM

Tips on Selecting a Qualified Financial Adviser

Selecting a qualified financial adviser is a task that deserves your undivided attention. If
you have a sizable net worth, you owe it to yourself to bring a specialist onto your team
who has experience in portfolio management and can guide you.

There are costs involved in hiring a specialist, but a competent adviser is well worth the
investment. Remember, you are the boss. Make it clear to your adviser that you have
goals and expectations and the portfolio’s performance will be monitored.
Here are some tips that will serve you well in finding the right person for the job:

• Interview two or three advisers in person at their offices prior to making your final
choice.
• Have a list of questions to ask such as: What is your investment strategy? What
are your credentials? Are you a Certified Financial Planner (CFP)? How many
years have you been a financial adviser? What fees would be charged? Do you
use risk control? How do you diversify a portfolio? What kinds of annual returns
do you get on your clients’ portfolios?
• Ask for references of other clients you can talk to, and if references are available,
call them and ask questions such as: How long have you been using this
adviser? Are you happy with the adviser? Can you name one strength and one
weakness of the adviser? What kind of annual return have you received on your
portfolio while using the adviser? What kind of monthly statements or reporting
are you receiving?
• Outline a list of priorities that you want the adviser to address and ask how the
adviser would handle them.
• Check to see if there are any complaints registered on the adviser made with the
National Association of Securities Dealers (NASD) or the Securities and
Exchange Commission (SEC).
• Do an online Google search on the adviser and see what comes up.
• Check the adviser’s firm with the Better Business Bureau (BBB).
• Make sure the adviser will prepare a written financial plan for you, and find out
what the fee for that would be, if any.

As Steve Cox, BBB spokesperson, said, “The fact that Bernie Madoff was well-known
and respected despite operating an elaborate Ponzi scheme for years—that cost his
clients upwards of $50 billion—shows that finding someone to trust with your money
isn’t as simple as choosing the firm that yields the highest returns. Consumers need to
apply the same care and concern in selecting a financial planner that they would use in
selecting a doctor, lawyer, or other professionals.”

Your relationship with any adviser is built on trust and confidence in the person’s ability,
so take the time to do your homework and fully research the planner you choose to

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