ROSEVILLE, Calif., April 4, 2006 — Selecting a financial planner is tougher than most people think. That's according to Paladin Registry, LLC (http://www.paladinregistry.com), a firm that provides free education, matching, and documentation services to investors who rely on financial planners to achieve their goals. To help would-be investors choose wisely, Paladin Registry has issued a few important guidelines for selecting financial planners.
Because it is not affiliated with any financial planners or investment advisors, Paladin is uniquely qualified to give investors unbiased advice on how to pick a trustworthy financial planner. In fact, said company founder Jack Waymire, author of "Who's Watching Your Money: The 17 Paladin Principles for Selecting a Financial Advisor" (ISBN 0471476994, John Wiley & Sons, 2003), Paladin's objective is to serve as a reliable source of information and education for investors as they evaluate financial advisors.
As a result, Paladin Registry pulls no punches in its guidelines for choosing financial planners. First up: Don't be dazzled by a sparkling personality. "Personality traits have nothing to do with competence or integrity," Waymire explained. "Investors should not trust a friendly advisor to the exclusion of performing an objective evaluation process."
The first step is trust and means investors should look at the financial planner's compliance record, typically on file with the NASD and state agencies. Investors should choose planners who are Registered Investment Advisors or Investment Advisor Representatives and who acknowledge they are fiduciaries; these professionals are held to higher ethical standards than planners without the same credentials. And because convicted criminals can obtain securities licenses, investors should also check criminal records of any financial planners they're considering.
Next: When it comes to retirement planning, knowledge counts. "It takes thousands of hours of education and experience to be a skilled planner," said Waymire. "Where did their expertise come from? Focus on certifications (CFPR, PFS, ChFC) that provide specialized knowledge, college education, and years of financial services experience – at least five and preferably ten or more. Investors should also ask planners to document their knowledge with copies of certifications and degrees."
Finally, investors should examine financial planners' business practices. Along with the usual checks at the local Better Business Bureau(R) and following up with references, investors should know whether planners are compensated for their services with fees or commissions. "Whenever possible, you want to pay planners a fee for their knowledge and services," Waymire stated. "After all, that's how you pay other professionals. Plus, you want to know what services you will receive and how often you will be able to meet with them."
When investors meet with financial planners, the Paladin Registry's Investor Guides advise them to do one more thing: Get it in writing. "When advisors put information in writing, they lose control over it. And the truth is, you'll get better answers because verbal information can be a sales pitch and it's too easy to deny later on," finished Waymire.
Contact:
Jack Waymire
Paladin Registry, LLC
916-780-8737
Email
http://www.paladinregistry.com