December 8, 2004  Email this  Print this
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YOUR FINANCES
Make a Financial Match Online
(Page 3 of 3)
by Erin Burt
Fee-for service
Paladin Investor Resources prides itself on a high level of quality. Of 10,000 advisers screened for the network, only 500 have made the cut. All 500 derive some or all of their compensation from fees and have an average of 15 years of experience: 77% have multiple certifications. But you'll have to pay to access the site. Right now, $49 gives you 90 days of access.
To search for an adviser, you first must enter the amount of assets requiring management. The site then screens out advisers with minimum asset requirements you may not fulfill. Then, you select your state of residence and what kind of financial professional you are looking for.
An abundance of information comes up with your results. Paladin supplies the most detailed biographies of any of the sites we reviewed, all in a quick-reference format that makes for easy comparisons. In addition to the advisers' contact info, specialties and certifications, it details their fee structures, tells you how many years of experience they have and outlines their investment philosophy in a simple yes-or-no Q&A format.
Paladin also rates each adviser on a variety of competence, integrity and risk factors, including education, certifications, number of clients, potential conflicts of interest and overall business model.
We searched Paladin for a financial consultant in Florida with no minimum asset requirement, and got a list of 17 advisers. Only seven of them are actually located in Florida -- the others are licensed in the state, so they could work with you over the phone or through e-mail, which can work well for most spot-financial planning.
If you have your heart set on a face-to-face meeting, Paladin is a good source to zero in on a well-qualified adviser. But finding a fee-based planner in your area that meets Paladin's standards could be tough. In this example, if you lived in Miami and wanted a face-to-face visit, Paladin gives only one recommendation in your area. Live in Jacksonville, and you're out of luck. However, if you don't find what you're looking for online, Paladin does provide a custom search.
Paladin also offers a variety of resources for subscribers, including interview guides to lead you through your first meetings with a new adviser, and screening questionnaires if you want to evaluate a planner not included in the Paladin network. Non-subscribers can sign up for a free monthly newsletter that talks about different investing topics and gives tips on evaluating your relationship with your planner and how to make the most of it. The site also offers a handful of tests to size up your current financial planner.
Do your homework
Using a Web site, no matter which one you choose, is only the first step in finding the right financial planner for you. No matter how rigorously the candidates are screened, it's important to select an adviser who works well with your personality and with whom you feel comfortable.
Most advisers will schedule a free initial meeting during which you should clarify the services they will provide and how you will be charged. You can print out a brochure from the National Association of Personal Financial Advisors entitled "How to Choose a Financial Planner," to help you prepare for an adviser interview. Among the suggested questions:
- Are there financial incentives for you to recommend certain products?
- Do you provide a comprehensive written analysis of my financial situation and recommendations?
- Do you take custody of, or have access to, my assets?
- Do you have clients who might be willing to speak with me about your services?
Also, it's important to evaluate the planner's personality, says GPN founder Sheryl Garrett. "Do you feel like they listen to you? Do they answer your questions in a forthright manner?"
You should run your own background check on the candidate or his or her firm -- even if you used a site that vets advisers' credentials -- to make sure they live up your standards. Advisers who manage clients' money, for example, are registered investment advisers and must file documents with the SEC or state regulators. You can use the SEC's Investment Adviser Public Disclosure site to find a candidate's form ADV, which contains the adviser's educational background, professional experience, method of compensation and disciplinary information. Or simply ask the adviser for a copy.
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GETTING STARTED
