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INVESTING
Finding the Right Pro
by Anne Kates Smith

Like many young couples, Ben and Carrie Edwards wanted a sound plan to serve as the cornerstone of their financial future -- a future that might someday include children and would certainly one day include retirement. "We wanted good advice, but we didn't have a lot of money or a lot of assets," says Ben, a 27-year-old software engineer in Kansas City, Mo.

Bob Rathert, 64, a retired Anheuser-Busch executive in Williamsburg, Va., has plenty of assets and a lot of acumen. But turning a nest egg that consisted mostly of his employer's stock into a diversified and dependable retirement portfolio has at times been a feat of financial alchemy.

Rathert and the Edwardses solved their money problems the same way -- by calling in professionals. Whether driven by a life event, such as marriage or retirement, or simply by the realization that successful investing isn't as easy as it once seemed, people of both modest and princely means are seeking out experts to help meet their financial goals. The good news is that more advice is available to more investors than ever before. That's the bad news, too. Sorting out the choices is daunting.

Shocking but true: Just about anyone can hang out a shingle and call himself or herself a financial planner. Professional designations indicate a measure of training and experience. But how do you distinguish between them? And how do you know what to pay when compensation schemes are all over the map? "Many investors turn over money to the wrong people," says Jack Waymire, author of Who's Watching Your Money? (John Wiley & Sons, $24.95). "You can't just go to the Yellow Pages and look up quality adviser." Maybe not. But we'll guide you through the maze and, in the end, give you an idea of how to spot the real thing: a quality adviser.

The generalists

Your first order of business is to decide what level of service you want. If you seek a basic road map for your family's fiscal journey, then you'll want a financial planner. These generalists should be able to tackle almost any money question you have, whether it's household budgeting, investing for college and retirement, long-term-care and disability insurance, or tax strategies. A certified financial planner (CFP) has completed a course of study and passed an exam on the financial-planning basics, has at least three years of experience and must adhere to a code of ethics. Credentials that reflect similar training are chartered financial consultant (ChFC), in the insurance industry, and personal financial specialist (PFS), in accounting.

Or you may prefer someone to help you solely with investments. Such market mavens -- whether they're financial planners, stockbrokers, bankers or money managers -- may just steer you toward investments, or they may manage your portfolio themselves or farm out your assets to managers whom they supervise. An investment-savvy designation to look for is chartered financial analyst (CFA), for a person who is trained in economics, financial accounting and portfolio management.

With more than 650,000 financial advisers in the U.S., finding an adviser is far less of a problem than finding a first-rate one. Friends and family are good sources of recommendations, especially if their monetary circumstances are similar to yours. Other professionals familiar with your finances -- accountants, lawyers, insurance agents -- may know an adviser suited to your situation.

The Internet can also be a good starting point. A few online registries will winnow the field for you. Advisers in a registry administered by Paladin Investor Resources, founded by author Waymire, do not pay to be listed and must meet exacting standards. Of 10,000 advisers screened, only 500 so far have made the cut. All 500 derive some or all of their compensation from fees and have an average of 14 years of experience; 72% have multiple certifications. A fee of $149 gives you access to the registry, at www.paladininvestors.com, for 60 days.

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