Tips for Selecting a Financial Advisor You Can Trust

Tips for Selecting a Financial Advisor You Can Trust
News from Morningstar.com:

Many people decide they need a financial advisor because they don’t have the time or inclination to set up and maintain a financial plan on their own.

Unfortunately, those would-be outsourcers soon find that the landscape for financial advice is like the Wild West, featuring competing designations, varying compensation structures, and different levels of competence. Many find that identifying a good advisor isn’t nearly as simple as they thought it would be. Morningstar.com Discuss forum contributor Gary11112 quipped, “The ironic thing is if you are financially savvy enough to adequately evaluate the collection of folks out there calling themselves financial advisors, you don’t need one.”To help harness our users’ firsthand knowledge of how to put an advisor through his or her paces, I recently asked Morningstar.com Discuss forum participants to share how they had gone about picking one. Posters shared valuable guidance, including tips on evaluating compensation schemes, credentials, and performance. Other readers opined about the value of less-tangible factors, including the advisor’s willingness to educate his or her clients. Although it didn’t relate directly to my query, readers also debated whether using an advisor is money well-spent. Satisfied do-it-yourselfers were well-r…………… continues on Morningstar.com

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