For an individual investor, finding the right financial professional can be a challenge.
To start with, there’s the bewildering array of titles, including broker, adviser, planner, manager and even coach.
And then there’s all those letters (RIA, CFP, CFA and so on) and numbers (Series 6, 7, 65 and 66) that represent certifications and licenses.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
By the time they get to the method of compensation (fee-only, fee-based or commission) and the fiduciary vs. suitability discussion, the majority of the people I meet have no idea what it all means. It’s no wonder so many simply opt for the brand-name brokerage they see on TV instead of the small independent adviser who might be the better choice.
But when you go with Wall Street instead of Main Street, you lose a few things:
Unfortunately, we’re kind of stuck in this David vs. Goliath mode in the financial industry, where the average person on the street doesn’t even know there are different levels of advice and attention.
A lot of that is marketing. All those radio and TV commercials, the golf tournament sponsorships and stadium-naming rights build a brand and get the word out in a way that an independent adviser can’t afford.
But when it comes to minding your portfolio and your plan, bigger isn’t always better.
Do your homework. Research online. Ask friends and colleagues if they have an adviser they like. Attend seminars. Don’t hesitate to quiz people about compensation. And interview multiple advisers until you find one that’s a good fit for you.
Kim Franke-Folstad contributed to this article.
Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Brighter Financial Capital Management, LLC, a SEC Investment Advisor. Insurance products and services are offered through Clark & Associates, Inc. Financial Solutions, an affiliated company. Brighter Financial Capital Management, LLC and MAS are separate entities, independently owned.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Megan Clark is not affiliated with, or endorsed by Kiplinger.com.
Related Content
-
Walmart's Transformative Ways Spark a 100,000% Stock ReturnWalmart's strategic store expansion and relentless cost-cutting have catapulted its share price over the years.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
How Roth Accounts Can Ease Your Tax Burden in RetirementStrategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love.
-
Are You a High Earner But Still Broke? Five Fixes for ThatIf you're a HENRY (a higher earner, not rich yet) but feel like you still live paycheck to paycheck, there are steps you can take to get control of your financial future.
-
Tax Diversification: Smart Ways to Preserve Your Nest EggA long and active retirement may be costly — and may even bump you into a higher tax bracket. Paying some taxes on your savings now could be the answer.
-
How to Thrive in Retirement: Balancing the TradeoffsTo cultivate a happy retirement, you need to tend to it as carefully as you would a flourishing garden, and that means making the right choices for you.
-
Kick the IRS to the Curb in RetirementThat 401(k) or traditional IRA you've filled with your hard-earned money could turn into a tax bomb. Before it blows, see if a Roth could help rescue you.
-
How to Stop Scammers Targeting Your Retirement SavingsAnyone can fall victim to a financial scam, but retirees can be more vulnerable than most, so stay alert to these common tricks that could catch you off guard.
-
Choosing a Trustee? These Six Tips Can Help You Pick WiselyHow can you be sure a trust will be managed properly, without causing a headache for the beneficiaries? The key is choosing the right trustee (and a backup).
-
Five Things That Are Spiking Your Insurance PremiumIt's a drag, but just as your expenses keep rising, so does the cost of doing business as an insurance company. That means higher premiums.
