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
-
Stock Market Today: Growth Concerns Drag on StocksForward-looking commentary from a major retailer outweighed its backward-looking results as all three major equity indexes retreated on Thursday.
-
Why Alibaba Stock Is Soaring After EarningsAlibaba stock is higher Thursday after the China-based e-commerce platform beat expectations for its fourth quarter. Here's what you need to know.
-
Stressed About Doing Your Taxes? Use These Easy Tips to CopeIf the thought of filing your taxes puts you on edge, you're not alone — nearly 65% of Americans say they're stressed during tax season. Here's how to cope.
-
Three Ways to Get Your Finances in Better ShapeWant fitter finances this year and beyond? Start by making full use of all your workplace benefits — from 401(k)s to budgeting apps and wellness programs.
-
Rethinking Income When You Retire: No Paycheck, No ProblemWhen you retire, you'll need to adjust to the reality of depending on assets instead of a regular paycheck. For that, you'll need a new financial strategy.
-
How to Support Your Parents Without Derailing Your FinancesPutting your aging parents' financial house in order can give you a clearer picture of where they need support and how to balance that with your own plans.
-
Here's How Estate Planning Can Make Your Retirement EasierThese estate and legacy planning tools and strategies can help lower your taxes, protect your wealth and more, leaving you to relax during your golden years.
-
Why 'Standard' Digital Background Checks Can Be So UnreliableMissing online data, as well as stringent federal and state privacy rules, make it difficult to discover a prospective employee's or tenant's criminal past.
-
Are You a High-Income Earner? Three Unexpected Reasons to Save More Than You Think You ShouldHigh-income earners sometimes put off saving because they think they have plenty of time and money to do it later. That's not always the case, though.
-
How Financial Professionals Can Empower Their Female ClientsThese three strategies can help advisers better serve women as they navigate unique financial challenges and build confidence.
