If you are a millennial you may feel like you have a target on your back. Local financial advisors, stockbrokers, bank representatives, CPA firms, and online firms constantly solicit you. You have a bewildering number of choices and making the wrong selection decision can undermine the achievement of your financial goals. Millennials are considered the youngest group of investors and your potential to accumulate retirement assets is greater than someone older than you, based on your timeline for investing as well as being positioned to inherit from Baby Boomers.
Here is a top ten list to assist you when selecting a financial advisor who will influence or control your financial decisions.
Always focus on the documentation of information that describes their credentials, ethics, business practices, and services. The ten most important types of information that you want documentation on are:
- Full transparency. The advisor must be willing to provide the factual information you need to make the right decision.
- Degrees from accredited colleges and universities. There are no minimum education requirements for financial advisors.
- Applicable financial service experience. There are no minimum experience requirements for financial advisors.
- Industry certifications. Check online to validate the quality of their certifications.
- Compliance record. Avoid advisors who have a history of client complaints.
- Fiduciary Status. Fiduciaries are held to the highest ethical standards in the financial service industry.
- Method of Compensation. The appropriate to pay for financial knowledge, advice, and services is with a fee.
- Expenses. You want full disclosure for every penny of the expense that is deducted from your accounts.
- Ongoing services. You need ongoing financial advice and services, not a one-time sales event.
- Performance Measurement Reports. You should request monthly or quarterly performance reports that document your results.
Discussing these ten tips should result in your advisor providing you with this information. If you do not receive the information you request, you may want to reconsider who you choose to work with. Our firm welcomes questions from our investors and potential investors, and believe that transparency is key to your financial success.
