Ask the Retirement Doctor

Question: I am thinking about hiring a financial advisor. Where should I go to learn more about choosing the right person? -Karen E.

Answer: A financial advisor is a very lose term. When I went to the state of CT and The Common Wealth of Massachusetts websites, I could not find any requirements that an individual needs to accomplish in order to become a financial advisor. Other than obtaining an insurance license or securities license, there were no educational requirements or any designations that one should p. Imagine if you had a friend who read a book on medicine and bought a scalpel, would that make them a qualified surgeon?

When you hire an advisor that has degrees, designations, etc. you know that they have passed very stringent exams, testing their knowledge in financial services. In addition, they had to maintain continuing education credits.

I am always fascinated why someone would trust an individual without any professional designations, degrees, etc. in finance to handle their finances. In financial planning you may not see the results for many years to come. When I review new clients’ financial situations, I am appalled at some of the recommendations that they had been given. Many of these may cost them hundreds of thousands of dollars of potential income.

You should look for someone that has knowledge of taxation, investments, life insurance, disability insurance, how to finance elder care, liability insurance, retirement plan distributions, estate taxation, etc.

FINRA has descriptions for many of the financial designations as well as complaints against advisors at: http://www.finra.org/. The American College for Financial Planning also has descriptions available at their website: http://www.theamericancollege.edu/ as well as The College for Financial Planning’s website: http://www.cffp.edu/.

You may contact our office if you have any additional questions. We would be happy to help! 1-800-406-1595

Securities offered through Cambridge Investment Research, Inc, a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Retirement Doctor, LLC, a Registered Investment Advisor. Cambridge and Retirement Doctor, LLC. are not affiliated