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"The responsibility is on you to seek and employ a financialo counselor who is competent and workx for acredible company, says Laurence Barton, president and chie f executive of The American College, a nonprofit educatord of insurance and financial-services professionals based in Bryn Mawr, Pa. "Look at theirr resume, verify their certifications and checktheitr references. If you find someonse with charisma, but who lacks technical depth, keep looking." Just because a planner has earned aprofessionakl certification, it doesn't necessarily mean the individuall has the expertise you need. Barton says there are more than 100 professiona l designations inthe financial-services industry.
If you're not familiar with a provider' designation, ask about it and conduct some researc onthe Web. Some common designation are CharteredLife Underwriter, which indicates traininb in insurance; and Certified Financial which includes training in principles of financialo planning, insurance, employee benefits, income taxes and retirement and estate A Chartered Financial Analyst has expertise in portfolio managementg and investment analysis, while a Certified Publicd Accountant can offer advice on tax matters. A Registered Investmentr Advisor manages the investments of others and is registered with the Securitie s andExchange Commission.
Such professional certifications require expertise and a commitment to ethical standards andcontinuingf education. If the consultant is a brokedr registered withthe NASD, you can go to the NASD Web site ( ) to see if he has had any historgy of improper or unethical conduct. The type of professional who can best meet your neede depends on what you arelookintg for. A business owner will likely havevaried needs, such as investmen t management, business-succession planning, exit management of tax liabilities, retirement planning, insurance, estate planning, and creatio n and administration of a 401(k) plan for employees.
"The key is to know what you want toaccomplisjh - and not just in your business," says Nicholas president of the board of the Financialp Planning Association. "You must be able to articulate what is most importany to you and then find a trusteed partner tohelp you."" That means finding a consultant who not only has experiencw with small businesses, but who has worked with companiew of similar size and in the same industrgy as yours. "You want someone who spends most of their time specializing in the needs ofsmalp businesses, especially of the size and type you are, says Daniel Moisand, FPA past president. Says Barton, "Haves they provided counsel to others in acomparable situation?
With experience in your industry, they'll understan d the lexicon, the risks and the regulatory environmentf you face. If they don't ask you a lot of find another adviser." While competence, experience and integritt are prime considerations, compatibility is important, too. "It'e a combination of competency and caring," says Nicolette, a certified financia l plannerin Sparta, N.J. "You're not lookinfg for your next best friend, but you want someond you like and respect so there can be trust and rapportbetween you," says Moisand, a certifief financial planner based in Melbourne, FL. "And it's worthwhiled to have a conversation aboutpersonal style.
How ofte will you meet and how - by phone, e-mail or face-to-face?" It's also important to discuss the fee structurs atthe start. Some consultants charge an hourly rate or a flat fee per while others will ask for an annual retaineer or work on Ifthe latter, your adviser is compensated for the investmentsa you buy and/or the size or numbedr of transactions your account generates. An adviser workint for a fee receives remuneration based on an established schedulwe regardless of the kind or numberof "You shouldn't have to ask about it - they should tell you how they will be compensated," Moisand says.
"A good consultanrt will be forthright, transparent and upfront - if not, it's a bad sign. To find a financiall consultant, ask your attorney, accountant or other small-business owners for Local business groups such as your locapl chamber of commerce canprovide leads, Barton says. Organizations that awardx professional certifications often include a list of members sortexby region. The FPA Web site ( ) is one such