How Can You Find Help?
By: Source: AARP.org Date Posted: 2007-09-14 18:49:55.470550-04:00
For most people, the search for a financial professional begins with questions posed to friends, family, and business colleagues—and that's a great place to start. It makes sense to ask those you have something in common with if they have a professional they work well with. And, professionals who already work with other employees of your company may already have valuable expertise in your company's retirement plan, compensation programs, benefits, and stock option plans. However, because a professional will be working to help secure your financial future, it's important to base your decision on more than a friend's recommendation.
If your questions to friends and co-workers don't turn up any names of financial professionals, these websites provide a great start.
Financial Planners
The Financial Planning Association's PlannerSearch is an easy-to-use nationwide database that connects you with CFP® professionals in your area based on your specific needs.
Certified Financial Planner Board of Standards' Search for a Certified Financial Planner™ professional enables you to find a planner by last name or search by zip code. The database displays those authorized by the CFP Board to use the CFP certification mark.
The National Association of Personal Financial Advisors (NAPFA), a member association of fee-only financial planning professionals, allows you to search its membership.
Investment Advisers
Most investment professionals must fill out a form called "Form ADV" and file it with either the Securities and Exchange Commission (SEC) if they manage $25 million or more in client assets or the state securities agency in the state where they have their principal place of business, if they manage less than $25 million.
The ADV consists of two parts. Part I contains information about the professional's education, business, and whether they've had problems with regulators or clients. Part II outlines the professional's services, fees, and strategies.
You can get copies of Form ADVs from the investment professional, your state securities regulator, or the SEC, depending on the size of the adviser.
You can find out how to get in touch with your state securities regulator through the North American Securities Administrators Association, Inc. (NASAA) or by calling (202) 737-0900.
If the SEC registers the investment professional, you can get the Form ADV at a cost of 24 cents per page (plus tax and postage) from the SEC at:
Office of Public Reference
Room 1580
100 F Street, NE
Washington, D.C. 20549-2521
Phone: (202) 551-8090
Fax: (202) 777-1027
E-mail: publicinfo@sec.gov
You can view an investment adviser's most recent Form ADV online by visiting the Investment Adviser Public Disclosure (IAPD) website. At present, the IAPD database contains Forms ADV only for investment professional firms that register electronically using the Investment Adviser Registration Depository. In the future, the database will expand to encompass all registered investment professionals, individuals as well as firms, nationwide.
Stockbrokers
The Central Registration Depository (CRD) is a computerized database that contains information about most stockbrokers, their representatives, and the firms they work for. You can find out if stock brokers are properly licensed in your state and if they have had run-ins with regulators or received serious complaints from investors. You'll also find information about the stockbrokers' educational background and work history.
You can ask either your state securities regulator or the Financial Industry Regulatory Authority (FINRA) to provide you with information from the CRD. Your state securities regulator may provide more information from the CRD than FINRA, especially when it comes to investor complaints. You can find out how to get in touch with your state securities regulator through NASAA's Web site. You can go to FINRA to get CRD information or call them toll-free at 1-800-289-9999. You can find out how to get in touch with your state securities regulator through NASAA's website.
You can also download a helpful brochure, " BrokerCheck (PDF)" from the FINRA site.
Insurance Agents
Your state insurance department is your best source for information on company and agent licensing requirements. Simply visit The National Association of Insurance Commissioner's (NAIC) web site and click on "NAIC States and Jurisdictions." Additionally, the Independent Insurance Agents & Brokers of America (IIABA), a national alliance of 300,000 business owners and their employees, offers help at "Find an Agent."
CPA/Accountants
The websites of local state societies of CPAs have helpful search tools. Additionally, you might consult national online directories www.CPAdirectory.com, or www.accountantsworld.com. The American Institute of Certified Public Accountants lists CPAs whom they have certified as Personal Financial Specialists.
Estate Planning Attorneys
The National Academy of Elder Law Attorneys and the American College of Trust and Estate Counsel websites provide search tools for you to locate attorneys who focus on estate planning, probate, and elder law issues.
Other Resources
Think about professional and community organizations you belong to. Some may have ties to financial firms that are worth exploring. Also, consider the financial institutions and companies you already do business with. Your employer may offer access to a call-in center, or the mutual fund companies you invest with may offer professional management services if your accounts are of significant size.
Additional Related Links
Do You Need Professional Financial Help?
Which Professional is Right for You?
What Questions Should You Ask?
What If You Don't Want Help?
Money and Work Publications Order Form
Choosing Your Financial Professional
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