How do you choose a financial advisor?

Seeking financial advice

can be daunting, or even down right scary.

Consider this check list before you decide.

•  Look for a FEE ONLY advisor because their compensation is totally based on your interests and not the products that they suggest.  A true advisor will disclose all compensation and all conflicts of interest in writing in advance of the engagement.  This avoids surprises at the end of a long process when the adviser switches to selling.

• Some advisors simply “gather assets” for others. Eliminate anyone who gets fees from third parties for referrals to attorneys, insurance agents, investment advisors, third party managers or separate account managers.

• There is nothing wrong with being a salesman. However, many salesmen call themselves advisers. Face it, their job is to sell products. Don’t seek advice from a salesman. Eliminate all advisers who are also investment brokers and insurance agents who receive commissions from the products they sell.

• Some investment advisers only work with investments. They typically don’t consider the impact of the unique income and expense requirements, income taxes, insurance policies, wills trusts and the aspects of financial life. Eliminate advisers who use canned financial planning software or use none at all.

• By definition, and adviser is a person who gives advice. Experience, expertise or training is not a requirement to be a financial adviser. Young advisers can learn from a team. Eliminate inexperienced independent advisers.

• A fiduciary is required by law to protect the interest of the client.  Brokers, fee based advisers and agents represent the interests of the companies of whose products they sell. Seek out a fiduciary.

• Not all fiduciaries are the same.  Some will disclose the conflict of interest created by financial relationships with others. Seek a fiduciary who pledges not to accept income from sources other than from the client.

The team at FFP Wealth Management is a fiduciary who offers comprehensive financial planning and advice to clients after receiving a disclosure form and after a formal engagement. We have offered financial planning and investment since 1990.  In addition, FFP will manage investment accounts for clients who seek income and growth from their investments with more stability that the typical stock portfolio or mutual fund.  FFP will not accept commssions, referral fees or any form of compensation from products we buy for client or refer to others.  It will be clear that we only work for you.