The other day while I was scrolling through Reddit, I came across a question similar to ones we get emailed to us frequently in The Advicer column: How does one find a good financial planner at a fair price? Here was the question posed on Reddit:
There isn’t a ‘secret language’ — and actually what you want from interviewing an adviser is someone who speaks clearly and without jargon so you are clear on what they will deliver you and when. “What you’re asking for is not unreasonable for a financial adviser to provide but you may have to interview a few advisers to find one that packages their offering in a way suitable to you,” says certified financial planner Josh St. Laurent at Wealth In Yourself.
CFP or CFA? As for the type of adviser, you may want to consider a certified financial planner, one commentor noted: “If you want a financial plan roadmap, you would be looking for a certified financial planner , one of the things they can tell you want rate of return is required to meet your goals.”
Advice-only advisers vs. AUA arrangements vs. other models You said you wanted an advice-only adviser, and that can make a lot of sense. An advice-only adviser provides guidance on financial planning without providing investment management services. For someone capable of managing their own portfolio, working with an advice-only adviser can be financially smart.
Another option is this: If you’re looking for specific investment guidance but prefer to push the button on your own, you can inquire about advisers that offer their services under an assets under advisement arrangement. “With this model, the adviser will provide specific guidance on request for either a flat fee or a lower percentage fee and you will be responsible for executing that advice in your own accounts,” says James.
How do I ensure the adviser does what I want? To ensure you’re getting the help you want, the best thing to do is ask your prospective adviser directly how they approach planning. “Some get to the level of specific investment recommendations and some stop at an asset allocation. Almost everyone offers a complimentary introductory call and that’s the perfect time to ask how they handle investment recommendations,” says certified financial planner Cristina Guglielmetti at Future Perfect Planning.