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There is no easy way to vet a financial adviser, but there are some things you should look for when making a decision. A good adviser:
•Should be a registered investment adviser and NOT a registered representative of a broker dealer, an insurance agent or bank employee;.
•Should not have any conflict with your interests. This usually comes from compensation offered or paid by third parties;
•Should accept the obligation to act in a fiduciary capacity and be willing to put this in writing;
•Should base his/her investment advice entirely on your goals, resources and constraints;
•Should be proactive in conducting regular analysis and review of your financial plan and your portfolio;
•Should not demand, nor should you give them, discretionary control of you assets;
•Should have a strong background in analytic methods – science, engineering or mathematics;
•Should not be paid more than about 0.75 percent of your portfolio assets per year, and your total investment costs under the adviser should not be more than 1.0 percent of portfolio assets per year unless special circumstances apply.
•Should be a registered investment adviser and NOT a registered representative of a broker dealer, an insurance agent or bank employee;.
•Should not have any conflict with your interests. This usually comes from compensation offered or paid by third parties;
•Should accept the obligation to act in a fiduciary capacity and be willing to put this in writing;
•Should base his/her investment advice entirely on your goals, resources and constraints;
•Should be proactive in conducting regular analysis and review of your financial plan and your portfolio;
•Should not demand, nor should you give them, discretionary control of you assets;
•Should have a strong background in analytic methods – science, engineering or mathematics;
•Should not be paid more than about 0.75 percent of your portfolio assets per year, and your total investment costs under the adviser should not be more than 1.0 percent of portfolio assets per year unless special circumstances apply.
honest financial adviser
Posted from federaltimes.comPosted in these groups: 
Financial Advisor
Financial Advisor
Posted 8 y ago
Responses: 5
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I found an honest financial advisor in 1985 when I was last assigned to Fort Benning, Georgia SFC Joe S. Davis Jr., MSM, DSL. The company has changed names since that point but they still provide excellent advice and unbiased advice on financial investments and life insurance.
On this net I would consider LTC Stephen C. to be an honest broker.
SP5 Mark Kuzinski TSgt Joe C. Capt Seid Waddell CW5 (Join to see) SFC William Farrell SSgt (Join to see) SGT (Join to see) SGT Forrest Stewart SPC (Join to see) SrA Christopher Wright Maj William W. "Bill" Price Capt Tom Brown SSG James J. Palmer IV aka "JP4" SSgt Robert Marx SGT Robert George PO2 Ed C.
On this net I would consider LTC Stephen C. to be an honest broker.
SP5 Mark Kuzinski TSgt Joe C. Capt Seid Waddell CW5 (Join to see) SFC William Farrell SSgt (Join to see) SGT (Join to see) SGT Forrest Stewart SPC (Join to see) SrA Christopher Wright Maj William W. "Bill" Price Capt Tom Brown SSG James J. Palmer IV aka "JP4" SSgt Robert Marx SGT Robert George PO2 Ed C.
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Here is a foolproof way to vet a financial advisor. Ask him what he makes. If the number doesn't impress you then move on till one of them does make a number that impresses you. The vast majority of the guys who call themselves financial advisors are mutual fund and insurance salesman who make almost nothing.
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LTC Stephen C.
That could be a good barometer, Cpl Joshua Caldwell, but that isn't always the key. I can't think of any financial professionals that are going to tell you how much they make anyway. They must disclose fees of products, but not their annual income. I wouldn't feel compelled to tell anyone how much I make. I would look at it the other way. If a potential client demanded to know how much I made as a criteria for selection, I might suggest he/she look elsewhere.
Many financial professionals utilize variable annuities (VAs) almost exclusively because there's a higher payout (generally) and resulting higher fees. Don't get me wrong, I think VAs are a fantastic vehicle, and use them for my clients when appropriate. However, there are many instances when some other vehicle may be more appropriate and some financial professionals still go the VA route, while not acting in the best interest of the client, which is an imperative.
The Department of Labor has become involved and a great deal of additional regulation is being implemented even now regarding investment vehicles, fees and disclosure in an already over regulated industry.
I'll also add that mutual funds and life insurance have their place. However, it takes the right financial professional to put together the proper portfolio which may include any number and type of investment and insurance products. SFC Joe S. Davis Jr., MSM, DSL LTC Stephen F.
Many financial professionals utilize variable annuities (VAs) almost exclusively because there's a higher payout (generally) and resulting higher fees. Don't get me wrong, I think VAs are a fantastic vehicle, and use them for my clients when appropriate. However, there are many instances when some other vehicle may be more appropriate and some financial professionals still go the VA route, while not acting in the best interest of the client, which is an imperative.
The Department of Labor has become involved and a great deal of additional regulation is being implemented even now regarding investment vehicles, fees and disclosure in an already over regulated industry.
I'll also add that mutual funds and life insurance have their place. However, it takes the right financial professional to put together the proper portfolio which may include any number and type of investment and insurance products. SFC Joe S. Davis Jr., MSM, DSL LTC Stephen F.
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SFC Joe S. Davis Jr., MSM, DSL, I would argue that most investment advisers are honest. The competency of an individual in providing positive results over time is the most key factor. There are many honest financial professionals in the business that are simply incompetent or best case, just not very good.
I agree with most of the criteria above, but I would take exception with the first. It is common for registered investment advisers to act as registered representatives/brokers. It most generally depends upon the needs of the client and the products required to fulfill the need. Also, one's registrations have a lot to do with the capacity in which a financial professional may act. If one has Series 6 & 63 registrations they may only act as a registered representative. If one has Series 7 & 66 (or 63 & 65) registrations, they may act in both capacities. I have a Series 7 & 66, so I am both.
The FINRA (Financial Industry Regulatory Authority) BrokerCheck allows the general public to ascertain the basic qualifications of financial professionals. The link is provided below. LTC Stephen F. SFC George Smith
https://brokercheck.finra.org
I agree with most of the criteria above, but I would take exception with the first. It is common for registered investment advisers to act as registered representatives/brokers. It most generally depends upon the needs of the client and the products required to fulfill the need. Also, one's registrations have a lot to do with the capacity in which a financial professional may act. If one has Series 6 & 63 registrations they may only act as a registered representative. If one has Series 7 & 66 (or 63 & 65) registrations, they may act in both capacities. I have a Series 7 & 66, so I am both.
The FINRA (Financial Industry Regulatory Authority) BrokerCheck allows the general public to ascertain the basic qualifications of financial professionals. The link is provided below. LTC Stephen F. SFC George Smith
https://brokercheck.finra.org
BrokerCheck
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LTC Stephen C.
BTW, SFC Joe S. Davis Jr., MSM, DSL, I researched Michael S. Miles, author of the article and founder of Variplan. He seems like a knowledgable and well qualified individual. LTC Stephen F.
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