Beware Wolves Posing as Financial Planners: A Guide to Ascertaining Financial Advisors' Competency and Integrity

By Anne M. Schwab, MBA, CFP

When should you use - or not use - a financial planner?
How do you find a financial planner you can trust?
What should you look for in a financial planner?
How can you evaluate his or her competency?
Are you among the millions asking yourself those questions?

Financial Advisors are NOT created equally. Some are more qualified than others. Some are not qualified at all!
Some may cheat you deliberately. Some may cheat you inadvertently.

Where do you find answers to your questions?

This book sheds light on the following questions:
Is the financial planner really a planner? Or is the planner a salesperson masquerading as a planner?
What is the difference between a financial planner and a financial advisor?
Does the planner have integrity?
What tools are available to research a planner’s background and integrity?
Does compensation influence the planner’s recommendations?
What red flags should alert you?
What questions should you ask before you engage your financial planner?

Your personal finances are as integrated as the organs in your body – if one or more are not healthy, your overall health will suffer. An experienced financial planner is like a financial doctor – diagnosing your financial symptoms and offering prescription to becoming and remaining financially healthy so that you achieve your financial vision.

Learn from an expert with more 25 years’ experience as a Certified Financial Planner.

“THE BOOK” for unbiased information about
financial professional’s credentials, compensation and integrity.

• Language: English
• Publisher: Anne M. Schwab, MBA, CFP
• Release date: Oct 14, 2016
• ISBN: 9781370320912

Anne M. Schwab, MBA, CFP

For almost three decades, Anne Schwab, MBA, CFP(R), has utilized principles from the Certified Financial Planner (R) accreditation program to teach both clients and financial professionals the basic tenets of how money works. Anne, a CFP(R), has held a multitude of financial licenses including securities, insurance and real estate, and was certified for mortgages and long term care insurance. She is passionate about teaching others how to gain financial independence and has developed a unique teaching style to explain the complexities of personal finance, how the "financial organs" are integrated and the prescription for becoming - and remaining - financially healthy.

Book preview

BEWARE WOLVES POSING AS FINACIAL PLANNERS

Your Guide to Ascertaining Advisors’ Integrity and Competence

Anne M. Schwab, MBA, CFP®

Copyright 2016 Anne M. Schwab, MBA, CFP

Published by Anne M Schwab, MBA, CFP

Smashwords Edition

Smashwords Edition License Notes

This e-book is licensed for your personal enjoyment only. This e-book may not be re-sold or given away to other people. If you would like to share this e-book with another person, please purchase an additional copy for each recipient. If you are reading this book and did not purchase it, or it was not purchased for your enjoyment only, then please return to Smashwords.com or your favorite retailer and purchase your own copy. Thank you for respecting the hard work of this author.

Visit the author's website at www.AnneSchwab.net

For other books on money matters visit www.MoneyMattersMadeSimple.net

Disclaimer

The explanations and discussion contained herein are not intended to provide legal or tax advice. Complex subject matters are discussed in this book purely as a basic primer to educate readers. Competent legal, tax and financial planning advice should be sought and researched.

TABLE OF CONTENTS

Introduction

SECTION I. PARSING TITLES

Chapter 1. Beware of Wolves in Financial Planner Clothing

Chapter 2. What are the Three Legs to Consider?

SECTION II. COMPENSATION

Chapter 3. How is the Financial Advisor Compensated?

Chapter 4. Commission Structures Vary …

Chapter 5. What to Expect From a Fee Only Financial Advisor

Chapter 6. Can an Advisor Receive Both Commissions and Fees?

SECTION III. COMPETENCY AND EXPERIENCE

Chapter 7. Is My Financial Advisor Competent?

Chapter 8. What Do All Those Initials Mean? Certifications, Accreditation and Designations

Chapter 9. Is Experience Important?

SECTION IV. WHAT ELSE DO YOU NEED TO KNOW?

Chapter 10. Pay Attention to Red Flags

Chapter 11. Be Confident in Your Decisions

ABOUT THE AUTHOR

CONNECT WITH THE AUTHOR

INTRODUCTION

Is your financial advisor competent?

Does your financial advisor have integrity?

Is your financial advisor motivated by self-interest over your interest?

What information do you need to evaluate whether your advisor is ethical?

Where can you find information about your advisor?

What questions should you ask about your advisor’s background?

Your money is too important to your future financial wellbeing to not have answers to these questions. In fact, in more than 25 years of working with clients, these questions tend to be foremost in clients’ minds. Like most subjects, knowing what questions to ask and where to find answers is the key to learning about the person you are dealing with.

The questions, however, tend to go unasked or unanswered. The reasons are myriad including, but not limited to, you don’t want to offend the advisor, you don’t know what questions to ask or you don’t know where to get this information.

Unfortunately not much literature is available that provides guidance on how to evaluate both the integrity and competence of the financial advisor you are considering working with. With that in mind, the primary objective of this book is to shed light on factors to consider when working with your financial advisors, factors usually shrouded in mystery.

The factors covered in this book include:

- the compensation structures and how it impacts an advisor’s recommendations;

- how an advisor’s licensing and credentials influences their recommendations; and

- how the advisor’s experience and training (or lack thereof) affect their approach to financial planning.

By achieving this primary objective, you will find answers to the above questions and, in doing so, be able to discern whether the advisor is acting in your best interest. From there, you can make informed – and smart – financial decisions.

SECTION I.

PARSING TITLES

Chapter 1.

Beware Wolves in Financial Planner Clothing

In the past it was not unusual for individuals working in the financial services industry to hold themselves out as financial planners. Today, however, the use of