How to Pick a Financial Advisor

Most people don’t have a “true” financial advisor. The truth is its really hard to know who a financial advisor really is. In fact, insurance agents, stock brokers/registered representatives, bankers, accountants, and personal financial coaches are all people who often hold themselves out to be financial advisors when in fact they really aren’t.

They will use terms like “strategists, financial specialists, and financial consultants, etc.” While those terms are endearing, they are a sign the individual may not be holding all of the appropriate licensing. In fact it would be illegal for any individual to write financial advisor on their business card if they were not properly registered to do so.

MAKE NO MISTAKE – a true financial advisor must be registered with their state or the SEC as precisely that. This registration usually involves holding a series 6.6 or 6.5 license.

The best way to to check the registration on an individual you are considering is to become your next financial or investment advisor is to visit:

Investment Adviser IARD Search

Check the ADVII

All registered investment advisors must be able to provide you with an ADVII document to offer personal financial advice to you for compensation. You can view the ADVII document of Eddie Patel, Inc. by clicking here.

If the individual you are soliciting can not provide you with an ADVII that doesn’t mean they can’t help just means they don’t have a legal mandate to do what’s in your best interest.

As an investment adviser representative – I have a legally mandated fiduciary obligation to serve you in your best interest. :)

Some other good tips

Here are some other really good tips on how to pick a financial advisor:

  •  See if your advisor is a member of an independent background checking organization such as advisor check
  •  Ask if they are a member of the National Ethics Bureau (not a requirement but NEB does the background check for you)
  • Ask about the advisors compensation structure. Ideally you should prefer a fee-based or fee-only structure because fees that are paid by you, keep the advisor loyal to you. Fees or commissions paid by third parties, may present the advisor with a conflict of interest.

Where can I find a good financial advisor?

Well if you are reading this blog post, I would hate to miss the opportunity to inject myself into the conversation. However, if you arent choosing me or my firm take a look in these places...

If you aren’t sure whether or not the individual you are working with, is working on your behalf, give me a call and I will help you sort it out. I don’t charge anything for this and its well worth the input.


Eddie Patel