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Introduction.

The great thing about finding financial advisors on the internet is that it really is just so simple. However, how do you know which is the best one to pick out of all the online financial advisors you have to choose from? Needless to say you need to make a wise and careful choice on this one to either safeguard your hard earned savings and investments or to get the right advice about personal loans, mortgages or clearing debts.

Types of Financial Advisors.

An individual financial advisor advertising their services should at least be able to prove to you that they are qualified to work as at least one of the following: A Certified Financial Planner (CFP) will not only have passed the appropriate examinations but will also have at least three years experience as a personal financial planner. A Certified Financial Consultant (CFC) is very similar to a CFP, but he or she is more likely to be involved with selling insurances as a financial product. If you need advice concerning your taxes then a Certified Public Accountant (CPA) would be recommended; whereas for help with investments a Chartered Financial Analyst (CFA) will sort out your securities for you. Whilst you might find a website offering financial advisor services ‘free of charge’ the reality is that you will be paying them either some hidden form of commission or a higher flat rate/hourly fee.

Questions to ask.

So, don’t be afraid to ask them outright if they charge a flat rate or hourly fee or if they are paid according to commissions on their work for you. Some advisors might well expect payment according to ‘fee based compensation’; this is just a fancy term for charging flat rate/hourly fees and commission. You might also want to ask them who else they currently represent and look for references/testimonials from exiting clients, to check that they are bona fide. Another thing you can do to protect yourself from any likely financial charlatans is by asking to see their financial advisors ADV form. This is a form that all registered investment advisors must lodge with the SEC or their State authority. Finally, do ask them “if they accept financial fiduciary”; which simply means that they will always act solely in your best interests.

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