I saved these notes from Larry Swedroe in doing due dilligence when looking for financial advisor. May or may not be of interest to anyone. ev
One should
just follow the suggestions I offer in performing due diligence
IMO the way to find a good advisor is to make sure the
firm can make these commitments to you:
The best interest of the client
Our guiding principle is that we will provide investment
and wealth management advisory services that are in the client’s best interest.
Fiduciary standard
We provide a fiduciary standard of care—the highest legal
duty that we can have with a client.
Fee-only
We are a fee-only advisor—avoiding the conflicts and lack
of objectivity that commissioned-based compensation can create.
Products: They’re not-for-sale here
We are client-centric—we don’t sell any products, only
advice.
Full disclosure
All potential conflicts are fully disclosed.
Use scientific research
Our advice is based on the latest scientific research, not
on our opinions.
Practice what you preach
We invest our personal assets, including our
profit-sharing plan, based on the same set of investment principles and in the
same or comparable securities that we recommend to our clients.
Advisory team for each client
Each client is assigned a team of professionals. Our
comprehensive wealth management services are provided by individuals who have
the CFP, PFS, or other comparable designation.
Attentive, individualized service
We provide a high level of personal attention. Developing
strong personal relationships is central to our ability to provide appropriate
advice and service for each client.
Customized, integrated planning
We develop investment and wealth management plans that
relate to the whole person—that are integrated into to each individual’s unique
strategy and personal situation.
Strategic advice for long-term success
Our advice is goal-oriented. We evaluate each recommendation,
not in isolation, but in terms of its impact on the likelihood of success of
the overall plan.
Also one can check the ADV to learn the backgrounds and
qualifications of the advisors and also see if there are complaints against the
firm. Then references can be checked as well (clients and more importantly
other professionals in the area--CPAs, attorney's, etc)
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