Do you know your financial advisor? In November 2013, the CFPB (The Consumer Financial Protection Bureau) released a guide called “Know Your Financial Adviser” to help consumers ask the right questions when comparing financial advisors. Since planning for retirement can be challenging, the guide is designed to help seniors and those shopping for an adviser confirm that the person they select is qualified.
Financial planners use many titles. Titles like senior specialist, insurance adviser, benefits coordinator, retirement adviser or mortgage adviser don’t guarantee that someone is a professional or that they are equipped to be an advisor.
When comparing financial advisors, consumers should know how much training went into obtaining the title an advisor uses. They should know whether or not there are State or Federal licensing requirements to have a practice or hold the title and if a training program holds its members to strict ethical standards. For example, is an advisor in a specific field required to complete continued education or is there an accreditation program that ensures the quality of their training.
The CFPB also recommends that seniors research an advisors experience and background in the areas they specialize in because credentials don’t guarantee expertise.
Do your research. Know a financial advisor’s training, background, and quality of service they provide before you ask their advice on how to grow and protect your retirement nest egg.
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