A majority of investors find their advisor through a recommendation from friends or family members. But your financial situation may not be identical to that of your family members or your co-workers. You have specific needs that must be met, and you want to find an advisor who has helped others in similar situations.
Any advisor is going to promote his or her skills in their own advertising, on their websites or in printed materials. They are not likely to suggest any deficiencies in their service. So where can you go to find an appropriate advisor if you are starting from ground zero?
The answer is an independent rating service, one in which clients of advisors provide their input into the quality of an advisor’s performance. The key word is “independent’’; the ratings must come from a source which surveys investors without input or persuasion from advisors. Only in that manner will an investor know he or she is receiving the real concerns and satisfaction of an investor.
An independent rating service is also likely to know how to prompt revealing responses from investors. A survey must provide easy-to-understand ratings of individual advisor services, so that multiple advisors can be compared.
The decision to hire a financial advisor is one of the most important decisions an investor can make. That person wants to be educated on the performance of an advisor before agreeing to sign on. An independent rating service would help a relationship get off to a solid start.