{"id":9037,"date":"2018-04-02T09:24:58","date_gmt":"2018-04-02T16:24:58","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=9037"},"modified":"2019-07-15T03:07:34","modified_gmt":"2019-07-15T07:07:34","slug":"financial-advisor-research-5-places-you-should-always-look","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/","title":{"rendered":"Financial Advisor Research: 5 Places You Should Always Look"},"content":{"rendered":"<p>Financial advisor research may be one of the most important things you do.<\/p>\n<p>Think about it: Before buying a car, people typically research makes, models and even dealerships before making a purchase. And that\u2019s for a car! The financial advisor you choose effects whether you get to live the retirement you plan for, how you live that phase of life and what, if anything, you are able to leave behind.<\/p>\n<p>With that said, your objectivity is very important in the researching process. Too many investors rely on their intuition when they select financial advisors. What they fail to realize is intuition\/emotions\/feelings are easy to manipulate by advisors with superior sales skills. An intuitive selection process can cause you to select the advisor with the best personality and sales skills and not their experience or expertise.<\/p>\n<p>It is very risky to select advisors based on feelings. Your selection process should be driven by facts and objectivity.<\/p>\n<p>So, where do you go to research financial advisors?<\/p>\n<p>The Internet gives you access to vast amounts of information about financial advisors, but you do not want to spend hours seeking and reviewing information. You need an efficient way to research an advisor in 30 minutes or less.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d30040b817d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d30040b817d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#5_Places_You_Should_Look_While_Searching_Financial_Advisor\" title=\"5 Places You Should Look While Searching Financial Advisor\">5 Places You Should Look While Searching Financial Advisor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#1_Regulatory_Websites\" title=\"1.\u00a0Regulatory Websites\">1.\u00a0Regulatory Websites<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#FINRA\" title=\"FINRA\">FINRA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#BrokerCheck\" title=\"BrokerCheck\">BrokerCheck<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#SEC\" title=\"SEC\">SEC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#State_Securities_Commissioner\" title=\"State Securities Commissioner\">State Securities Commissioner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#State_Insurance_Commissioner\" title=\"State Insurance Commissioner\">State Insurance Commissioner<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#2_Financial_Advisor_Websites\" title=\"2. Financial Advisor Websites\">2. Financial Advisor Websites<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#3_Better_Business_Bureau\" title=\"3. Better Business Bureau\">3. Better Business Bureau<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#4_Google\" title=\"4. Google\">4. Google<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#5_Social_Media\" title=\"5. Social Media\">5. Social Media<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/#The_Invisible_Advisor\" title=\"The Invisible Advisor\">The Invisible Advisor<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"5_Places_You_Should_Look_While_Searching_Financial_Advisor\"><\/span>5 Places You Should Look While Searching Financial Advisor<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Regulatory websites<\/li>\n<li>Financial advisor websites<\/li>\n<li>The Better Business Bureau (BBB)<\/li>\n<li>Google<\/li>\n<li>Social Media<\/li>\n<\/ol>\n<p>Let\u2019s break these down:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_Regulatory_Websites\"><\/span>1.\u00a0Regulatory Websites<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Never select a financial advisor without reviewing his or her compliance record. And if you find complaints on that record, you may want to move on. Why interview advisors with disclosures if you can interview advisors with clean records?<\/p>\n<p>You can read the description of the complaint and its resolution. Some people believe 80 percent of all complaints are frivolous; investors often file complaints when they lose money in the stock market. You can separate the frivolous from the serious by reviewing the resolution. In most cases, frivolous complaints are denied in arbitrations.<\/p>\n<p>Regulatory websites also provide information on advisors\u2019 work experience, the type of registrations they hold and other vital information.<\/p>\n<p>Here are the top stops:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FINRA\"><\/span><a href=\"http:\/\/www.finra.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">FINRA<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that is financed by Wall Street. Because of this, FINRA is not as investor-friendly as it should be, but it is your best source for viewing the compliance records of firms (3,800) and professionals (634,000) who sell investment products for commission.<\/p>\n<p>FINRA was authorized by Congress to protect America\u2019s investors by making sure the broker-dealer industry operates fairly and honestly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"BrokerCheck\"><\/span><a href=\"https:\/\/brokercheck.finra.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">BrokerCheck<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>BrokerCheck is a FINRA service that enables you to review the compliance records of broker-dealer firms and registered representatives. It maintains records for firms and professionals who hold active securities licenses. It maintains records for two years for firms and professionals who drop their licenses and it maintains records in perpetuity for firms and professionals who have complaints on their records.<\/p>\n<p>You will also find additional information in BrokerCheck that you can use to validate some of the advisor\u2019s claims. For example, years of experience, employment history and licensing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SEC\"><\/span><a href=\"https:\/\/www.sec.gov\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">SEC<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Whereas FINRA regulates broker-dealers, the Securities and Exchange Commission (SEC) is a government agency that regulates and oversees Registered Investment Advisors (RIAs) with more than $100 million in assets under management.<\/p>\n<p>When financial advisory firms register with the SEC, they must complete a Form ADV that is as close as you will get to full disclosure for their businesses. Disclosures on Form ADV include ownership, business practices, disciplinary history, financial information, investment processes and other pertinent information that must be updated annually.<\/p>\n<p>For investors, ADVs can be a treasure trove of information that can be used to learn what they need to know about firms and their advisors. The amount of information can be overwhelming; however, if you know what to look for, the form is a very useful research tool.<\/p>\n<p>Form ADV has two parts: Part 1 provides the essential data about a firm, including the number of clients, owners and advisors, state registrations, disciplinary information, etc. Part 2 is more of a narrative that describes the education and backgrounds of advisors, the types of services offered, fees, compensation arrangements and their methods for selecting investments for clients.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"State_Securities_Commissioner\"><\/span><strong>State Securities Commissioner <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Smaller RIAs with assets under $100 million are required to register with their state securities commissioners. You can find out how to contact your state\u2019s commissioner by going to the North American Securities Administrators Association (<a href=\"http:\/\/www.nasaa.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">NASAA<\/a>) website. Click on the \u201cContact Your Regulator\u201d navigation tab to find a list of state regulators with their contact information or you can click on the name of your state to be taken to the website of the regulatory agency.<\/p>\n<p>A high percentage of the advisor information that is maintained by states is not available online. Contact your state\u2019s securities commissioner to find out how to access advisor information.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"State_Insurance_Commissioner\"><\/span><strong>State Insurance Commissioner<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Most financial advisors provide planning and investment services. A significant percentage of these professionals also have licenses that permit them to sell several types of insurance products, such as annuities, life, disability, health and long-term care insurance. A very small percentage are licensed to sell casualty insurance products.<\/p>\n<p>The state that issued the license will have a record of the advisor\u2019s licensing and compliance record. This data will vary by state. Some of the state websites include an agent search application, enabling you to search by name. Go to your state\u2019s insurance department or commission to obtain the information you are seeking. You can also go to the National Association of Insurance Commissioners (<a href=\"http:\/\/www.naic.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">NAIC<\/a>) website and use their directory to find your state\u2019s insurance commissioner.<\/p>\n<p>Again, a high percentage of the advisor information that is maintained by states is not available online. Contact your state\u2019s insurance commissioner to find out how to access advisor information.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Financial_Advisor_Websites\"><\/span>2. Financial Advisor Websites<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Every financial advisor in America has a website \u2013 or they should. It may be their own website or they may have a biographical page on an employer\u2019s website. Some financial advisors, in particular more junior advisors, may not be represented on their firms\u2019 websites.<\/p>\n<p>In many respects, financial advisor websites act like online sales brochures (i.e., Who We Are, What We do, Who We Serve and Contact Us), which means most of the content on the site is more or less promotional. But you can find out what services an advisor specializes in and usually how long they have been practicing. You will also more than likely find their credentials, which you can later <a href=\"http:\/\/blog.paladinregistry.com\/investing-2\/never-assume-when-trying-to-find-a-financial-advisor\/\" target=\"_blank\" rel=\"noopener noreferrer\">verify<\/a>.<\/p>\n<p>High-quality advisors use their websites to practice transparency. They can afford to be transparent because they have nothing to hide. You will begin to recognize who is transparent and who is not after visiting a few advisor websites.<\/p>\n<p>Be sure to view the information at the bottom of the home page. It will tell you who the advisor or firm is affiliated with. For example, you might see, \u201cSecurities offered through XYZ Financial, Member FINRA\/SIPC.\u201d This tells you the advisory firm is licensed with a broker-dealer, which also means they sell investment products for commissions. If the advisor is an RIA, you will typically see: \u201cXYZ Financial, a Registered Investment Advisor.\u201d Many RIAs include a link to their Form ADV.<\/p>\n<p>If you want to obtain additional information about an advisor or firm, make you sure you read their Terms of Service and Privacy Policy documents.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Better_Business_Bureau\"><\/span>3. Better Business Bureau<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Better Business Bureau (<a href=\"http:\/\/www.bbb.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">BBB<\/a>) is one of the most recognized brands in America. It has provided services to consumers for more than 100 years. It has always been a go-to resource for researching the quality of businesses and professionals and it should be a part of your financial advisor research process.<\/p>\n<p>Utilizing information obtained from public data sources as well as the businesses themselves, BBB rates businesses based on how they are to interact with their customers, assigning a quality rating from A+ (highest) to F (lowest).<\/p>\n<p>The rating elements include a business\u2019s complaint history, response record, time in business, transparency of business practices, licensing and government actions and truth in advertising. Although BBB ratings are not a guarantee of a business\u2019s reliability or performance, the information it gathers to develop business profiles can be helpful in evaluating the quality of financial firms and professionals.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Google\"><\/span>4. Google<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With Google, you should look for any information that validates or invalidates the claims of financial advisors or information that would cause you to include or exclude an advisor from the next step of your selection process.<\/p>\n<p>This may be information that appears in a regulatory database. For example, you might find a negative article written about a financial advisor in your local newspaper. Conversely, you might find that the advisor has several great reviews. The information can be positive or negative.<\/p>\n<p>Your Internet research should be conducted on the advisor and the advisor\u2019s firm. If the firm is privately held, you may want to research the names of the owners of the firm.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Social_Media\"><\/span>5. Social Media<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Please note: We do not recommend using personal social media accounts for any type of profiling based on race, religion, age or political affiliations. But you can use business social media accounts to learn more about advisors or firms before you select them.<\/p>\n<p>Not all financial advisors use social media for their business. In fact, those who work for broker-dealers or securities firms are limited by compliance rules in how they can use social sites. But you can actually learn a lot about financial advisors by visiting their social media pages. Facebook, LinkedIn, Instagram and Twitter are among the more widely used social media platforms and they can provide information about the advisor\u2019s knowledge and credibility. The number of social media sites continues to grow, but we recommend you concentrate on the more popular sites, which are more likely to be used by financial advisors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Invisible_Advisor\"><\/span><strong>The Invisible Advisor <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If your financial advisor research does not turn up any information about a particular advisor, this should be grounds for automatic exclusion. You do not have to know why there is no information. All you have to know is the lack of information creates a hidden risk and you can avoid this risk by excluding the advisors from your selection process.<\/p>\n<p><a href=\"http:\/\/blog.paladinregistry.com\/investing-2\/personal-finance-planning-doesnt-have-to-be-scary-just-use-the-internet\/\" target=\"_blank\" rel=\"noopener noreferrer\">In extreme cases<\/a>, criminals and others pose as financial advisors to gain control of your assets. They may even steal the identity of legitimate advisors. This is one of the reasons why you should cross-check the information you find on multiple websites and the Internet in order to <a href=\"https:\/\/www.paladinregistry.com\/landing\/find-financial-advisors\">find a trusted financial advisor<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial advisor research may be one of the most important things you do. Think about it: Before buying a car, people typically research makes, models and even dealerships before making a purchase. And that\u2019s for a car! The financial advisor you choose effects whether you get to live the retirement you plan for, how you live that phase of life and what, if anything, you are able to leave behind.<\/p>\n","protected":false},"author":2,"featured_media":9038,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[395],"tags":[],"class_list":["post-9037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Best Places You Should Always Look While Finding A Financial Advisor<\/title>\n<meta name=\"description\" content=\"Regulatory Websites, FINRA, Brokercheck, SEC, Better Business Bureau, Social Media portals are the top 5 ways to find a trusted financial advisor.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Best Places You Should Always Look While Finding A Financial Advisor\" \/>\n<meta property=\"og:description\" content=\"Regulatory Websites, FINRA, Brokercheck, SEC, Better Business Bureau, Social Media portals are the top 5 ways to find a trusted financial advisor.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.paladinregistry.com\/blog\/investing\/financial-advisor-research-5-places-you-should-always-look\/\" \/>\n<meta property=\"og:site_name\" content=\"Paladin Registry Blog\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/PaladinRegistry\" \/>\n<meta property=\"article:published_time\" 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