University of Wisconsin - Extension

Contact: Mary Lepeska, 262-238-8291, mary.lepeska@ces.uwex.edu

Port Washington, Wis.--When you’re in the market for a financial advisor, don’t be too impressed by people’s titles until you know what they really mean.

Some credentials sound good but may be misleading, according to Patricia Struck, Wisconsin Securities Administrator. "Individuals may call themselves ‘senior specialists’ to create a false level of comfort among seniors. But the training they receive is often nothing more then marketing and selling techniques targeting the elderly."

The terms "financial planner" or "advisor" have no legal definition, and people who use them do not need to be licensed or registered in any way (an exception to this is a licensed broker or investment advisor).

A financial planner or advisor might help you develop a comprehensive plan that includes estate or tax planning, insurance needs and debt management based on your long-term goals. But the planner or advisor typically does not suggest investments to buy.

"The best way to select a financial professional is to meet with them and ask questions. Usually the initial interview is free. Ask about their education, how long they have been in their position and other experience, as well as their credentials and affiliations," says Mary Fran Lepeska, an accredited financial counselor and University of Wisconsin-Extension family living educator in Ozaukee County.

"For example, a CFP (certified financial planner) or PFS (Personal Financial Specialist) is a good credential for someone to have if you need a financial plan. Ask about their investment philosophy, their typical client, what services they offer, how often you will meet and who you will work with," she suggests.

And be sure to ask how the planner will be paid and what they charge. Many financial planners are paid a flat fee for service. One advantage of a fee-only planner is less potential for conflict of interest than with a planner who receives income based on what you buy (paid by commission). Some planners may get a fee plus commissions.

Check references, licenses and registrations. In Wisconsin, contact the Department of Financial Institutions, Division of Securities (1-800-472-4325) to check on a firm or salesperson. Disciplinary information on firms and salespersons is also available from the Financial Industry Regulatory Authority by calling 1-800-289-9999.

"To find financial professionals in your area, ask friends and family members for references," says Lepeska.

For fee-only planners, contact the National Association of Personal Financial Advisors 1-888-333-6659; for certified financial planners, call 1-888-237-6275 and for a listing of up to five professionals in your area, call 1-800-392-6900 (Society of Financial Service Professionals). Interview at least two people before deciding who best meets your needs.

"Understand everything you are buying and continue to communicate with your financial professionals, especially if changes occur. Don’t be afraid to switch to someone new if you are not satisfied with your communications or the results," says Lepeska.

For more information on choosing a financial planner or advisor, contact your local county UW-Extension office.