5 Ways to Know if a Financial Advisor Puts Your Needs First

CUSTOMIZATION

Your needs are unique—and your investment strategy

should be too. Make sure your advisor takes the time to

understand your personal goals in order to recommend a

customized plan that aligns with your risk tolerance. For

example, your advisor may select investments that earn

less in your portfolio yet make you feel more comfortable.

COMPENSATION

Consider an advisor who charges a fee for services rather

than commission-only from sales of stocks, insurance or

other types of investments. This can be an hourly fee, or

a percentage of your portfolio. But it helps ensure that he

or she is working to grow your investments, not profiting

primarily from sales.

EXPERIENCE

While it’s a good rule of thumb to look for at least three

years of experience working as a financial advisor, be sure

to ask what type of investing with which your advisor

is most experienced. If they answer “active trading in

equities” and you’re looking for a conservative financial

plan (or are about to retire), it may not be a good match.

 

INVESTMENT APPROACH

Every investor is unique. So make sure your advisor’s

investing philosophy isn’t too conservative or aggressive

for your investing style. And be sure to check their

assumptions when projecting rates of return—if they

seem particularly rosy (e.g., 15% with an inflation rate of

2%) it’s not very realistic—it might not be very realistic

and/or attainable for the long-term.

ACCESSIBILITY

Regardless of how much you have to invest, your

Financial Advisor should be working with your best

interests in mind. And even if you prefer to meet only

quarterly, or even yearly to discuss your portfolio, if

you have questions your Advisor should always be

available to give you answers. If they don’t return your

calls, it may be time for a change.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

To determine which course of action may be appropriate for you, consult your financial advisor.

 This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This material has been prepared by LPL Financial. A registered investment advisor, member FINRA/SIPC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity.

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Jason A. Jennings, CFP®

Managing Partner

6 W. 2nd St.

Frederick, MD 21701

240.215.4709 office

240.439.4475 fax

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