Were you ever good at solving the Rubik’s Cube?

Very few people have the skills to master the cube.  Many try, but many fail!  They simply lack a plan or the strategies necessary for victory.  The Rubik’s Cube, which was invented in 1974,  is widely considered to be the world’s best-selling toy.  For those who know how to solve the puzzle, the game is fun and challenging to see how fast you can solve it this time around.

For those of us who lack the plan and strategy necessary for figuring out the Rubik’s mystery, the game is frustrating, perplexing, and not a whole lot of fun…

It’s kind of like how most people approach finances – very few truly understand what skills and steps are necessary for success.  Instead, they get frustrated, ignore their financial problems, and get advice from all the wrong places.  You may be in this category.  To you, financial planning may be your “Rubik’s Cube” – a point of anxiety, stress, and certainly a lack of fun!

So if finances aren’t your cup of tea, you need to get help!  But how do you find someone you can trust in a post-Bernie Madoff  world?  Here are 5 criteria I would use to find a professional that may be able to help you “solve” your financial challenges.
1. Look for a Certified Financial Professional (CFP®). CFP®’s are certified by the Certified Financial Planner Board of Standards Inc. (CFP Board), which can help you identify financial planners who are committed to competent and ethical behavior when providing financial planning. To find a CFP® in your area go here: http://www.cfp.net/search/

2. Look for an independent financial advisor, one who is free from conflicts of interest. Well, when you search for an independent advisor, you have a better chance of finding someone who gets paid for their advice and/or their fee-based asset management, instead of deriving the bulk of their income from trades or product sales. Many of these independent advisors set flat or hourly fees for specific services. Some earn a fee that corresponds to a small percentage of the invested assets they manage for you. If your portfolio does well, they do well.

3. Make sure your advisor is on the up and up. If you want to check out an investment advisory firm, visit www.adviserinfo.sec.gov/IAPD/Content/IapdMain/iapd_SiteMap.aspx. That is the website at which the Securities and Exchange Commission keeps Form ADVs – the forms which reveal disciplinary actions taken against that advisory firm and/or its key employees. You can also make sure a firm is properly registered there. If you want to check up on a specific investment advisor, go to the FINRA BrokerCheck website tool (www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm). Here you can learn about the professional backgrounds of advisors and firms through the Financial Industry Regulatory Authority.
4. Make sure your advisor shares your faith, values, and morals. Two Christian organizations are www.kingdomadvisors.org (you can search for Qualified Kingdom Advisors) and www.nacfc.com. If you desire to invest in moral responsible investments make sure your advisor specializes in this type of investing.
5. Get a referral from someone you trust. The best advisors tend to get referred from professionals, business owners, golf partners, people at your church, or relatives. It signifies real trust in that advisor.

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Posted in Finances by jay No Comments Yet