Should I Trust You as a Reference?

Well-meaning friends and family making suggestions!

Friends and family like to be helpful, and it's great when they refer you to a financial advisor. In a similar vein, an advisor you're considering may also give you names of client references. But if you ask the references why they recommend a person, do they really know what makes a good advisor - beyond being "nice" or "easy to talk to" or that he or or she "made me some money"? Not necessarily, as most people don't understand the structure of the financial industry.

As I discussed in my article for CNBC.com's financial advisor hub, there are certain questions you can ask a reference to get at the specific qualifications and processes you should be considering about an advisor. Questions to ask include - Is the advisor a fiduciary? How do they get paid? Are they willing to work as part of a team with attorneys, accountants and others? For more questions and background info, see the article here.

Advisors - as a long-time industry writer and an advising client, I can help you with knowledgeable content for clients and prospects. Contact me here.