WHAT TO ASK WHEN SELECTING FINANCIAL ADVISER

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, February 14, 1993                   TAG: 9302120324
SECTION: INSURANCE                    PAGE: INS-2   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium
WHAT TO ASK WHEN SELECTING FINANCIAL ADVISER
When seeking financial guidance, shop around and talk to more than one adviser. Select a planning service that is compatible with your immediate financial needs as well as your projected growth. A financial consultant should provide you with a feeling of trust that your personal finances will be handled in a professional, confidential manner.
Use the following questions as a guide when selecting a financial adviser. While there are no single, correct answers, your adviser's responses may help you decide a course of action.
Q: What financial planning services do you provide?
A: Many financial advisers are specialists in a particular area, such as insurance or retirement planning. Determine if the adviser provides a broad enough range of services to meet your needs.
Q: Will you have direct access to my money?
A: Direct access to a client's money creates a greater liability for the financial adviser. Get details regarding what bonding and insurance the financial adviser carries to cover that liability.
Q: Do you also sell financial products such as insurance and mutual funds in addition to the planning services?
A: Product sales, in addition to planning services, can create a potential conflict of interest. Avoid financial advisers who promote only their own products as the solution to all financial problems.
Q: If you sell me a financial product that is recommended in the plan, how will you be compensated?
A: It's important that all compensation factors - fees, commissions, or a combination of fee/commission - be fully and clearly disclosed to you before entering into an agreement with a financial consultant.
Q: How will you be compensated for developing my financial plan and for follow-up services?
A: Disclosure of fees for planning and follow-up should be full, detailed and clear before entering an agreement with a financial adviser.
Q: After my financial plan has been developed, delivered and implemented, what follow-up services do you offer?
A: The financial consultant should continue to work with you to monitor, review and revise your plan as necessary. Depending on your needs, follow-ups are required regularly, at least on an annual basis or whenever your financial situation changes.
Q: What licenses, certifications and registrations do you have? A: Depending on their areas of specialization, financial and advisers are regulated by federal and state laws.
Q: Do you have a professional designation and membership in a financial services organization?
A: Professional designations such as Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) show a strong commitment to competent, ethical client service and continuing education.
About the American Society of CLU and ChFC:
With 35,000 members, the American Society of CLU and ChFC is a national association of insurance and financial services professionals. Headquartered in Bryn Mawr, Pa., the American Society has 226 chapters nationwide. Members have earned or are working toward the designations, Chartered Life Underwriter (CLU) or Chartered Financial Consultant (ChFC), from The American College, Bryn Mawr, the insurance and financial services industry's oldest and largest fully accredited institution of higher learning.

by Archana Subramaniam by CNB