A. Get It In Writing!
Be sure the advice you receive comes from someone licensed to provide that advice.

• Accountants or attorneys who give insurance or investment advice without a securities or insurance license are breaking the law, even though they may mean well.
  • Are they giving a personal opinion, or professional advice?
    Chances are they will not put their advice in writing.
  • If they are not properly licensed, their Errors and Omissions Insurance will not pay any claims you may file against them for the quality of their advice.
  • If they are licensed, are you receiving unbiased advice that is in your best interest, or are they just cashing in at your expense?
    Do Arthur Anderson & Enron come to mind?
• Beware of people that are not attorneys selling Living Trusts: Many are come-ons to sell expensive/overpriced insurance products with horrendous penalties for early termination, to say nothing of a poor Trust that may not meet your needs.

Check any licenses or ‘professional’ designations

• CPA = Certified Public Accountant; licensed to practice accounting by each state. Strict Ethical and Compliance Standards.
  • ESQ = Attorney; licensed to practice law by each state. Strict Code of Ethics and Compliance Standards.
  • RR = Registered Representative; licensed and monitored by the SEC and NASD. Strict Ethical and Compliance standards.
  • RIA = Registered Investment Advisor; licensed and monitored by the SEC and the NASD. Strict Ethical and Compliance standards.
  • ‘Financial Planner’ = No state licensing or educational requirements. Some ‘certifying’ companies sell mail-order courses and tests, and claim ‘codes of ethics’ which are unenforceable by any governmental agencies.
  • ‘Certified’ = Impressive-sounding designation used to make ordinary descriptions sound important. Think of a ‘certified used car’: It is still a used car…..
  • Verify the status of licenses and certifications with the appropriate State and Federal regulatory agencies. You will be able to learn how long your financial advisor has been practicing, and if any violations of rules or laws have been committed.

B. Things your financial advisor cannot control:

• Real Estate – Commercial or residential
• Debt Retirement – Reduce your bills or accelerate your mortgage
• Hobby – Antiques, art or other
• Insurance Products – Life insurance or annuities; trans-generational legacies
• Charitable Giving – CRUT/CRAT or outright gifts; social capital, or mini-foundations
• Long Term Care Insurance – Protects your other assets from health and medical expenses