If you’ve gone through the process to decide you’d like to work with a financial advisor, you might now find yourself with another tough decision. Just how do you navigate the search for a financial advisor in Maryland who fits your needs? There are a lot of factors to take into consideration, and we will help break them down for you.

Your Goals

Before you can decide what qualities you need in a financial planner, you must first examine your goals and priorities. Doing so will help you find an advisor whose expertise aligns with your needs. Consider your comfort with investing and your preferred investment style.

Sit down and gather your data, such as income/pay stubs, tax returns, estate planning documents, investments, and insurance policies. Then identify any specific problems or goals you are seeking help for. Examples could be planning for retirement, purchasing a vacation home, managing investments, or minimizing taxes. Write down any additional goals that are important to you even if they aren’t immediate concerns, such as legacy planning.

Think about what compensation model you’re comfortable with. There are a variety of fee models out there. Some advisors are paid based on commissions, some only for advice, and some have a hybrid approach and would be considered fee based. Are you looking for long-term portfolio management, hourly advice, a one-time planning fee, or something different?

Education

A vital step in your search process is educating yourself about the industry. The fiduciary and suitability standards are of particular note.

A fiduciary duty is the highest standard of care an advisor can be held to because they have a legal and ethical duty to place your best interests above their own. If they are registered with the U.S. Securities and Exchange Commission (SEC), then they are held to the fiduciary standard.

The suitability standard is less strict and simply means the professional’s recommendation must make sense for your financial situation. There tend to be greater conflicts of interest with suitability vs. fiduciary, and the advisor can recommend products that are still considered suitable but that give him or her a bigger payout.

Consider, also, how advisors are compensated. You may encounter several compensation models, such as billing by assets under management, hourly fees, commissions, or even monthly subscription fees.

Some advisors will display their fee models on their websites, but a search on the SEC website can be helpful in verifying fees, credentials, educational backgrounds, investment methods, and regulatory actions. If you can’t find the information before your meeting, then have compensation as a must-ask question on your list.

Where to Search

There are many resources you can utilize to find an advisor, such as Google and word-of-mouth. Perhaps less utilized are the professional association search sites. Fee-Only Network’s database and NAPFA Find an Advisor are great options if you’ve decided that an advisor who does not receive commission compensation is the correct fit for you. Other helpful options include FPA PlannerSearch and the CFP® professional search.

Consider if location is important to you or if you’re happy to have a virtual relationship. If you’re looking for a financial advisor in Maryland, for example, then be sure to narrow your search in the above databases so that you aren’t met with advisors outside of a comfortable travel distance. Financial firms in northern Virginia or financial advisors in Washington, D.C. may also be a good fit.

Before you start contacting advisors you’ve added to your “maybe” list, be sure to check if they have any disciplinary history. The SEC website will have information on disciplinary records if the advisor is SEC registered.

If they are registered with FINRA, you can check the BrokerCheck database to see complaints. CFP Board has a search to verify a CERTIFIED FINANCIAL PLANNER™ (CFP®) professional’s certification, and the results will also display information on whether the person has been disciplined by the board.

Client Qualities

You’ll next want to make sure the advisors on your list manage individual accounts and don’t work exclusively with small companies, in the trust space, or some other area that would disqualify you as a client.

Since you’ve already gathered all of your data, you should have an idea of how much you have accumulated in assets. Many advisors have fee minimums and will direct you elsewhere if you don’t meet their client requirements. These should be found on the website, but you can reach out to the advisor or team directly if you cannot find the information.

Experience and Expertise

Now that you’ve narrowed down your list some, look into each advisor’s areas of expertise to ensure they align with your needs and goals. Some advisors offer only investment management, so check that comprehensive financial planning is a service offering if you want more than portfolio management.

It is important that the advisor you choose has experience with situations similar to yours. Be sure to verify their years of experience, and don’t be shy to ask for references from current clients.

You can oftentimes get some insight into their areas of expertise from their professional designations. Common designations you may come across are CFP® professional, Chartered Financial Analyst® (CFA), or Enrolled Agent (EA). If you see any you aren’t familiar with, FINRA has a comprehensive list that can give you information on the issuing organization and education requirements.

Taking a good look through the advisor’s website or at their Fee-Only Network profile (if they have one) can clarify specialties as well as location. For example, our Bethesda financial planning firm includes not only office locations but also services, clients we work with, fees, and more.

Familiarize yourself with the financial planner’s advisory service offerings, such as wealth management, tax planning, retirement planning, education planning, and investment advice and make sure they are a good fit for your needs.

Interviewing Advisors

By now, you have done a lot of legwork and have likely taken several advisors out of the running. In preparation for interviewing the remaining candidates, make a list of important questions such as:

Will I be given clear written instructions to execute important aspects of the plan?
How do I know if I’m on track?
How do inflation and return assumptions impact my plan?
How do I access my money? How do I add to my accounts?
Do you have a network of other professionals such as attorneys and accountants in case I need a referral?
Will I receive summaries of transactions that take place in my account?
What is your investment style? How will you determine my asset allocation?
How often will we meet and review my plan?

When it comes time to interview advisors, add any questions to your list that you haven’t found the answer to during your research.

If you need further help in coming up with questions to ask, you can contact the Securities Division of the Maryland Attorney General Office and ask them for a copy of their Financial Adviser Interview Checklist. They are another resource for determining disciplinary history and advisor status as well.

The search may seem daunting, but putting in the time up-front will give you a better chance at forming a long-term relationship with a financial professional you’ll be happy with.

Discuss your situation with a fee-only financial advisor.

The commentary on this website reflects the personal opinions, viewpoints and analyses of the Divergent Planning, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Divergent Planning, LLC or performance returns of any Divergent Planning, LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Divergent Planning, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

Divergent Planning, LLC provides links for your convenience to websites produced by other providers or industry related material. Accessing websites through links directs you away from our website. Divergent Planning, LLC is not responsible for errors or omissions in the material on third party websites, and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.

Divergent Planning, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Divergent Planning, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Divergent Planning, LLC unless a client service agreement is in place.

General Notice to Users: While we appreciate your comments and feedback, please be aware that any form of testimony from current or past clients about their experience with our firm on our website or social media platforms is strictly forbidden under current securities laws.