Halloween is here. Snow is on the Ground. Now for some really scary stuff: Is your financial planner a “Financial Scammer?”

In my time as an Estate Planning Attorney, I have seen the good, the bad and the downright ugly in the financial planning industry. All financial planners are not created equally. To complicate matters there is little governmental regulation in this area. Financial Planners are not regulated as such, they are instead regulated by what types of services they provide. For example, a financial planner who provides advice on securities is regulated as a stock broker or an investment adviser, whereas a financial planner who provides life insurance is regulated as an insurance agent. Often the term financial planner may be misleading, and customers are left in the dark as to what qualifications their financial adviser actually has.

It is important that everyone take charge of their own personal finances. No one should care more about your finances than you! A large part of taking charge of your personal finances is hiring the right professionals to help you make your investment decisions. The big question is: How do you know if you are hiring the right person?

You should be prepared to ask a lot of questions when shopping for a planner. A good place to start is to ask your planner-What experience do you have? Ask him/her planner to describe how long they have been in practice and what types of companies they have been associated with. Don’t be afraid to ask about their work experiences and how that experience relates to their planning approach.

Another good question is- What are your qualifications? Ask if they have ever been licensed? Once you get this information don’t be afraid to do a little poking around on the internet. A good website to do a little checking on your financial adviser is www.finra.org. This website allows you to know what licenses your adviser has earned, whether or not they have had disputes with clients and whether or not they have ever been disciplined. A little background information can go a long way in helping to discover if your financial planner is who he or she claims to be.

Beyond your planners experience and qualifications you should also ask about what types of services they offer, and what their approach to financial planning is. You want to make sure that their approach is not too aggressive or too cautious for your personal situation. Another important question to ask is how their services are paid for. Some advisers are paid a salary by the company they work for, others are paid by commissions from the products they sell, and some charge an hourly rate. Your planner should be able to clearly articulate how he or she is paid and should also be willing to put this in writing.

The above are just a few ideas on how to find a good financial planner. The best advice is to set goals, ask questions, get a plan together, and keep your eye on the ball… and on your financial planner

Next week I will publish my private list of local financial planners to avoid-  just kidding!  But if any not so good financial planners are reading this (and you know who you are)-  shape up or ship out.