Find a financial adviser who won’t burn your savings

It’s your lifesavings, your investments, your future. And while you can’t control what that money will do, you can certainly control who takes care of it. You don’t want to entrust its care and growth with just anyone. So what do you look for?

The credentials to look for

Many careers require a certain amount of education to be considered qualified. Financial planning/advising is not one of those fields.

Anyone can call himself or herself a financial adviser. So it’s up to you to know what qualifications a financial adviser should have.

Look for the Personal Financial Specialist (PFS) designation, granted by the American Institute of Certified Public Accountants. The nice thing about PFS is that you have to be a Certified Public Accountant (CPA) first, which requires a bachelor’s degree, an additional year of postgraduate study (in most states) and passing a series of qualifying examinations.

The CFP credential, given by the Certified Financial Planner Board of Standards Inc., also requiring a bachelor’s degree and passing the CFP certification examination.

And while you’re checking credentials, check for unlawful or unethical behavior. The Financial Industry Regulatory Authority’s BrokerCheck is a perfect place to start, and you can verify CFP certification on the CFP Board’s site.

Fee only

While not a guarantee, most often fee-only has your best interests in mind. This means nobody gets commissions for investment recommendations or for selling a particular mutual fund, financial product, insurance, etc.

Instead, there’s a standard fee typically based on a percentage of assets under management.

To be sure you know what you’re paying for, get something in writing from your potential adviser disclosing how much compensation they’ll be getting from you.

Advising vs. financial planning

Advice is great, but making it happen is what you’re really looking for. Some advisers offer just that: advice.

Others are comprehensive planners.

“Some people are just investment advisers and only provide you advice on your investments,” says Minneapolis-based certified financial planner Sophia Bera. “Other people do comprehensive financial planning around retirement, insurance, estate planning and tax planning.”

Go with someone whose offerings suit your needs.

Do you like them?

This probably trumps all the other considerations. Probably the most important initial consideration is the adviser’s demeanor and personality. Be sure that you’re comfortable with their demeanor and personality. Be sure they listen to you. Your adviser should ask questions about your individual circumstances and demonstrate that your answers are truly understood.

“Does he or she talk 90 percent of the time?” says Edward Wacks, a CPA and CFP. “If it’s more like 60/40 and he has asked you how he or she can help you, that’s really important.”

Fiduciary standard of care

It’s the highest degree of business responsibility one person can have to another. Put simply, those giving you advice put your interests first. Thanks to the Investment Advisers Act, registered advisers are required by law to meet this standard.

Of course, not all advisers are registered, meaning they don’t have to adhere to the standard. Many of these advisers follow a lesser standard, called the suitability standard, meaning an investment may not be in your best interest, but it’s suitable for someone in your circumstance. So get it in writing that they agree to meet this fiduciary standard.

Now you’ve got all the ingredients for a financial adviser with the care and know-how to take your money to great heights.