BUSINESS

Asking the 5 W's key to finding a financial adviser

Practice Pointers. By Amy S. Born, AMNews contributor. Oct. 17, 2005.

Answers to questions about the business side of your practice

Question: I am nearing retirement and am in the process of selling my practice to my partner. The sale will result in a substantial lump-sum payment.

I have been handling my own investments in the past. However, I believe that it is time to hire a professional to oversee my investment portfolio. Do you have any tips on hiring an investment adviser?

Answer: This is an important question to ask because you will likely be developing a long-term professional relationship with this person.

An ideal place to start is to ask your friends and family for referrals. Also, organizations such as the Certified Financial Planner Board of Standards (www.cfp.net) and the Investment Management Consultants Assn. (www.investmenthelp.org) have resources you can tap into.

Once you obtain two or three names, contact them to arrange a meeting or phone interview. There are some important questions to ask during the interview process. As a baseline, you should use the "5 W's": Who, What, Where, When and Why.

Let's begin with "Who." That is, who are they and with whom do they work?

Ask the adviser about his or her background and credentials. Ask questions such as: How long have you been in this business? What are your qualifications and/or certifications? Also, what is your typical client profile?

It is important to know that the professional works with clients similar to you in terms of income level and/or net worth.

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