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Shopping for a financial planner? The first step is scanning the adviser’s website and clicking on “About Me.” If you read enough adviser bios, you’ll notice similarities. Professionals often start with a summary of their work history and credentials and designations. Then they list media outlets where they’ve appeared. They also tend to share personal tidbits (“I love my kids!”) and summarize what led them to this line of work — and why they love what they do.
It’s hard not to like advisers after reading about them. They curate their life with care and come across as empathetic, enterprising dynamos. Yet savvy consumers read these bios with a critical eye. They know what to look for and what to ignore.
“When reading adviser bios, you should know what matters the most,” said Rui Yao, professor of personal financial planning at the University of Missouri. “Start by prioritizing what you’re looking for in a financial planner. Then gloss over anything that’s not high on your priority list.”
If your top priority is finding a shrewd portfolio manager, for instance, scan the bio to identify the adviser’s investment philosophy and methodology. If you seek expertise on how to navigate student debt or retirement planning, determine to what extent the adviser excels in serving that niche.
It helps to know an adviser’s personal history — their hometown, upbringing, travel experiences — as long as you don’t read too much into it. “People might think someone’s hobbies and background are a signal of some personality trait,” Yao said. “But if you lack a certain hobby or background, that doesn’t mean you lack those traits.”
For example, you might assume that an adviser who was an Eagle Scout demonstrates integrity, a strong work ethic and commitment to duty. But many advisers exhibit these qualities without ever joining a program.
Yao advises against using a financial planner’s interests and background as primary selection criteria, placing a higher value on their career path. When reading their bio, she suggests tracing their job history.
“Look for unexplained gaps,” she said. “It’s one thing if there’s a gap for graduate school or to take care of an ailing parent,” but if you learn that they left the industry for a few years due to disciplinary reasons or regulatory action, that’s a giant red flag.
Some advisers treat their bio as a chance to brag about relatively minor accomplishments. Don’t let these accolades divert your attention from gathering key facts about their experience and expertise.
There are countless “best of” lists published by industry journals and professional associations. If an adviser cites inclusion on “Top 100” lists along with other awards from various third parties, focus on the rest of the bio.
Similarly, look askance if the adviser highlights recognition as a top producer, says Sara Grillo, a New York City-based marketing consultant. Financial services companies and other organizations often hype advisers who attain a high volume of product sales. But that doesn’t make the adviser a good fit for your needs.
“Instead, look for anything in their background that demonstrates selflessness, that shows they’re humble,” Grillo said. Examples include a longtime volunteer emergency medical technician or firefighter.
Many advisers call themselves fiduciaries and emphasize in their bio how they place the client’s interest first. If they earn the CFP (certified financial planner) designation, they must act as a fiduciary and follow a code of ethics.
“See if the adviser is involved in any organization that highlights the fiduciary standard, such as the Institute for the Fiduciary Standard,” Grillo said. She recommends that consumers read the bio to determine if an adviser has, say, published articles or delivered presentations at industry conferences about fiduciary duty.
In terms of professional designations, the financial planning business has an ever-expanding roster of them. Some are more established — and harder to earn — than others.
“There are certain designations that matter like JD [juris doctor], CFP and CFA [chartered financial analyst],” said Sheryl Garrett, founder of Garrett Planning Network, a national network of financial planners. By contrast, some newly introduced or less familiar designation take only several hours to acquire.
In recent years, advisers have increasingly felt comfortable stating their values in their bio. From gender issues to religious affiliation, they may build a brand around what they hold dear.
“Advisers want to be objective with their advice but are biased with certain issues,” Garrett said. “I don’t think they should be afraid to share their values in their bio,” and consumers may want to hire someone who reflects those same values.
Also read: Are you qualified to be a DIY financial adviser? Answer these 3 questions to find out.
