There are great money planners out there. You just have to know where to look.
1. Ask the right questions. What services does she offer and how much will they cost? How would she invest your money? Will she respect your capacity for risk? Who is her auditor? Does she handle other big clients?
2. Know where your money is. It is important that an independent institution hold your money. You shouldn’t be writing checks to your adviser but to a third-party company, the custodial firm. And you must open—and read—your quarterly statements. And you must be sure they are coming to you directly from the custodial firm. To double check, sign up for online statements then access them through the firm’s official Web site.
3. Diversify. Not just with a range of investments, but with several money managers. You’ll have the others for backup should one have a problem. And you’ll also get smarter: You can use what you learn from one to talk to the others.
4. Remember that just because someone is fun at a dinner party doesn’t mean she’s a great adviser. Focus on more relevant criteria when you pick an adviser.
5. Insist on face time. You should always meet the adviser in person when you’re interviewing initially and you should continue to ask for face-to-face meetings. There’s a lot you can learn from body language.
6. Never invest with someone who can’t—or won’t—explain what is going on with your money. If an explanation isn’t forthcoming, there are plenty of other advisers to choose from.
