What to Look for in a Financial Advisor 

We’ve all seen stories in the news about individuals, both celebrities and everyday people, who have fallen victim to fraudulent financial schemes. This can happen to anyone, regardless of how sharp they may be or how well they understand money. Navigating the financial landscape can feel overwhelming, but with the right help, everything can be put in its right place.

In this video, James guides us through the essential qualities to look for in a financial advisory firm, emphasizing seven key characteristics. First, ensure the firm is a Registered Investment Advisor (RIA), which means it operates under the oversight of state or federal regulators. Next, look for a fiduciary firm—this legal responsibility ensures that they always act in your best interest.

A fair and equitable fee structure is also vital; while a 1% fee is standard for asset management, consider firms with fixed fees or lower variable costs. 

Independence is crucial; choose a firm that isn't tied to a larger entity and can offer unbiased advice. Additionally, a firm should have a practice focus—advisors managing no more than 120 households can provide more personalized service and expertise.

On the advisor level, look for qualifications like a degree in Finance, Economics, or Accounting, as well as certifications such as the Certified Financial Planner designation, which is held by only 20% of the industry. Your relationship with your advisor should feel natural and comfortable, fostering open communication.

Lastly, always check the advisor’s record for any regulatory issues or lawsuits. It’s essential to ensure that every one of these qualities is met to protect yourself—remember, “Buyer Beware.” With the right guidance, navigating your financial journey can be a positive experience!

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Key Timestamps and Topics

• 00:00 - 00:20 Intro
• 00:21 - 00:52  Firm and Advisor comparison
• 00:53 - 10:46 7 Characteristics at firm level
• 10:47 - 15:46 Individual advisor characteristics 
• 15:47 - 16:37 Wrap up 

3 Key Takeaways

➡️ Your advisor should be responsible for 120 households or less. From a capacity standpoint, this enables them to be able to meet every client's needs. 

➡️  1% is the industry standard for what a firm should be charging you. However, you can select a firm with a fixed fee structure or lower variable asset based pricing model. 

➡️ Only 20% of the industry has a Certified Financial Planner (CFP) credential, but this can be a great way to set one advisor apart from another. 

Make the right choice when it comes to your Financial Advisor

Looking for an advisor who understands your situation as a young physician? Get in touch with us and schedule a meeting with a member of the Equitta team to learn how we can support you in your career journey. 

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