Too many people only use only one P when evaluating a financial advisor – Performance, more accurately past performance. That’s why most of them have disclaimers that past performance may not accurately reflect future results. As I’m in the throes of selecting a financial advisor (using WiserAdvisor), I’ve thought of three more P’s that I should be using as well.
Don’t get me wrong, I will ask about an advisor’s track record, but that is just one factor in making an accurate evaluation of a financial planner. It may be that several non-performance factors are the key indicators of an investment advisor’s success and potential.
(As I go through the process of using WiserAdvisor to help me select a financial planner, I’ll keep you posted.)
My 3 P’s of evaluating a financial advisor
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Philosophy
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Practices
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People
Philosophy
While different Investment styles come and go, an advisor’s consistency of philosophy and focus is an important component I’ll use to make my personal assessment. I’m looking for a financial advisor with a long term commitment to a winning investment philosophy, not someone who chases the latest and greatest investment fad.
