top of page

Opinion: How to choose a financial professional?

Writer's picture: David H. Kinder, RFC®, ChFC®, CLU®David H. Kinder, RFC®, ChFC®, CLU®

Updated: Jan 18, 2023


LOTS of opinion articles on this topic. The angle of most of these articles is as though you're on a "Tinder for Financial Advisors" and all you're doing is 'swiping right' all the time to try to select "the perfect advisor for you". Most have their biases in their articles, particularly by credential-issuing organizations.




Most industry (and financial press) articles cite a few things: Experience, compensation, credentials, ethical conduct, services offered, conflicts of interest, etc.


Here is my first problem with these checklists: They automatically inspire doubt and fear into the person doing their research that "everyone else is out to get you and rip you off, unless YOU do your due diligence".


My second problem with these checklists: It assumes that every financial professional can be very similar to another! Now, if "we all did the same things", then what makes us each stand out? Having more credentials, years of experience, more industry accolades and memberships, more educational background... none of which really matters.


This would be my ideal question that a financial professional should be asked.


It's good.


Are you ready?


Here it is:


"What is your financial philosophy for your clients?"


That's it.


Now, to that question, you can expect a few responses, and the response indicates the level of specialist that you're working with.


The Generalist: "My job is to help YOU with YOUR plan, dreams, and goals using my knowledge, products, and services to help you accomplish that." Or "We just want your money here."


Not very specific, is it? Besides, what if YOUR own plans are actually not as good as what the advisor COULD be doing for you? Isn't that a lower-level of service?


The Specialist (this is how *I* would respond): "In everything I do, I believe that the American Public is being systematically robbed and lied to by four major forces: banks, financial institutions, Wall Street, and especially, the Internal Revenue Service (IRS). I believe that what they TELL us to do, and what they actually do for themselves behind the scenes is in direct conflict with one another. I want to show the American Homeowner and Taxpayer how wealth works as opposed to math, so that they can understand how these institutions are siphoning their wealth without their even realizing it, and we can make new decisions that recapture and put that money back to work for them immediately."


The specialist has a philosophy, a message, a cause, a belief that they are passionate about! The specialist can also back up everything that they do - why they believe what they believe, outlining the problems, and having a great solution (or multiple solutions) for solving the problems that they see.


The price of being a specialist... is that not everyone is a fit for the work they do. That means that it's up to the specialist to risk walking away from an incompatible relationship. The generalist cannot conceive of walking away from any potential business. But it's also easy to determine if what they do is in-line with what YOU want. If it's not in-line with what you want, no problem! Interview the next one on your list.


In being a specialist, none of the traditional interview questions seem to really matter, do they? Do you care about the specialist's credentials? Years of experience? Industry accolades? Modes of compensation? Not really. (Yes, you will care about ethical conduct and discipline.)


So, if you're interviewing financial professionals to choose one to work with, start with "What is your financial philosophy for your clients?" and see what they say.


46 views
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
  • TikTok
  • Podcast on Spotify!
  • Apple Podcasts
  • iHeart Podcasts!
  • Amazon Podcasts

Phone & Text:

(951) 313-8208

Regulatory Disclosure: Not Legal, Tax, or Securities Investment Advice:

The material discussed on this web site is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice, nor does it represent any specific company or specific products.  David H. Kinder, RFC®, ChFC®, CLU® is not registered nor licensed as a Registered Investment Advisory Firm (RIA), Investment Advisor Representative (IAR), nor as a Registered Representative (RR) with any broker/dealer firm, and is therefore not registered with, or supervised by, the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), or any state securities regulatory office.  As such, David H. Kinder, RFC®, ChFC®, CLU® does not provide investment advice, specifically: buying, selling, holding, risk analysis, or any other analysis of securities, nor the asset allocation of securities portfolios. For specific investment advice on your securities investment portfolio, please contact a licensed and registered investment professional in your state.

David H. Kinder, RFC®, ChFC®, CLU® does offer general investment information for educational purposes and may propose alternative financial strategies that do not contain or include securities. He does also discuss the pros and cons of various kinds of accounts (such as IRS regulated retirement plans) and is considered incidental advice surrounding various strategies and solutions, but does not necessarily constitute advice on the underlying securities.  

 

For tax or legal services and advice, please consult a licensed professional in your state.  Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary and the information should be relied upon only when coordinated with individual professional advice.

David H. Kinder, RFC®, ChFC®, CLU® is a life, accident & health insurance agent in California (CA Insurance License #0E54187) and can easily be licensed to do business in other states.   

David Kinder Insurance and Financial Wealth Solutions is the marketing name for David H. Kinder, RFC®, ChFC®, CLU® and is not affiliated with any other company. 

David Kinder Financial Consulting and Analysis Services offers separate financial analysis services that may be appropriate, offered by engagement agreement, and on a fee-for-service basis that does not offset commissions earned through product placement.  Any recommendations through these services can be implemented with any licensed professional the client chooses, including David Kinder Insurance and Financial Wealth Solutions.

 

Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Guarantees do not apply to the performance of any particular index option on fixed indexed insurance contracts, or on projected dividends on participating insurance contracts.  Planning results are not guaranteed and are subject to individual situations and circumstances. Listing company client access links under the "Client Access" menu does not constitute any endorsement, filing, or approval of this website or its content by such listed companies.  Client access links are provided for client convenience only.

The RFC® designation is conferred and issued by the International Association of Registered Financial Consultants (IARFC) and is used by permission.  
The marks of CLU® and ChFC® are the property of The American College of Financial Services, which reserves sole rights to its use, and is used by permission.  

© David Kinder Insurance and Financial Wealth Solutions; All Rights Reserved

Privacy Policy | Accessibility Policy

bottom of page