“Don’t Take Advice From Broke People” TM

About 39 percent of investors decide not to use a financial advisor – not a smart money move. The financial industry is not just complicated; it can be extremely confusing and has many layers.

Don’t panic. You don’t have to be an expert in the many nuances of the financial world, but you do stand a better chance of achieving your goals with the right financial professional helping guide you. Finding that right professional means doing some homework.

Start by checking credentials. Federal or state securities laws require brokers, investment advisors and financial firms to be licensed or registered. Investment advisors who manage $25 million or more in client assets much register with the U.S. Securities and Exchange Commission (SEC). If they manage less than $25 million, they must register with the state securities agency in the state where they do business.

This information is public, usually only a phone call or Internet search away, but it’s up to you to find it and use it to protect your investment dollars.

To find out whether a financial advisor is properly registered, ask to see the registration form, called the “Form ADV.” With a little research of registration forms and federal and state sites, an investor can learn about the advisor’s services, fees and investment strategies. State and federal Web sites also provide information about the advisor’s business and whether they’ve had problems with regulators or clients. Always ask for and carefully read the ADV before hiring an investment advisor. You should also check SEC and state resources for other information that may influence your decision.