Some folks think that “what you don’t know can’t hurt you” ….but in all honesty, it is what you don’t know you don’t know that will. And events of the last two years or so have, if nothing else, taught us that there is a lot we don’t know: and not just about the Market, but about ourselves and how we react to unexpected and unforeseen events.

With the relentless coverage of the economy and stock market, you are surely frustrated and emotional about your investments. You want answers and you want to know what to do with your money. I don’t blame you. But be careful. Contradictable to what the latest salesman told you, your situation is unique and the answers for you may not be the same for your neighbor. Hot opportunities, in fact, may be the last thing you need to pursue.

So how do find someone to help you discover the answers best for your unique situation and not best for their own paycheck? Here are some tidbits to look for, questions to ask and requests to make when you are visiting the idea of making a change.

1. Is the advisor interested in you? Are they asking questions about your present situation, future and goals, family, and feelings about the current economic conditions and investing? Are the ideas he/she is providing relative to your life story?
2. How does the advisor make money? Taking an advisor’s source of income under consideration may help you decide whether or not to follow their recommendations without acquiring a second opinion. There are essentially 3 types of income for an advisor:
   1. The first is a planning fee. This can either be based on an hourly rate, flat rate, or a percentage of your assets and/or income. This fee is charged for the amount of work done to develop financial planning recommendations.
   2. The second is a commission. Commissions are usually paid by a third party from products sold to you. This is usually an upfront percentage of the amount you invest in a product on their recommendation.
   3. The last is a management fee. This type of fee is usually a fixed percentage of assets you have under management with the advisor charged on a quarterly, bi-annual or annual basis. This type of fee puts the advisor on your team. If you make money, your assets under management will increase and the advisor’s fee will increase accordingly. For example an advisor charges you 1% annually to manage your money. If your original investment is $100,000, the advisor will make $1,000. If your investment grows to $150,000, the advisor will make $1,500. On the other hand, if your investment incurs a loss of $50,000, the advisor will only make $500.
3. Protect yourself from the Madoffs of the world. Find out whether or not the advisor works with other professionals or under a broker/dealer and/or advisory firm. You may want to meet everyone you will be working with. Acquire a list of names and check on their backgrounds. If the advisor is not working with anyone, question their own background and nature of the underlying businesses.
4. Are the services and products the advisor offers well diversified?  In other words, it is important to work with someone who thinks outside the box and is not focused in only one area, such as annuities or commodities. Can the advisor offer alternative investments that are not correlated with the market? What about mutual funds, annuities, structured notes, bonds, stocks, non-traded real estate investment trusts, commodities, etc?
5. What is the advisors approach to financial planning? Does the firm have an investment process in place to buy low and sell high? Is there a 3 to 5 year plan in place to protect your need for income and not take money out of a down market? What are his/her disciplines? How often can you expect to meet with him/her or hear from him/her?
6. Other considerations:
   1. What experience does the advisor have?
   2. What qualifications does the advisor have?
   3. How much does the advisor charge?
   4. Could anyone else besides you benefit from the advisors recommendations (conflicts of interest)?
   5. Has the advisor ever been publicly disciplined for any unlawful or unethical actions in his/her professional career? Confirm the answer your get at: http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm
   6. Get everything in writing.

If you are getting antsy and feel you need to make a change, it is okay. I just encourage you to talk with the right someone who can help you figure out what is best for you. Please do not jump on the first bandwagon you hear about from the same someone who sells it, especially now when making the wrong change could cost you your financial future.