InvestorSecurities Division, MarylandEducation Attorney General’s Office How to Choose a Financial Planner 1. Interview and ask questions to fi nd the right 2. Do your homework; determine your fi nancial fi nancial planner. status and objectives. Be prepared to talk about your specifi c fi nancial goals. • What is the planner’s and experi- ence? Ask for and check references. Deter- • Gather your data: income, savings, real estate, mine if the planner has experience in areas , , wills, etc. that match your interests and needs. • Identify your goals and objectives as an indi- • Does the planner off er services that fi t your vidual, a couple, a family. income bracket and philosophy? • Some people may need a planner to clarify or • Does the planner off er a wide range of resolve a particular problem or help achieve a investment choices, or only those for which particular goal. Make sure the planner under- the planner will receive a fee or commis- stands your needs. sion? • Give this information to your planner in • Ask how the planner will be paid, and how writing, and keep a copy of this and all other payment will be made. Payment methods pertinent documents for your records. include fl at fees, performance based fees (a fee based on the increaseincrease in the vvaluealue of 3. IfIf yyouou need on-going planning and ad- youryour account), hourly rates, commis- visoryvisory serservices,vices, be cercertaintain that the planner sions, or a combination of these will provide:provide: methods. • A clearly-written plan that sets forth • Call us for a copy of the Finan- goals, alternatives and risks. cial Adviser Interview Checklist. We developed this checklist to • Specifi c suggestions to improve your help you choose a fi nancial plan- management. ner. You can use the checklist during an interview or send it to • Projections of the impact of shifts in a fi nancial planner as part of a interest or infl ation, and a plan to gen- preliminary screening. erate cash in case of emergency.

• Call us to inquire about your • Monthly or regular written summaries of planner’s status and to check transactions and the status of your disciplinary history. accountaccount oorr pplan,lan, ddocumentationocumentation ooff rrecommenda-ecommenda- tions,tions, aandnd pperiodiceriodic rrevieweview ooff yyourour pplan’slan’s status and progress.

200 St. Paul Place • Baltimore, MD 21202 • 410-576-6360 www.oag.state.md.us/Securities Personal Financial Specialist (PFS) designa- • Access to other sources of advice from tion. Th e PFS designation is awarded to , bankers, brokers, , etc. CPAs who have several years of fi nancial (Check references here, too.) planning experience, maintain a continuing education schedule, and pass a qualifying 4. Make sure you can understand account and exam. Call 1-800-862-4272. plan statements. Remember to do your own homework, and call us • Understanding your account and plan to inquire about your planner’s status. statements is key to controlling your invest- ments. Check the statements over carefully as soon as you receive them. Familiarize yourself with the format, terms and codes Call us, We’re here to help. used by your adviser. Th e Maryland Securities Division • If you ever fi nd information in your ac- (410) 576-6360 count statement or plan that you do not understand, contact your adviser immedi- Visit our website: ately and get a satisfactory explanation. http://www.oag.state.md.us/securities

5. You can check with industry groups that off er help fi nding qualifi ed fi nancial planners.

• Th e Financial Planning Association (“FPA”) will provide a list of planners in your area, Free Publications Available along with brochures about how to select a fi nancial planner. To be in this referral If you would like to receive a full listing of all our program, planners must affi rm that they education publications, visit our website, meet all regulatory requirements applicable call us or send your request to: to their practice, and agree to abide by the FPA’s Code of Ethics. Investor Education Call 1-800-945-4237. Maryland Securities Division 200 St. Paul Place • Th e National Association of Personal Fi- Baltimore, MD 21202 nancial Advisers, whose members must be fee-only planners (i.e., planners who are not compensated through commissions), will provide a list of members from your state along with a fi nancial planner interview form and a brochure that helps illustrate how and how much the planner and fi rms will be compensated. Call 1-888-FEE- ONLY.

• Th e American Institute of Certifi ed Pub- lic Accountants will provide the names of members in your area who have earned its

2/09 www.oag.state.md.us/Securities