Things to consider when selecting a Financial Advisor as a Pro AthleteSubmitted by The Budin Group on February 14th, 2020
Pro athletes and other affluent individuals tend to be primary targets for unscrupulous financial professionals. It is crucial to conduct thorough research when looking for a financial advisor. A successful, long-term relationship with your advisor can be beneficial to you and your family. Here are a few key factors to consider when hiring a financial advisor.
- FINRA (Financial Industry Regulatory Authority) Member:
FINRA plays a critical role in ensuring the integrity of America’s financial system—all at no cost to taxpayers. Working under the supervision of the Securities and Exchange Commission, we:
- Write and enforce rules governing the ethical activities of all registered broker-dealer firms and registered brokers in the U.S.;
- Examine firms for compliance with those rules;
- Foster market transparency; and
- Educate investors.
Every financial advisor website is required to have a link to FINRA. You can check the background of an advisor on BrokerCheck.finra.com. Any customer complaints and disciplinary actions can be found on the FINRA website.
- Registered with Players Association Ex. NFLPA
If an advisor is registered with a sports player association, that indicates the advisor has taken additional steps to serve that part of the market. For example, the NFL Players Association conducts additional extensive screening on advisors that register for their program so that players can have more confidence when choosing an advisor. A list of approved advisors can be found on the websites for various players associates. The NFLPA website has a financial advisor locator that will show the advisors location by state. Check out https://www.nflpa.com/financial-advisors for a list of financial advisors near you.
Finding a credible advisor may seem obvious, but there are some things to look for that can help you determine if they are someone you want to have managing your money.
- How long has the advisor been in business? It is important to find somebody who has experience in both a good and a weak economy.
- Are they an influencer in their industry? Do they have a strong presence online or appear on their local television station? These are good signs for determining if the advisor is a trusted thought leader to a larger group of people.
- Do you connect with them?
This is a very important. Trust your gut. If you interview somebody and feel good about the interaction, that is a positive sign. Education and experience are important. In addition, you want to explore mutual interests as well. What are the advisor’s hobbies? Musical interests? Sports interests? This will help you determine if you’ve found the right advisor.