[Moneyguy1]

AHA. Rate of return:

It all depends on (1) the market, (2) the expertise of the counselor and (3) the amount of risk one is willing to take. I know one Edward Jones rep who consistently recommends GE to new clients. No risk and relatively consistent performance. And for this, he gets a commission?

And, I do agree with tabs that the better ones are found by referral. Most of my new clients came that way. I must have been doing something right!! But, be advised that those who work strictly on commission (I was fee only) have a vested interest in making an account turn over on a regular basis to generate those commissions. Remember the old joke: How can I make a small fortune? Simple. Start with a big one. As for fee only planners: Fee only can vary from advisor to advisor. Mine varied with the client, generally based upon a mutual agreement. Since I am now semi retired, I only have a few that pay (average less than 1%) but I also do a fair amount of pro bono work as well. My way of giving something back.

As for accreditation, there are a number of schools now teaching financial planning both at the Bachelors and Masters level. The American College is just one. The courses there can be home study, tests given through the Sylvan Center. They are tough and thorough. Other home study courses as well as University courses prepare the individual for series 6 and other broker ratings, but cannot be taken without a sponsoring agency. One problem with financial advisors is the insurance companies and banks who throw that designation around without any real formal training, many times advising only insurance based products such as life, modified whole life, annuities, etc.

There are a number of organizations demanding that their members obtain the required training before they can carry a trademarked professional designation. These include CFP, AFC, ChFC, RFC. All these require extensive coursework. In addition, independent advisors generally carry, like doctors and other professionals, a form of errors and omissions insurance. Many financial advisors also have a background in accounting, some are even CPAs. In order to keep my accreditation, I have to have 40 credits worth of study every year, verifiable upon annual renewal. On top of that, I was also a real estate broker, in the business since I was 18 until just a few years ago when I relocated.

For self education, I recommend joining the American Association of Independent Investors (AAII). They have regular chapter meetings in most large cities, giving you the opportunity to listen to the successes/failures of other investors. I am also in favor of the beginner subscribing to the Motley Fool website for additional insight. And, if you so choose, mutual funds can be an excellent way to get some degree of expert management at a very low cost. Find those funds that not only have a good track record, but also have the lowest annual management fee and no 12b-1 fee.

Hope that helps.

Good luck!!