It Takes Planning to Choose the Right Financial Planner

For example, they have to disclose any investor lawsuits or compliance problems. The service does not do extensive background checks, but when planners disclose such information, the complaints against them are investigated, Waymire said.

Based on the information financial planners supply, such as work experience, education and credentials, planners are rated on a five-star scale. Only professionals with three, four or five stars are admitted to the registry.

The registry contains detailed profiles and disclosure statements for 450 financial professionals. Forty-two percent of the advisers have advanced degrees, and more than 80 percent have multiple certifications, the most common being a CFP.

No financial services company or adviser has an equity stake in Paladin, nor do any of them pay the company to be listed, Waymire said. Paladin makes money by charging advisers a small fee when a match is made with an investor. The adviser is charged $24, $36 or $54, depending on which service the client is looking for.

For their part, the financial professionals listed in the registry agree to fee-only compensation from clients reached through the service. The fee can be an hourly rate, a fixed fee or a fee based on the amount of assets under management.

To help people narrow their search, registry entrants are broken down into three categories:

· Planners. These advisers are paid to either review or develop a financial plan for you.

· Advisers. These professionals help you decide how to invest your money by recommending various investments.

· Investment Managers. This would be an adviser who has authority, albeit limited, to make financial decisions on your behalf without prior approval.