Virtually every post here has recommended that a prospective seller of a settlement, lottery award, or mortgage note seek the advice of both legal and financial counsel. You can open the phone book to “Accountants” “Financial Advisors,” or “Financial Planners” to get a list of names, but this isn’t enough to find someone qualified to help you.
References. Talk to people you know about how and where they get financial and investing advice. Find out what types of services they got from the professionals they hired; optimally, you want someone who handles your type of settlement on a regular basis. If you have a settlement as a result of a lawsuit, your attorney might have suggestions, but you should evaluate their recommendations with the same critical eye as any other.
Professional Associations. Accountants and financial advisors often belong to professional associations, such as the American Institute of Certified Public Accountants or the National Association of Personal Financial Advisors. Find your local chapter for these organizations and talk to them. Ask about members who’ve handled your type of situation before.
Beware. Beware of financial advisors who work on commission, or who work solely with one or two investment organizations. Beware any accountant or advisor who guarantees investment returns and glosses over the risks. If they’re anxious to get their hands on a large sum of cash, they may be too eager for you to sell your settlement, rather than give you objective advice about all of your options.
Fees. Many financial advisors work for “fee-based,” “fee-plus-commission,” or “commission-based” compensation. This means that they earn a commission or the products or services they sell you. While this is legal and doesn’t mean the advisor is dishonest, it may lead him to steer you toward the products that will earn him a commission. By contrast, a “fee-only” financial advisor doesn’t work for commission; you will pay him directly for his services. While this means a cash outlay up front for you, it also means he has no incentive to lead you toward a particular product and may give you more objective advice.
Certifications. Look at any professional designations your prospective advisor has. Designations such as CPA (Certified Public Accountant) or CFP (Certified Financial Planner) indicate that the person has certain levels of education and/or has passed certification exams. Ask the prospective advisor about his qualifications. If he has a professional designation, check to make sure the designation is still active and good standing. For example, you can check with your state’s regulatory agency for Certified Public Accountants to ensure a CPA has a valid license.
The Interview. Most importantly, talk with your prospective advisor on the phone or in person. Get the details about his qualifications, and determine whether his areas of expertise meet your needs. Ask about prior experience with your type of settlement. Ask him specifically about relationships with investment and insurance companies, and how you can be sure that his advice is independent and objective.
If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.
