You wouldn't buy a stock, bond or mutual fund without doing some research (at least we hope you wouldn't). Entrusting your future to a financial planner requires at least as much due diligence.

Although most financial planners are investment advisors, not all advisors are financial planners. True, a planner can't charge to dole out investment advice without being registered with the Securities and Exchange Commission or the state regulatory authority, but that doesn't mean he knows what he's doing or is even on the up and up. And even though a planner might have some impressive sounding letters after his name ? like CFP for certified financial planner or CFA as in chartered financial analyst ? there's no state or federal law requiring those credentials.

So before you hand over responsibility for your savings, investments, insurance, taxes, retirement and estate planning to someone, you need to do some sleuthing.

When interviewing a financial professional, be armed and ready with some critical questions (see chart below). Among the most important are to determine if the planner offers products and services that suit your needs. Also be sure to understand their compensation structure: Do they work on an hourly rate, flat fee or commission? Come right out and ask if they've ever been disciplined by any government regulator for unethical or improper conduct or been sued by a client.

Since that last question is almost certain to create an awkward pause in the conversation, you want to do a little homework first. A good place to start is to check out the advisor's Form ADV, which is used for SEC and state registration. In most cases an advisor who manages $25 million or more in client assets has to register with the SEC. The form, which can be searched online, has information about your prospective advisor's education, business and ? most important ? disciplinary history going back 10 years.

It's also a good idea to check with your state regulator, the ease of which, of course, varies by state. Fortunately the North American Securities Administrators Association maintains quick links to authorities throughout the U.S., Canada, Mexico, Puerto Rico and the Virgin Islands. Furthermore, the Certified Financial Planner Board of Standards offers a wealth of information, including a searchable database of state disciplinary actions.

Finally, if you plan on working with a securities dealer or broker, be sure to avail yourself of the Financial Industry Regulatory Authority's new BrokerCheck. Launched by FINRA last year, this service consolidates background information from the National Association of Securities Dealers and New York Stock Exchange Member Regulation.

Your financial future is full of enough uncertainties. Some quick web searches, basic questions and common sense can help ensure that the honesty of your planner or advisor isn't one of them.

It Never Hurts to Ask

Questions to ask before hiring a financial professional:

What experience do you have, especially with people in my circumstances?

Where did you go to school? What is your recent employment history?

What licenses do you hold? Are you registered with the SEC, a state or the NASD?

What products and services do you offer?

Can you only recommend a limited number of products or services to me? If so, why?

How are you paid for your services? What is your usual hourly rate, flat fee or commission?

Have you ever been disciplined by any government regulator for unethical or improper conduct or been sued by a client who was not happy with the work you did?

Source: SEC