A retiree seeks reassurance that investment advisers can be trusted to manage her money

What happens when someone with trust issues regarding advisers decides they need help with their investments?

In some cases, they write to me for reassurance that they will be properly looked after by an adviser. Here’s the latest: “Now that we are both retired the management of our funds is more complex, and while I do need support, I feel quite apprehensive to trust our hard saved retirement funds to someone who in the end has to answer to their own company/managers,” a reader writes. “Is there some advice that you can offer to help provide reassurance on using financial advisors?”

Here’s some advice on finding good advice: Prepare for a slog in finding an effective and trustworthy adviser, but expect to be rewarded when you find someone suitable. Good advisers are out there. I’ve met them face to face, I’ve interviewed them and quoted them in columns because they are knowledgeable, ethical and personable.

This reader has had a few different advisers over the years, but never felt comfortable enough with any of them to hand over all her investments. Now, as a retiree, she wants to consolidate everything with one person who will protect the retirement money she and her spouse have saved.

A plan for finding the right person: Build a list of potential advisers and then interview them to see if they’re the right fit. Find advisers by talking to friends and family to see if they have an adviser they would recommend. Also try a directory of financial planners, advisers and coaches put together by financial blogger John Robertson. Shortcut to this webpage: https://t.ly/XBXQI. Note: Some people on this list do planning only, others additionally provide portfolio management services.

Key questions to ask in interviewing prospective advisers:

• Do you provide the specific services I need, such as a strategy for converting retirement savings into income, as well as tax and estate planning?
• What kind of investment products do you use?
• Based on my preferred risk level, how in general terms would you build a portfolio for me?
• How would you protect my portfolio against a stock market correction, recession, inflation and other risks?
• How many clients do you have who are similar to me, and what services are you providing for them?
• Is my portfolio of sufficient size to enable you to provide the services I want?
• What are your fees, in both percentage and dollar terms as applied to my situation?
• What accreditation do you have as an adviser, and how long have you been in the business?

A few years ago, I put together a checklist to help assess whether they’re getting value from their adviser. It may help inspire some questions to ask prospective advisers.

There are lots of reasons why a relationship with an adviser doesn’t work out for clients. One of them, let’s face it, is that they didn’t put enough work into finding the right adviser. Don’t settle for someone. Keep slogging.