Secure Your Savings: Finding the Right Financial Adviser to Keep Your Goals on Track

COLUMBUS, Ohio - In recognition of Financial Planning Month during October, the Ohio Department of Commerce Division of Securities is shining a spotlight on smart strategies for Ohioans looking to choose the right financial adviser or investment service.

A recent study by Allianz found that nearly half of Americans do not have a written plan financial plan regarding their long-term savings goals. In addition, among those who are contributing to a retirement plan, such as a 401(k) or an IRA, 59% of respondents said they were unsure of what else they should do to prepare for retirement.

With the broad array of financial products and services available, there are many directions Ohioans may turn to seek professional guidance in navigating complex investment decisions and retirement planning. However, finding the right - and qualified - financial professional often requires careful consideration and thorough research.

"Professional financial advice can be incredibly helpful and valuable in such a complicated and ever-evolving landscape of financial investments," Ohio Securities Commissioner Andrea Seidt said. "But it's equally important to make sure you choose someone who understands your own unique financial goals and will approach their work with that in mind."

The Division of Securities recommends Ohioans take the following steps when evaluating potential financial professionals with whom to work:

• Conduct a Background Check: Before meeting with anyone, verify their credentials and check for any disciplinary history by using FINRA's BrokerCheck and the SEC's Investment Adviser Public Disclosure website. For state-specific information, the Ohio Division of Securities can be contacted at 1-800-788-1194 to confirm if a firm or broker is licensed to do business in Ohio.
• Ask the Right Questions: When interviewing potential advisers, it is important to be direct. Key questions should cover their experience, how they are compensated, and the services they provide. It is crucial to understand whether they are acting in a fiduciary capacity as your adviser or are acting in a sales capacity where their legal duties are transactional. Ask them which hat they are wearing - fiduciary or sales - when they are making recommendations that impact your financial future.
• Understand How Advisers Are Paid: Ask for a clear explanation of their fees by simply asking "How much will you and your firm make over the life of this investment if I follow your advice and recommendations, including amounts paid in revenue-sharing and advertising reimbursements outside of any commissions?" Compensation can be tricky and will sometimes include hidden fees beyond the usual fee charged based on a percentage of assets managed, product commissions, and hourly or flat fees for services. Transparency is key, and there should never be pressure to make a quick decision or purchase a specific product without understanding the key features, risks, and cost.
• Ensure Advisers Understand Your Situation: A good adviser will have experience working with clients in similar financial situations. Whether you are nearing retirement, managing student loans, or planning for a growing family, the right adviser should be able to provide relevant, insightful guidance beyond generic advice. It's also important to make sure they understand your expectations in the event you engage their services.
• Act Immediately if Fraud is Suspected: Ohioans who are considering an investment or suspect they have been scammed can contact the Division of Securities' Investor Protection Hotline at 877-683-7841 for guidance or to file a complaint. The Division also encourages Ohioans to access a range of available resources on its website by clicking here.

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John Crist (KRIST), Director of Compliance, Division of Securities, Ohio Department of Commerce
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About the Division of Securities
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.