Levels of Trust

Trust 1 = Technical Competence and Knowledge

• Do I, the client, trust that you, the advisor, know what you're doing?

Trust 2 = Ethical Conduct and Character

• Do I trust you, the advisor, will act in my interest and not inappropriately transfer wealth during the intermediation process?

Trust 3 = Emphatic Skills and Maturity

• If I tell you personal information about myself and my family, I need to trust that you, the advisor, will handle that well.

Advisor Selection Guidelines

Rule 1 - Use separate custodian;advisors should never take possession of the assets under management.

Rule 2 - Avoid using family members or old friends, always have a clear separation plan and understand any management termination clauses in your advisor's agreement.

Rule 3 - Understand how your advisor and custodian are compensated including the method and the frequency of billing.