Finding financial advice Some homework is needed on your part to find an adviser whom you can trust

Why is it so tough to get good financial advice?

Because good advice goes hand-in-hand with trust. And that precious commodity has eroded with each headlined case of accounting fraud, brokerage conflict of interest and mutual fund abuse. The scandals have taken a cumulative toll, leaving many Americans disgusted at the greed of wrongdoers and dismayed and doubt-stricken about their own financial advisers.

Another reason that makes getting solid, independent advice difficult is monetary. There's a wealth barrier that prevents people of moderate means from being accepted as clients by advisers who charge an annual fee based on a percentage of the client's assets. Many limit their advice-giving to what they call "high net worth individuals."

If you don't have a net worth of at least $250,000 to $500,000 when you total your financial assets and subtract your home, you won't make the cut at most money management firms around Portland. Many won't take you on until you've accumulated $1 million or more in stocks, bonds or other financial assets.

You can still get advice from brokers or planners who earn commissions based on what you buy from them, but the advice may be colored by sales incentives.

But independent, unconflicted advice is out there, even for the less well-heeled, says Sheryl Garrett, a Kansas City financial planner who heads a band of 225 like-minded planners in 45 states, including Oregon and Washington. Garrett, author of "Just Give Me the Answers: Expert Advisors Address Your Most Pressing Financial Questions," will be signing her book at Portland-area stores on Friday.

She had the middle class in mind as she developed the network of what she calls "a new breed of financial planner," advisers who offer independent hourly, as-needed financial planning and advice on a fee-only basis.

Accountants and attorneys are paid by the hour or the project, "Why should financial consultants be any different?" she asks.

That way, clients can get a full-blown plan that covers finances, insurance, college saving, retirement and estate planning or a simple solution to a one-time question -- which mortgage is the best deal? for example.

The Garrett Planning Network isn't the only one offering financial advising for a fee instead of being compensated through commissions or by charging a percentage of portfolio assets. The National Association of Personal Financial Advisors also has members in Oregon and Washington, and there are many other independent advisers to consider.

Here are some steps to take on the way to finding one:

KNOW THYSELF

First, figure out what you need. This means setting short- and long-term financial goals. General ideas such as "I want to retire early" or "We want to go to Europe in a couple of years" are good enough for now; your planner will help you clarify specifics later.

Assess your strengths and weaknesses about planning, saving and investing. What do you do well and where do you need assistance? You may want an overall plan, a roadmap for the next several years -- and are prepared to pay up to $5,000 for it. Or you may want a check-up on a plan you've designed, a second opinion, which could cost a few hundred dollars.

Don't expect to turn over all the researching and decision making to your adviser. The more you know, the better understanding you'll have of what your adviser suggests.

Garrett, for instance, expects her clients to join her in the digging.

"Scoot your chair up to the computer," she tells her clients. "This is how we do it," she says, partly so they can learn how to make retirement projections, for example, and partly to "take the smoke and mirrors out of it."

MAKE A LIST

You can ask friends and relatives for opinions about financial advisers they would recommend. If the referral is from someone who knows what they're talking about, consider it.

But don't be bound by suggestions from people who only think they know what they're talking about. Does your brother-in-law know he's paying way too much for that annuity? Does your golf partner realize that the bond fund her adviser got her into is among the worst-performing of all similar funds?

Check out the accompanying resource list and visit Web sites or call those organizations. Find members in our area who are taking new clients. The planner need not work in your community. One or two face-to-face visits supplemented by phone calls and mailings is all it takes.

WHITTLE IT DOWN

You should have half a dozen names by now. Visit their Web sites or call their receptionists to get some more details. Eliminate planners with restrictive asset minimums or fee schedules you can't afford. Think twice about a planner who's on the verge of retiring and may sell his practice or pass you to a less-experienced employee. Cross off advisers who've been disciplined by regulators or have ethics violations with planners' organizations.

Now, you'll have maybe three good prospects. Call each one to schedule a visit or a telephone consultation. Ask what you should bring to the interview or if there is a client questionnaire you should fill out and send ahead of your appointment.

PREPARE, THEN MEET

Just because the initial interview is free, it doesn't mean you can waste the planner's time or try to extract free advice. Come prepared with information about your income and expenses, brokerage statements, retirement account reports or other documents relevant to the advice you're seeking.

Take along a list of questions to ask the planner to help you understand and compare credentials and experience, the scope of work to be done and at what cost.

Gauge your comfort level as you talk. Does the planner listen as well as talk? Appear interested in you and ready to offer the help you need? Seem more interested in building your wealth rather than his or hers?

Answer yes to those and it could be a "Casablanca" ending and the beginning of a beautiful friendship.

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