Check The Credentials

An article in the WSJ today entitled "A Star Broker, 'Virtually Unsupervised,' Puts Ameriprise Arm Under Scrutiny" discusses the situation of a Securities America representative in Lousiana who claimed in his seminars and marketing materials to be a CPA but who's license had long since lapsed. Clients and potential clients of financial advisors should take the time to verify the licenses and credentials of any professional to whom they are entrusting their family's financial well being. So how do you that? Go to the the source - the licensing or oversight organization for the the claimed credential.

CPAs - check with the licensing board in your state.

Certified Financial Planners - check the web site of the Certified Financial Planner Board of Standards (www.cfp.net). Click on "Search for a Certified Financial Planner Professional."

Personal Financial Specialists (PFS) - Check with the American Institute of Certified Public Accountants (http://pfp.aicpa.org/). Search on the database of current Personal Financial Specialists.

Brokers and Advisors - Go to www.sec.gov and click on "Check out Brokers and Advisors." This link will take you to a search which allows you to check on the regulatory history of both brokers and firms.

Insurance Agents - Insurance agents are regulated by their state board of insurance. The website for most states boards' will allow you to search for the current licensing standing for insurance agents.

You can never be too careful. Everyday, we as advisors read about cases like the one highlited in the WSJ article. We encourage you to do your due diligence before hiring any advisor.

In today's Wall Street Journal ("Housing Boom's Dark Side"), this article highlites the danger of having less than full replacement value on homes that have experienced increases in home values over the past several years strong real estate market.

In light of this concern, the WSJ suggests the following:

Directly ask your insurance agent "Do I have enough insurance to rebuild my home as it is, and replace my personal possessions?"

As an independent check, the article also suggests that for $7.95 you get an estimate for the replacement cost of your home from the replacement cost calculator on www.accucoverage.com. Take the estimate and compare it to the coverage limits in your policy.