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Understanding a financial advisor's work experience is important when evaluating candidates. It is, however, not always as straightforward as reviewing the advisor's degrees and designations.
The first place to start is reading part two of Form ADV, if the advisor is a Registered Investment Advisor. This will list past experience. If the advisor is a broker, ask to see a resume or curriculum vitae. Visiting the financial advisor's web site can also provide a wealth of information.
Reviewing these documents may not answer all of your questions. For example, an advisor may state he has worked as a financial planner since 1975. Ask several questions. Did he meet with clients and develop comprehensive plans? Was he strictly performing a data entry function, inputting a client's information into a computer program? Understanding past duties can affect the decision to hire him as a financial planner.
Another person may claim he was an investment specialist working in the field since 1987. Did he have experience meeting with clients, determining risk/return characteristics, and building portfolios? Was he instead cold calling eight hours a day on the phone trying to sell the "investment of the week"? Again, it is important to know whether this individual has the experience that you need for your specific objectives. Evasive answers to these questions should raise a red flag.
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