Here's what to look for in a financial planner

By Marshall Loeb
CBS MarketWatch

NEW YORK — Investors who have seen their portfolios tank may want to look to a new financial planner for more guidance. Don't forget a few simple points in the selection process.

When you are shopping for a new financial planner, it may be wise to choose a so-called fee-based professional. You pay him or her on a flat-fee basis. Other types of planners receive all or part of their compensation in commissions from the mutual funds and other financial products they sell to you. And there's always the possibility of conflict of interest. Search also for a Certified Financial Planner. This shows a level of education, experience and adherence to a code of ethics. It is always best to use someone recommended by a trusted friend or colleague.

To learn about a planner's philosophy, experience and regulatory history, check the Securities and Exchange Commission form ADV. Find out if the planner's practice involves situations similar to your own. If you don't have this option, you can phone the Financial Planning Association at (800) 322-4237 for a list of planners in your area.