More often than not, the intertwined complexities of taxation and finance create a need for professional help in designing and maintaining an effective financial strategy. Making quality financial decisions requires an ample commitment to learning and research. While the Internet’s easy access to information has helped to make it feasible for individuals to independently manage their finances, the magnitude of investment skills and information you need can be overwhelming.

The financial world is filled with foreign concepts, esoteric language, legal rules and difficult methodologies. Whether you want to develop a portfolio, plan for retirement, pay for college, or reach other major financial goals, there are professionals who have spent their lives serving people with the same concern. It is a good idea to take advantage of their experience. The correct choice can provide you with financial gains while at the same time it gives you peace of mind.

The first question you must answer is whether you need a financial advisor in the first place. If you are just beginning to set money aside for the future, you can find plenty of information to get you started by surfing the Internet or attending workshops in your area. Community colleges often provide inexpensive classes where presenters are required to provide educational material rather than a sales pitch.

W. Clement Stone once said, “If you cannot save money, then the seeds of greatness are not in you.” If you have come to grips with Mr. Stone’s insight and have begun to prepare for your financial future, you need to determine if you are making the trip alone or with a guide.

Your life is dynamic. In every decade, it will change. The financial world is every bit as dynamic as we move more deeply into globalization and economic interdependence. If you assume that you can keep up with the changes in your life and in the world, knowing and understanding the choices before you, the Internet is probably all you will ever need.

A few short decades ago, if you wanted to save money on a TV, Heathkit (a company relegated to the ash bin of history by failing to adapt to technology) would sell you the vacuum tubes and other components to assemble it yourself. Then computerized assembly lines lowered the cost of TVs dramatically. People concluded that buying a Sony was a better decision. The same is often true with financial decisions.

You can make financial decisions by yourself or buy advice from an experienced professional. Dalbar™, a financial research firm, has been tracking individual investor behavior since 1984. Its research has documented that the financial decisions of individuals are commonly costly and mediocre. Alternatively, the appropriate financial professional can help you make better decisions and make fewer, less costly errors.

In years past you could ask an advisor for references to existing clients. On the surface this seems sensible.

In reality, no one ever refers a prospect to a disgruntled client. It was a self-selecting process that favored the advisor. With the recent changes in privacy laws, advisors are prohibited from disclosing even the names of clients. You need to have an alternative way of sorting through the list of advisors you may consider.

In selecting any advisor you need to understand their relationship to you in their capacity as a financial advisor. The easiest method to determine this is to clarify if the advisor will provide written confirmation of a fiduciary duty to you. A fiduciary is a person who occupies a position of such power and confidence with regard to the property of another that the law requires him to act solely in the interest of the person whom he represents. Generally, this requires that you hire or retain the person under an agreement to pay them directly for their services. The fees are usually deducted from your accounts rather than paid from your monthly budget. You will receive billing statements and know what the advice costs you. This is the same way you work with your attorney and accountant.

Often investors pay indirectly by purchasing investment or insurance products generating a commission for the agent. In this scenario, the compensation is paid from the investment sponsor to their agent/broker. Your assets may have generated the cash for the commission, but the company paid their agent, not you. When you buy a car, your cash generates the money to pay a commission to the car salesman. However, on the car lot, everyone understands the rules of the game. The salesman is not your representative.

It may be appropriate for you to receive advice from a commission agent. You may even get good advice from a commission agent. However, as an “advisor,” e/she is a representative of their firm. Under the law of agency, the company’s representative cannot be a fiduciary for you. It would require having two employers, a split obligation, with unresolved conflicts of interest. You, therefore, have the responsibility of evaluating the recommendations and the appropriateness for attaining your goals just as you do when you purchase a refrigerator or automobile. In financial planning and investing, this can be a heavy burden, indeed.

Peace of mind can be achieved by clearly understanding what duties your advisor has in the relationship with you. You need to know whether they are working for you and ONLY you. When that is all made clear, you know the limits of their responsibilities and what additional work you may have to do. Clarify your relationship and you should have peace of mind.

Several on-line resources to help you are www.cfp.net, www.fi360.com, and www.paladinregistry.com. The Paladin Registry is recommended by Kiplinger Magazine.

(Editor’s Note: Donald Creech is President of Investor Resources, Inc. a fee-only, SEC registered investment advisory firm. Mr. Creech is a Certified Financial Planner™ and an ACCREDITED INVESTMENT FIDUCIARY™).