Previously I have noted that most of us don't really need a financial advisor. What we need is financial common sense and motivation to do the right thing. If you determine you do need a financial advisor, you should know there are two types of people who call themselves "advisors."

Registered Investment Advisor - has a license to provide financial advice and with it a fiduciary responsibility to put the client first. This advisor works for you.

Broker or planner or advisor or insurance representative - has a license to sell financial products. Any advice is supposed to be incidental to the sales role. They do not work for you; they work for their company.

I believe there should be a wall between advice and sales. Problems arise when advisors become salesmen and when salesmen become advisors.

Here are questions to ask apotential advisor:

What experience do you have? What are your qualifications? Which licenses do you hold? You want to work for someone competent who has your best interest in mind. There are plenty out there who know very little other than how to sell. Be careful of designations, especially those purporting to be experts with seniors. CFP - Certified Financial Planner - is one of the better designations, but many CFPs are commission salesmen. The last thing you need is a "certified" salesman.

What services do you offer? What is your approach to financial planning? Do you specialize only in investments? The planner must be able to help you and your particular situation.

How will I pay for your services? It could be fees based on an hourly rate, a flat rate, or on a percentage of assets. Or it could be commissions paid by the client or commissions paid by a third party. Ask about typical charges and how their system works.

Also ask if you will be the only person working with me. And finally, get it all in writing.

One of my clients wants me to pass this on from her past experience - "watch out for those who claim they don't charge any fees." They can cost you the most. On $100, they may take out $5 as a sales charge, then $2 a year for investment costs. That $7 for the first year compares to 10 or 20 cents for other investments. 70 times more!

Another client asked her previous broker about the fees, and she was given a vague answer mentioning several hundred dollars. I later estimated she was paying $35,000 a year in fees, and she had one of the worst and most inappropriate portfolios I have ever seen.

Is it expensive to have a financial advisor? Could be if you are charged commissions and management fees and annual fees. But not necessarily. A $150 an hour planner might be able in two hours to give you advice worth thousands in the long run. We pay $60 to fill up the car. As Money Coach I do a financial physical for $80, and the advice will last longer than a tank of gas.

The bottom line - selecting a financial advisor is an important decision and you must get it right. Interview at least three.

The Money Coach is Bill Stanley, MoneyCoachBill@aol.com. This information was first presented on Fox 21 Morning News on July 8, 2008.