Be choosy when hiring a financial adviser
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The biggest problem with commission-based advisers has to do with objectivity. Are they selling you a product because it's a good product for you or because they get a larger commission on it? Some advisers associated with such institutions as brokerage firms or banks might have a quota they need to fill in order to keep their jobs and the products they're pushing might not be the best for you.

"When you're independent, you're not subject to any quotas of any sort," says Alice Bryan, CFP, of North Star Financial Consulting in Indianapolis. "Any time any planner is affiliated with a broker/dealer and they are called a 'registered representative,' there's going to be a certain productivity level that is expected. And there lies what could potentially be an inherent conflict of interest."

If your adviser, broker or planner gets paid a commission, it does not necessarily mean that he or she isn't looking out for your best interests. But the potential for conflict of interest is greater.

This brings up a very important point: Know what your financial planner is doing. It is, after all, your money that the planner is entrusted with. "There's no reason why people can't ask directly for disclosure," says Coffman. "How much is it costing me to buy this policy? How much are you making for the life insurance sale? For the disability? For the products I'm getting? That should be disclosed."

Does personality matter?
Just about everyone -- except possibly undertakers -- would prefer to work with somebody he or she likes. Certainly, you should trust the person who manages your money.

Whether you like that person falls into the nebulous category of personality. Some clients want a close personal relationship with their planners and others don't.

"Personality really does make a difference," says Francis. "Some want financial planners who really explain things and are nonthreatening. Others really don't care and just want things done. It really depends on the individual and what they're looking for.

"In the end the person really needs to go with their gut and with their heart."

Next up: "Protecting yourself against adviser fraud"