She’s looking for a ‘Christian-oriented’ trustee and financial adviser. But how much does religion matter here? (2024)

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Answer: As a practicing Christian and former senior warden of his Episcopal church, Jim Hemphill, a certified financial planner at TGS Financial Advisors, says he’s concerned about starting with a Christian filter to select a financial adviser and a trust company. Instead, start with qualifications. (Looking for a new financial adviser?This free tool can match you to an adviser who may meet your needs.)

Have an issue with your financial adviser or looking for a new one? Email picks@marketwatch.com.

When looking for an adviser, consider a certified financial planner (CFP), as they have undergone extensive education requirements, passed exams, obtained thousands of hours of work-related experience and adhere to a fiduciary duty. Chartered financial analysts (CFAs) and chartered financial consultants (ChFCs) are also required to comply with specific education and training requirements.

Factor in what types of clients they serve, says Alonso Rodriguez Segarra, a CFP at Advise Financial.“If you have a small business or if you’re a corporate executive or doctor, we always suggest looking for an adviser who specializes in those sectors and has extensive experience serving like-minded clients,” Segarra says.

Experience matters, too. “Look for advisers who have at least five years, or ideally 10 or more years of experience. Make sure your adviser uses a third-party custodian like Vanguard, Fidelity, Raymond James or Charles Schwab to hold your assets,” says Hemphill. Having a third party custodian helps eliminate the risk of potential conflicts of interest and the separation helps safeguard an investor’s assets.

He also notes that: “Most investors are well-served by working with fee-only advisers that you can find through the National Association of Personal Financial Advisors (NAPFA).” The reason it’s important to work with fee-only advisers is because they’re only paid by the customer and typically don’t receive commissions or kickbacks when recommending or selling financial products. You can vet any adviser you might want to hire using this checklist. (Looking for a new financial adviser?This free tool can match you to an adviser who may meet your needs.)

Religion and values can also be a factor in your decision. “It’s essential to remember that personal finances are more personal than financial, which is why we have seen that when there are values or religions where the client and the adviser share experiences, stories and beliefs — the planning process can be achieved with different degrees of connection,” says Segarra.

As for the trustee, generally speaking, you can ask a family member or friend to be your trustee as long as they’re honest, reliable and will act according to your wishes outlined in the trust. “They should also have a good understanding of financial matters and investments,” says Ryan Haiss, a certified financial planner (CFP) at Flynn Zito Capital Management.

While a trustee’s religion may not matter for some people, others prefer to have someone with shared faith and values in control of their healthcare directive and finances. But most importantly, any trustee should act as a fiduciary, and one’s religious affiliation should come second to one’s ability to act in someone’s financial best interests. More than honoring your religious beliefs, you want to be sure you have a trustee in place who understands the complexities of your finances, is someone you trust to act on your wishes and who is capable of making decisions on your behalf.

Have an issue with your financial adviser or looking for a new one? Email picks@marketwatch.com.