In picking the proper financial adviser, some traits are crucial.

First of all, the difference between the professional and the amateur is that the amateur is focused on how much he or she is going to make. The professional is focused on how much he or she can lose.

Competence and transparency are important. How do you know for sure?

Editor's Note: Inside the World’s Greatest Retirement Lie
Find Out the Truth, See the Details.

You need to ask the prospective financial adviser how much their annual dividend income is from their investments and also their age.

Someone 75 years old with only $15,000 of annual dividend income isn't better than someone who has $85,000 of dividend income and is 45 years old.

Dividends are the first sign of safe, high-yield value investing. Those who have built a “Dividend Machine” that more than pays their living expenses before age 55 has a very good idea on how to beat the stock market and, no doubt, practices value investing.

Dividends are the sure sign of an excellent value investor who actually practices value investing and just doesn’t talk about it.

Finally, the investor’s portfolio should consist of large-cap names preferably above $5 billion in market cap.

These companies, for the money, are safe, high-yielding investments that combine safety, growth and income.

Make sure he or she understands that the volatility in the equity's price is not equal to the risk in the stock.

Editor's Note: Inside the World’s Greatest Retirement Lie
Find Out the Truth, See the Details.

In fact, it can be a great opportunity like Visa was to my readers. It dropped drastically before I bought it for my readers and those who had confidence made well over 60 percent in about 1 year.

Finally, honesty is paramount. Paying a large sum for a large upfront fee is the sign of this. Find a person who offers a money-back guarantee or a low-price trial period. Any adviser who doesn't agree to those terms really isn't confident in his or her abilities, are they?

Remember as hard as you have worked for your money, someone else is willing to work twice as hard to separate you from it.

About the Author: Bill Spetrino

Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.