subject: A Guide To Finding A Financial Planner [print this page] A Guide To Finding A Financial Planner A Guide To Finding A Financial Planner
Before you hire a financial planner, you should conduct an interview and ask a lot of questions so you can determine whether he or she will be able to effectively handle your accounts. Your first question should be about experience. You need to ask about past work experience in order to find out how that knowledge will be relative to your current situation. Ask how many years your planner has been in the business, how many companies have they been associated with and the types of companies as well. You will also need to find out about any special services your financial planner could provide, for example, if you will also be seeking investment advice, it is important to find a planner that knows how to work effectively in a downturn market and economy. Your next question should be about the planner's qualifications. You may not know this, but the term "financial planner" covers a wide variety of finance-related professionals. It is important to know what qualifications they have in relation to financial planning and whether or not they have received any certifications or marks for their work. Professional certifications, such as Chartered Financial Analyst or Certified Financial Planner, help to prove that a planner has passed stringent exams and is dedicated to the profession. It may also be helpful to find out if the planner is continuing their education to keep up with changes in the industry. Find out what services the candidate is capable of offering. Proper licensing and credentials are required for many services. Lacking proper licenses, financial planners may not offer insurance or securities products such as mutual funds or stocks nor offer investment advice without registrations with state or federal authorities. Some planners are only eligible to give advice in particular areas such as tax matters or financial planning, while others are not licensed to sell financial products but can offer financial planning advice on a broad range of issues.
Your next question should be whether or not the planner works independently of financial product sponsors. Some planners work for discount or full-service stock brokerage firms, banks or insurance companies - this is what is known as financial product sponsors. It is important to know what type of financial situations or clientele the planner enjoys working with, so you know what to expect. For example, some financial planners will provide professional advice only in specific areas, yet others can create a multi-faceted plan that will bring all of your financial goals together under one umbrella. Be sure to choose a planner whose viewpoint in financial investments matches your own to avoid getting someone that is too cautious or too aggressive for your tastes. Inquire as to the fee structure for the planner's professional services. Actual cost will likely be determined by the goals and desires of the client, though any reputable financial planner ought to be capable of offering a rough guess regarding probable pricing. Information necessary to conduct a thorough analysis of any fee structure includes the professional's hourly rate, flat fees charged for particular types of services, and commission structures for any product purchases made as a result of professional advice received. Determine whether the candidate is licensed. Even though some states do not require licensing, the consumer may very well still insist that their planner be licensed and regulated. Many un-licensed financial planners offer advice in securities or insurance. The importance of licensing is to assure the qualifications of a candidate since in order to be licensed you must pass examinations and have mandatory annual continuing education.
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