Choosing a Planner
In your search for help, you
need to be able to recognize who you can trust. Implicitly.
| This isn't always easy considering the confusing mix of acronyms
and designations for a variety of financial advisors who may, or may not,
be qualified or committed to give you comprehensive and unbiased planning advice.
To help you in your decision, we offer you the following ten tips to prepare
you and help you in your search for the right planner. | | Looking for a
financial planner?
Use our
Find a CFP Professional
search function. |
Ten tips on choosing a Financial Planner
1. Know what you
want: Determine your general financial goals and specific
needs (insurance policy, estate planning, investments, education,
etc.).
2. Be prepared:
Read the newspapers and finance publications to maximize your
familiarity with financial planning strategies and terminology.
3. Talk to others:
Get referrals from advisors you trust, from colleagues and
friends.
4. Look for competence:
Many degrees and designations are held by individuals working
in the financial planning and investment services. Choose
a professional. Choose a Certified Financial Planner professional
who has met high standards of financial planning professionalism
and abides by a Code
of Ethics.
5. Interview more
than one planner: Ask them to outline their education, experience
and specialties, the size and duration of their practices,
how often they communicate with clients, and whether assistants
handle client matters. Make sure you feel comfortable discussing
your finances with the individual you select.
6. Check the planner's
background: Depending on their background, call their professional
associations to check on their complaint record and call FPSC
to see if they are a CFP professional in good standing.
7. Ask for references:
Find out if the financial planner works with any other professionals
such as accountants, insurance agents or legal advisors. Request
references from these individuals.
8. Know what to
expect: Ask for a registration or disclosure document detailing
method of compensation, conflicts of interest, business affiliations
and personal qualifications.
9. Get it in writing:
Request a written advisory contract or engagement letter to
document the nature and scope of services the planner will
provide. You should also understand how the planner will be
compensated.
10. Re-assess
the relationship regularly: Financial planning relationships
are quite often long-term. Review your relationship on a regular
basis, making sure your planner understands your needs as
they change and develop over time.
|
are certification marks