Finding a Financial Planner

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When should you see a financial planner? How would you find one if you had to? What should you ask when you do? All of us from time to time need help from an expert to solve some of our problems. In this article, we explore what you need to look into when deciding to get help from a professional financial planner.

When Would You Need a Financial Planner

 You will have little need for a professional financial planer if you are organized and have your objectives clearly in mind. However you might want an expert opinion in certain areas to verify your approach or to suggest ways you could possibly improve our results. No financial plans exist that don't require frequent modification due to changes in tax laws or personal circumstances. Fixed financial plans worked great in the decades past, but not any more. Cradle to grave planning nowadays is valid only for those people who refuse to take charge of their own lives and make their own decisions. The wise will use a professional financial planner only for technical advice on specific investment choices or objectives, estate problems, tax problems, insurance questions, and the like.

What to Look For When You Need a Financial Planner

When you need and want a financial planner, how do you find one and what do you look for? If you already have an investment advisor, tax advisor, or an estate-planning attorney whom you're comfortable with you always can ask one of them for a referral. The pros, since they work together, know each other, and have opinions of one another. They make an excellent source for referrals. You can also ask your friends and associates if they're using someone. If they are, look to find out who and what those experts do for the fee involved. Refer to the yellow pages to get some names of local planners from the professional financial planner associations. Make an attempt with the National Association of Personal Financial Advisors, the Institute of Certified Financial Planners. All these sources will give you names of financial planners in your area.

Choosing Your Financial Planner

After finding some names the next step is to call and make an appointment. Normally the first hour is free because it is vital that you discuss what you want done. Prepare in advance and use that hour to your advantage. Ensure that you have your net worth statement, income statement, and your objectives in writing. Your financial planner needs that information so by having it ready in advance you'll be saving yourself some money spent on extra hours. Bring those materials to the appointment with you just in case you need them. Make sure you tell your potential financial planner what you need accomplished, and ask questions. Here are some tips to help keep you focused in your decision to use or reject the planner.

The Fee

How much will a financial planner charge in fees? How do they get paid? Get to know this in advance so that you won’t be in for a surprise. Usually, financial planners get paid by commission only, fee and commission, fee only, fee offset, or salary plus bonus/commission. Anything that involves a commission is obvious: You purchase something based on their recommendation and they'll collect a fee. The fee offset means they'll charge you an up-front fee, but any commission the planner earns is taken off from that fee. Which financial planner will provide you the most objective advice? Well, they all can, but those who have no vested interest in the decision you make to buy or not would make a better choice. If what they get is only a fee your financial planner might not get fully motivated to drive you towards a particular product.

The ADV Form

You should request for this from you financial planner. The ADV Form is what a financial planner files with the Securities and Exchange Commission to divulge his or her educational and business background, fees, and investment methodology. It will give you a wealth of information about the person. If they are not registered you should leave and do not under any circumstances do any business with them. Also ask for a copy of the Central Registration Depository (CRD) record. The CRD will provide you with a 10-year history of the person, including if any disciplinary actions had been taken.

Your Financial Planners Credentials

Look for the certifications on the wall and the initials after the name. It is true designations don't tell you whether the financial planner does good work, but what they do say is if he or she has extensive training and experience in the field. The sad fact is anybody can call him or her self a financial planner. There is no licensing requirement and very little regulation. But these impostors don't have and can't use these designations, so they become your seal of quality.

Your Financial Planners Experience

How long has the financial planner been in the business? The fact is longer the better. Why? Because this is an indication as to this person is doing something right. Have they done similar work in the past? If yes, ask for a sample of that work and get the names of three clients whom you can ask for references. The good ones will comply with that request.

Use these points to guide you in your search for a financial planner. You will eventually meet the right person who can do the job you want done. It might take a while, but will be worth it. When you need expert advice, you want to be convinced you have found a person capable of fulfilling your requirements, and one who will be acting in your best interests rather than their own.