What To Look For In A Financial Planner

Your planner should be someone who’s qualified and experienced in providing the sort of services you are looking for. They should be someone you feel personally comfortable in dealing with and whom you feel is trustworthy and credible - consider this person as a long-term business partner. Expect to interview more than one candidate. Before meeting with a prospect gather all relevant financial data and documentation and be prepared to discuss your personal financial profile at length.

Here are some questions to help you through this evaluation process:

Experience and Qualifications:

• How long has the planner been in practice?

• Does he/she have clients whose situation is similar to your own?

• Do they have an area of specialization?

• Does the planner have a recognized professional designation?

Services:

Your planner should be prepared to provide a description of these services in writing if you so request:

• What services does the planner specifically render?

• Are they licensed to sell financial products, insurance or investments - stocks, bonds or mutual funds?

• On what range of financial issues do they offer planning advice?

• Will you be working directly and primarily with this person or will an associate or subordinate be assigned to your account?

You will want to personally meet and interview the person you will be primarily working with if it is not the planner.

Compensation: How and How Much?

Financial planners are compensated in basically 3 ways:

a) a Fee-Only arrangement, the fee in question being hourly or flat rate or a certain percentage of the assets under management,

b) on a commission basis, the commission from the products sold to you arising from the execution of your financial plan, or

c) or combination of fees and commissions, also referred to as a Fee-Based arrangement.

In any case your planner should be able to give you a good estimate of the costs both of the creation of your financial plan and of its on-going management.

References

As you would in any hiring situation, ask for references. Your planner should be able to readily give the names of clients similar to you in situation and objectives.