Tips On Choosing A Financial Planner

We are pleased to provide you with the following Tips on Choosing a Financial Planner. Finding the right financial planner requires hard work. We encourage you to interview a number of planners and to re-assess your relationship on a regular basis.

• Know what you want: Determine your general financial goals and/or specific needs (insurance policy analysis, estate planning, investments education, etc.).

• Be prepared: Read the newspapers and finance publications to maximize your familiarity with financial planning strategies and terminology.
• Talk to others: Get referrals from advisors you trust, from colleagues and friends. Or contact FPSC for a referral to a professional financial planner.
• 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 licensee who has met high standards of financial planning professionalism and abides by Code of Ethics.
• Interview more than one planner: Ask them to describe 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.
• Check the planner's background: Depending on his background, call his professional associations to check on his complaint record or call FPSC to see if he is a CFP licensee in good standing.
• 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.
• Know what to expect: Ask for a registration or disclosure document detailing method of compensation, conflicts of interest, business affiliations and personal qualifications.
• 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.
• 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.

 

The CFP Exam leading to the CFP designation tests candidates' knowledge of financial planning, ethics, investment planning, tax planning, insurance planning, income tax planning, retirement planning and employee benefits. See CFP Exam Syllabus for more details.