How to
Choose the Right Financial Planner
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How to Choose the Right Financial Planner
Selecting the right planner for your needs is important - it’s best
not to leave anything to chance. Don’t just assume that a referral
from a friend or family member will meet your needs. Do your homework. In
order to find someone who is competent, trustworthy and a good match for
you, do your homework. Research, interview and compare several planners
before making your decision.
Here are 10 questions you should
have answers to before you make your choice. (Click
on the question to view the answer)
- What experience do you have?
Few things are as valuable as experience. Ask how long they have practiced
comprehensive financial planning, not just selling life insurance,
acting as a stockbroker, or preparing taxes.
- What are your qualifications?
Qualifications can show commitment and specialized training that can
be invaluable to a client.
- What services do you offer?
Does this planner offer all of the services necessary to complete
your plan or is the planner primarily a seller of insurance or securities
products? As the saying goes, "If the only tool you have is a
hammer, every problem looks like a nail!"
- What is your approach to financial planning?
If your thoughts about financial planning do not match your planner's
views, you may not be a good match. Remember, financial planning is
a long-term process, make sure you choose someone you can work with
for years to come.
- Will you be the only person working with me?
Does the planner employ a team approach, or is he or she a sole practitioner?
If staff or assistants will interact with you, find out when you can
meet them.
- How will I pay for your services?
Another important question. We frequently meet with people whose previous
financial professional claimed to be paid by the mutual fund or insurance
company, and that the client did not have to pay anything. No one
works for free, so make sure all compensation is fully disclosed.
- How much do you typically charge?
the compensation disclosure. How much? How often? When is it paid?
Are there sales/withdrawal penalties?
- Could anyone besides me, your client, benefit
from your recommendations?
Are your recommendations part of a sales quota or contest? Are your
recommendations "house" products that are managed or created
by your company?
- Have you ever been publicly disciplined for
any unlawful or unethical act in your professional career?
- Can I have it in writing?
All claims, recommendations, and plans should be provided in writing
for your review. If there are any suggestions that you need to act
immediately, or if any pressure tactics are used, it should cause
concern. Hurrying the creation of a prudent, long-term financial plan
can be detrimental to its success.
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