Financial Planner Advisor
A financial planner advisor can help you analyze your current financial situation, define your financial goals, develop a specific plan to achieve those goals and implement the plan.
Financial planning firms assume the responsibility of coordinating your financial affairs - balancing your investments, managing your taxes, planning for retirement, planning your estate and above all, protecting your assets.
What a financial planner will require of you is that you take an inventory of your assets and gather every conceivable kind of financial paper you have.
Once you've provided the necessary information, a planner will analyze your financial profile and issue a comprehensive plan for achieving your major financial objectives.
You should receive periodic reports of your financial condition to help you adjust your decisions over time. With a good financial planner, there is no such thing as "one size fits all." A quality planning firm will help you develop the perspective needed to make intelligent financial choices.
You will need to find out how much the services are going to cost. On what basis is the planner compensated? Hourly fee? Commissions on financial products sold? Or a combination of the two. The advice of a fee-only planner is generally free from any conflict of interest.
When working with a commission-compensated planner, make sure that a variety of financial instruments and products is being offered and not just the ones on which the planner stands to make the largest commission.
Interviewing Financial Planners
Over the past several years, it seems like everyone has become a "financial planner." That makes your search more difficult in choosing a good and reliable one. You should always look for a advisor with professional expertise and credentials that identify them as specialist in financial planning.
When interviewing a prospective financial planner, make sure to cover these vital points:
- Experience. Three year's track record as a professional financial planner should be considered a minimum. A related background in brokerage, accounting, insurance etc., is a plus.
- Credentials. CFP (Certified Financial Planner), Chartered Financial Analyst (CFA) and Chartered Financial Consultant (ChFC) credentials indicate extensive education.
- Support. Make sure your planner has full adequate support staff. A solo practitioner is at a distinct disadvantage. Many planners are teaming up to offer broader and better service.
- Clients. How many and what type? Favor a planner who has clients like you. Find out how many of the planner's clients renew every year. A 75% client-renewel rate is minimum.
- Reviews. Are ongoing reviews provided to make the plan current? How does the planner keep clients up-to-date?
- Fees. Ask about fees. Personalized plans are usually at least $1,500. Fees can go up to many times this figure.
- Trust. Be sure you are comfortable with this person. Trust is an essential factor in producing meaningful results.
Financial Planning
Financial planning is the road map to financial security. Do your research before you hire a financial advisor so are confident that your money is being handled in accordance with your financial goals.
