Tag Archives: financial planner

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What To Consider When Choosing A Financial Planner

Unlike someone calling himself or herself a physician, or engineer, anyone can give himself or herself a title of “financial advisor” or “financial planner” no matter the professional experience or educational background. Moreover, very few of them offer unbiased advice and act in the best interests of their clients. You can visit our site to learn more. To choose the right personal financial advisor and planner, there is a need to consider the following things:

Planning credentials

Having highly-regarded credentials in the financial industry, like Personal Financial Specialist (PFS) or Certified Financial Planner (CFP). These credentials are a proof that the person you hire gas acquired relevant education and experience to serve as your financial advisor. PFS and CFP certifications are awarded to persons that have met the required experience and education in planning personal finances. Moreover, they are required to pass relevant certification examinations and adhere to practice standards and the education requirements.

Subject matter expertise

You should note that financial advisors are planning professionals. They do not have to be experts. For instance, you can find a financial planner that is skilled in tax planning and analysis. Unlike an EA or CPA, he may not be an expert in tax rules. Also, he or she can be skilled in analyzing investment plans, but unlike CFA, he or she may have not mastered the subject of investments. It is necessary to work with a reputable financial planner who can help you achieve your financial goals.

Client specialization

You should note that not all financial advisors serve all types of clients. The majority of them specialize in serving certain clients with certain profiles. For instance, personal planners can build their expertise by serving a given group of clients, in certain industries or with particular financial goals. You should ask whether the advisor specializes in serving a given type of clients where you fit. This will help you know whether you have found the right for your financial goals and situation.

Fee structure

This determines the interests the financial advisor serves – his own or client. There are two types of financial planners as far as fee structure is concerned: fee-based and fee-only. The latter charge on the fees for the services offered whereas fee-based professionals charge a given fee plus commissions.

Availability

You need a financial planner that is attentive, accessible, and available to you. You should ask the client the number of clients he or she is planning currently or in the near future.