Tag Archives: financial planner

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Guide to Choosing the Best Financial Planner

Hiring the services of a financial planner comes with numerous benefits, including getting fiscal discipline, making the right investments, and gaining confidence in your financial future, among others. All those benefits, however, can only be realized if you hire the Best Financial Planners. Numerous individuals are marketing themselves as financial planners, which can make it quite challenging to choose the most suitable one for your needs. A few of the factors that you should put into consideration to help you make the right choice are highlighted below.

Experience

The number of years that the financial planner has been in the space matters quite a lot. The more experienced he is, the more likely he is to offer better services. That is because he is likely to have seen and dealt with financial issues similar to yours. The experience will allow him or her to help you overcome the problems quickly as he will already know the right solution from experience. You will not have to go through a trial and error phase when your money, and probably financial future, is at stake.

Fees Charged

You will have to part with some money as fees for the services you receive from your financial planner. The amount of money usually varies for different financial advisors. For that reason, your budget will limit you to the options that you can afford. However, the fees charged are usually a reflection of the quality of service that you can expect to receive. For that reason, avoid hiring the services of a financial planner who charges unusually low fees. Also, avoid those who charge based on commissions.

Fiduciary

You should also look for fiduciary, meaning that you should choose a financial advisor who pledges to always act in your best interest. With such a planner, you will be able to trust the advice you receive from them as it will not be focused on them making money for themselves. Alongside that, you can consider personality as well. Choose someone who you can get along with very easily.

Background Check

Before you hire a financial planner, run a background check to find out everything that you can about his past. For example, check whether he has ever been convicted for fraud or any crime. Has an investment-industry group or regulatory body ever investigated him? If you find anything suspicious when doing the background check, continue looking for a better option.

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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.