No matter your financial goals, consulting with a financial planner can help just about everybody. They will help you refine your goals and guide you through creating strategies for your money and keep you accountable to your plan. They’ll also help you steer through different saving and investment strategies until you know your money is working for you.
They’ll also ensure you have all the information needed to make the right financial decisions for your circumstances, so you can grow your wealth and increase your financial security.
If you’re looking for a financial planner, these tips can help you find the perfect person to meet your specific needs.
Be clear about your goals
Most people’s big financial goals fall into the following areas:
- Retirement
- Buying a home
- Paying for higher education (for themselves or their dependents)
But along the way, many other scenarios can come up that pull our financial focus, such as covering expensive home repairs, buying a car, or paying for a trip. Whether your goal is to build up an emergency savings account, pay for the adventure of a lifetime, or fund your retirement, a financial planner can help you apportion your money wisely.
Before you start searching for a financial planner, list your long-term and short-term financial goals. This will give you the framework for finding someone whose expertise matches your goals.
Check their qualifications
There’s no shortage of financial planners to pick from, but not every planner is licensed or has the proper experience, training or credentials to meet your needs.
With your objectives in mind, start researching financial planners around your area with relevant and appropriate qualifications. Check online for any complaint records against them or information that challenges their claims. Where you find the complaint record may depend on the government body that oversees their work.
Ask your family and friends for referrals, ideally, people you trust who are in the same stage of life as you. Visit each website and look for testimonials from people with similar circumstances. Double-check with the appropriate certifying body that they have the required qualifications.
Ask questions
Make a list of potentials and interview at least three financial planners. Ask what qualifications they have, what their approach is, what services they include, and how they can help you achieve your goals.
Additionally, inquire about
- what products they offer (and ensure they have the proper certifications to sell them),
- how they will keep you updated,
- how they decide on appropriate investments or strategies for their clients,
- whether they’ve ever been disciplined by a regulator (again, you can often verify their answer online), and
- how they’ve helped clients in situations similar to yours.
Find out their payment structure
Financial planners may charge you in a variety of ways, including:
- Hourly fees
- A fee based on the value of your assets under their management
- A commission or trading fee based on buying stock or investments for you
- A salary from their employer (such as those who work through banks)
- Statement of Advice fee, a one-off fee for preparing your Statement of Advice.
Fees are either paid up-front and deducted from your investments or added to ongoing fees for service.
You need to know how they’re paid and what they charge so you can determine if outside factors in any way influence their advice.
Final thoughts
Whether you need help with investment planning, estate planning, retirement planning or other financial guidance, choosing the right financial planner is vital to taking control of your finances. You want someone who understands your financial goals, is experienced in the areas you want guidance, and who you feel comfortable talking openly with.
If you have any questions, feel free to Join the conversation…