Financial Planning Association

7 Steps To Find A Financial Planner

Are you worried about your finances, investments and insurance? You have to navigate you money in the direction from where you are able to earn some revenues and where you money is secure. A Financial Planner is the right person to guide your way. Contact a planner and put you money in the right direction. Who will be you financial planner is a question to ponder about. Any one can call himself a planner, so, beware and choose your planner rationally.

You may follow these steps and reach out to an unbiased planner.

1. As the first step towards finding a financial planner, you must have a clear idea as to why you need the help of a financial planner. All planners don't offer comprehensive services. Most of the financial planners either offer advice on insurance or taxes. You have to be clear with your goals and objectives.

2. Then you must start looking for recommendations. You must talk to friends and relatives. They might be able to give you a list of financial advisers they have dealt with. Before you appoint an adviser interview some advisers and choose the one who understands your equations.

3. After having spoken to them you must find the credentials of the planner. You should get in touch with groups like Certified Financial Planner Board of Standards and Financial Planning Association and obtain a list of financial planner credentials. Certified planners have qualified examinations and others may have experience in working fields of investments and insurance. At this point you also need to find out if the planner's track record is stained by complaints. Groups that award credentials or state agencies keep check on planners and can provide help. Tracking records and talking to people is not a waste of time. The time wasted would be worth if you are able to find the right person.

4. Discuss about your desires and requirements with the planner. Tell him all that you feel should be done with your money. The money belongs to you and you have all the rights to clarify your doubts. Try to figure out if the planner is able to map out a plan that fits your needs. An experienced and enthusiastic planner would ask many types of questions to you about your finances, goals, risk tolerance etc. If the planner does not ask such questions then probably he/she is not much interested in the task and if you don't answer that means you are making work difficult for the planner. So be as specific as possible while talking to the planner.

5. The planner would obviously charge some compensation from you. Clarify his payment details, some planners charge a fixed fee for services rendered others may work on commission basis and yet others may be fee based. Fee-based planners may receive commission on some products they sell, but most of their money generates from a fee you pay them. Commission-based planners are paid by the companies whose products they sell. If you are impressed with some planner then don't forgo him just because of the reimbursement. Negotiate with the planner and come to a viable consensus.

6. I would recommend you to ask the planner to give you references of his customers whose needs were similar to yours and who have been satisfied with the planner's work.

7. Talk and find out what financial products a planner sells and how much he or his firm earns for making a sale. Be cautious of planners who try to sell a particular product to you. You need a planner who gives you unbiased opinions and advice for your finances.

(This information is for informational purposes only and is not a tax or legal advice. Please consult a qualified tax adviser, CPA, financial planner or investment manager.)

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