Various Things that You Need to Consider in Choosing a Financial Planner
Unlike someone who is calling himself a doctor or CPA, anyone may call himself a financial planner or probably a financial advisor, regardless of one’s educational background and the professional experience. Moreover, not all are actually unbiased in their advice and not all would act in their client’s best interest. To be sure that your financial planner is qualified when it comes to personal finances and also impartial in his or her advice, then these are the things which you should consider.
You need to ensure that one comes with financial planning credentials. Having that highly-regarded credential in such financial planning, like such certified financial planner or such personal financial specialist, would actually confirm that this professional that you intend to work with has surely acquired the education and experience needed for serving as a financial planner. CFP and PFS credentials are surely awarded to those people who have met the certification requirements of education and the experience in planning for the client’s personal finances. Aside from this, they have to pass such certification exams and also must adhere to the practice standards and also the continuing education requirements.
The financial planners are also planning professionals but don’t need to be subject matter experts. For instance, the financial planner may be skilled in such tax analysis as well as planning but compared to the CPA or the EA, one might not have to be an expert in the subject matter when it comes to those tax rules. One may also have the skills in chalking such investment plan but unlike that Chartered Financial Analyst, one may actually not be an expert in the subject of investment. You need to make sure that you actually work with such financial planner who is really an expert in such subject matter particularly in the personal finance that is quite important for you in order to attain the financial goals.
You have to make sure that you also check the fee structure. This would highly determine whose interests really serve best, if it is of the client or one’s own. The fee-only professional would charge fees for the advice but such fee-based professional doesn’t just charge fees but earns some commissions, the financial incentives and referral fees on the solutions and products which they actually recommend for you. Such advice from that fee-only professional is more likely to be unbiased and also in your most fantastic interests as compared to the advice from that fee-based financial planner. Make sure that you are working with the professional which has a conflict-free fee structure and aligned to the benefit you want to enjoy.