- A financial planner will assess the client on both an asset and a lifestyle basis and help him devise a realistic plan for achieving his goals. Then the financial planner will assist the client each step of the way in implementing those goals.
- Financial planners can serve a variety of roles. Some specialize in fashioning a financial plan that is tailored to the client's goals without providing help in acquiring specific types of assets. Other financial planners specialize in areas like life insurance, real estate or stocks and bonds, and earn commissions for the sale of those products.
- Before choosing a financial planner, prospective clients should determine their financial goals. For example, if a client simply needs an overall assessment of the current financial situation and help with a plan for the future, the client should look for a financial planner who has a good grasp of long-term investments and various retirement plans. On the other hand, if a client has a plan in mind but needs help in managing assets, the client should look for a financial planner who is well-versed in the stock market and various financial instruments.
- The most appropriate time to engage the services of a financial planner is when planning for retirement. A plan should be developed, then executed, that will provide the greatest amount of security during retirement, making sure that the client's assets are positioned properly according to that plan. Also triggering the need for help might be a sizable inheritance or the early accumulation of wealth, as massive amounts of money will require careful management.
- Typically, a financial planner uses goes through a process that starts with gathering and analyzing the client's relevant information from which long-term goals could be set. Then the financial planner will develop a plan to reach those long-term goals, and help the client make changes to the plan over time, if warranted.
