How to Find a Qualified Financial Planner
Preparing your financial future requires careful planning to steer the journey from your current financial position to your set financial goals. For the greatest chance of success along this financial path, you may need the aid of a qualified financial planner. The financial planning industry is a wide-open one where anyone who desires to do so may call themselves a financial planner. This makes it difficult to separate those who are truly qualified to help you along your financial way from those who are either incompetent or quick to separate you from your money. You can find someone qualified however, but it will take a bit of careful legwork and research to do so.
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Instructions
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Ask around for references from friends or family members. Contact national organizations that qualify financial planners for candidates in your area as well. Organizations you can contact include the National Association of Personal Financial Advisors, the Certified Financial Planner Board of Standards and The American Institute of Certified Public Accountants.
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Check the credentials of your candidates for skills and history spanning a wide range of financial matters. Remove those from your list who are involved primarily in sales. Look for a planner who has the Certified Financial Planner designation. Requirements for the CFP include a financial education, examination, and experience prerequisite. A CFP is also registered with the SEC or his individual state as an investment advisor, and as such he held to specific codes of ethics and behaviors, complete with oversight.
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Ask the planners under consideration how they earn their fees. Choose a planner with either a fixed fee, or a fee that's based on assets under management. Commission-based planners earn based on the number of transactions you make, which can be more expensive than other fee methods and may pose a conflict of interest. Make sure you know how much the fee will be before choosing one to ensure the rate is within your budget.
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Check with the state's securities agency to make sure the planners on your list are licensed. Check for complaints filed against any planners on your list. Keep in mind that a complaint is not necessarily a proof of misconduct, but the number and severity of complaints can serve as a warning sign for a particular planner. Contact the Certified Financial Planner Board of Standards for complaints against planners with the CFP designation and any action taken against them as a result.
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Narrow down your candidate list to three potential planners. Arrange a meeting with each to interview them. Ask about the planner's techniques and past performance with clients. Question them about how they intend to help you achieve your financial goals, whether those goals include financial growth, retirement planning or wealth management. Request references from their current clients and speak to the references after the interview to verify the planner's claims.
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Choose a financial planner that you're comfortable with, one who can help you meet your financial goals at a rate you can afford.
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