How to Select a Certified Financial Planner

A certified financial planner can assist you with a variety of money management needs, from retirement planning to personal investments. But selecting the right financial professional involves more than just a personality match. You also need someone who has experience with clients similar to you and possesses a deep knowledge base to properly advise you on financial matters.

Instructions

1. Choose several different planners to interview. Among those that you plan to talk to, make sure they are all varied in terms of experience and planning style. This is the best way to find the financial planner who's best for your situation. Set times to interview your top choices and take your time in your assessment of each.

2. Request official verification of certification. A certified financial planner means the person has had extensive education and testing to pass certification requirements. This gives the planner credibility, both in the industry overall and among potential clients.

3. Ask questions about the planner's experience. Be specific and inquire about how long she has been in business. Ask about her experience with individuals in your financial situation and how she would handle your particular account. The more you can gauge her experience, the better you can assess how comfortable you feel with her advice about your financial portfolio.

4. Inquire about the services offered by the planner. You may need someone to advise you on retirement matters, but if your financial planner does not offer this service, his services overall will not be as valuable to you. Ask for a written list of services from the planner and consider your needs in comparison.

5. Find out how the planner will be paid. Some planners require you to pay a set fee for their services, as they not only recommend certain products but also advise you on how to use them. Others are commission-based and get paid based on the products you purchase based on their recommendations. There are pros and cons to each method. Decide if you are comfortable paying for advice even if you never purchase a product or service, or whether you can deal with a commission-based professional whose paycheck depends on your willingness to buy certain services. The key is knowing upfront, so you are clear about how and when you are expected to pay the planner.

6. Request client references. References will give you a good idea of well deserved a planner's reputation really is. Talk to past and current clients about how happy they were with the level of service the planner provided and how well her direction and advice worked for them. Financial information is sensitive, so you can't be specific. But get a general idea of how happy her clients are, which will help you decide whether to hire the planner.

References

• Certified Financial Planner Board of Standards: How to Choose a Planner