Finding A Financial Planner
And Getting A Good One

Whether you’ve decided to finally go for it, or are helping a loved one, or have decided to change the financial planner you currently have, you know you need to get someone good – qualified and experienced.

There are a few questions you need to consider yourself, and questions to ask a potential financial planner. We’ve listed many of them below. Your questions, of course, will depend on your needs and goals. As you review these, you will undoubtedly have other questions of your own.

• What is your primary purpose of finding a financial planner at this time – is it an immediate need, is it something specific, are you looking for general overall financial planning, is it for you, or for a loved one, etc.
• What is the net worth that you are working with
• How many people (such as family members) are going to be involved in this financial planning process
• Is there urgency or a time line in finding a financial planner now
• What do you need help with – estate planning, retirement planning, insurance options, end of life planning, etc.
• What are your financial goals, short term
• What are your financial goals in the future – 1 year, 5 years, 10 years, etc.
• How much participation do you intend to have in the ongoing financial planning
• What is your risk tolerance – are you cautious or aggressive (if you’re not sure, finding a financial planner should include discussing this)

• Do they require a minimum net worth
• What are their educational qualifications and certifications (both college degrees and other certifications)
• What designations to they have – CFP, CPA, PFS, legal, etc.
• What organizations or groups are they regulated by – you can then do a background check – also see paragraphs below
• Do they complete ongoing, continuing education for their designation(s) to stay current
• What licenses do they hold (i.e., insurance, securities, legal, etc.)
• Are they licensed and/or registered within your state and federal government (these requirements will differ, depending on the service or product provided)
• Can they provide you with proof – they should have the appropriate disclosure form
• What are their services and areas of expertise
• How many years of experience do they have in these areas
• Do they have experience in doing actual financial counseling
• Have they ever received any public disciplinary action for unethical practices or had their license revoked at any time
• How many years have they been with their current firm, or how long have they been practicing on their own
• How many clients do they have
• Do they work with just one company (i.e. an umbrella corporation, financial institution or insurance company that offers many services or products)
• Or do they work with a variety of companies (i.e. as does a broker)
• Regarding charges – do they charge flat fees, are they salaried, commissioned, or a combination of these
• Are they going to refer you to other professionals or agents – will there be third parties involved
• If so, do they get referral fees or commissions for referring you to them
• What are the fees or charges (rates per hour, flat fees, or percentage of commission for services and products they sell to you) – make sure you get this in writing and that it is very clear to you
• Does their approach match yours – are they conservative, aggressive, or can work with either approach
• Are they qualified to help you determine the best approach for you, should you not be sure yourself
• Is this person the person that will be working with you on an ongoing basis. Or will another professional be assigned or involved (make sure you meet everyone)
• How will they carry out the agreed-upon plan, and how does reporting occur
• What is their method of communicating with you and how often
• Ask to see a sample of a typical client agreement
• Make sure you obtain all information and proposed plan in writing and have a thorough understanding of all of the above, plus any more questions you may have, before you sign any agreement or contract
• Obviously keep copies all documents for your file

You can check their background -- this can be an important part in finding a financial planner. This is not a difficult process if he/she is a certified and licensed financial planner. (Although it does take some time). Disciplinary action is a matter of public record. Your state will have an insurance and securities department, and CFP board. You can also contact the National Associationof Securities Dealers (NASD), or Securities and Exchange Commission. If you have asked what organizations they are regulated by, check with those organizations.

Make sure to also read these related pages:
Saving For Retirement - Even If You Think You Can't -- Saving for retirement - yeah, sure. Good intentions. But are you really doing it. And how?
Paying Off Debt -- Debt collections can be a very scary world. Learn why there is more to paying off debt than you may ever imagine!
Elder Estate Planning -- Elder estate planning can seem very complicated. But you can learn the easy basics here.
Debt Collection Laws -- If you know someone who has debt or is in collections, you must read these important facts on scams, harassment, and what collectors can and cannot do and say -- by law.

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