Just like some people give themselves the titles of physicians and CPA, some individuals can call themselves financial planners regardless of their background and professional experience. In addition to that, not all of the planners may work to benefit their clients. Some individuals are out here to benefit themselves. The issue of personal finances is crucial and that is why individuals should consider the following factors before hiring a financial planner.
Tips for choosing a financial planner
Financial planners are expected to have highly regarded credentials like Certified Financial Planner(CFP) to acknowledge that they can do the professional jobs their clients expect from them. The credentials also show that they have the knowledge and experience required for the nature of their jobs. This is because these credentials are only awarded to individuals who have met the requirements of the board by undertaking several projects and examinations. Therefore, for them to be awarded, they must have satisfied the board.
Most planners have a specialty. They do not work with all clients. They mostly work with certain clients with specific profiles. For instance, a planner may work with individuals who are in a particular stage in their lives with a specific financial goal. Others may work with individuals in a specific profession and they will not work with individuals from other professions. Therefore before hiring one, it is important to inquire if they can work with you to suit your needs.
The fee structure of a financial planner is a huge indicator of whose interests the planner has. There are two ways in which they charge. There are fee only professionals who charge just for their advice. On the other hand, there are fee based professionals who not only get paid based on the advice, but they also earn commissions, incentives from the products and solutions they recommend, and referral fees among others. A fee only professional is highly recommended.
Availability of the financial planner
Before hiring a planner, ensure that they are readily available and that they are accessible to you.Ensure that you ask them how many clients they are dealing with because that will give you an insight on what to expect from them. It is key when it comes to assessing their availability.It is also your right to know which duties they perform solely and which ones they delegate. Last but not least, ensure that during normal business hours, you can easily reach them via their phones or their active email addresses.