Various Things that You Need to Consider in Choosing a Financial Planner
Unlike a person who calls himself an accountant or physician, just any person may call himself a financial planner or probably a financial advisor, whatever is the person’s educational background and professional experience. Also, not all are unbiased in their advice and also not all of them definitely act in the best interests of their clients. For you to be sure that the financial planner is really qualified in personal finances and impartial in his or her advice, then such are the essential things that you must consider.
You need to ensure that one comes with financial planning credentials. Having that highly-regarded credential in such financial planning, like such certified financial planner or such personal financial specialist, would actually confirm that this professional that you intend to work with has surely acquired the education and experience needed for serving as a financial planner. The PFS and CFP credentials are actually awarded to only the individuals who have certainly met such certification requirements of education as well as experience in planning for one’s personal finances. Aside from this, they have to pass such certification exams and also must adhere to the practice standards and also the continuing education requirements.
The financial planners are also planning professionals but don’t need to be subject matter experts. For instance, the financial planner may be skilled in such tax analysis as well as planning but compared to the CPA or the EA, one might not have to be an expert in the subject matter when it comes to those tax rules. One may also have the skills in chalking such investment plan but unlike that Chartered Financial Analyst, one may actually not be an expert in the subject of investment. It is important to make sure that you work with such financial planner who is really an expert in such subject matter specifically in the areas of personal finance that is quite important for you to achieve those financial goals.
Also, it is very important that you must go through the fee structure. Such would greatly determine whose interests actually serve best, if such is of the client or your own. A fee-only professional would surely charge fees for such advice but this fee-based professional not only charges fees but would receive financial incentives, referral fees and commissions fro the solutions as well as products that they recommend. The advice obtained from that fee-only professional is not biased and this is in your best interest unlike the advice given by the fee-based financial planner. You should work with a professional with a fee structure that is conflict-free and also aligned to your benefit.