Mark Johansson :Hi! I am Mark Johansson and I am a member of the Financial Planning Association. I am here to discuss choosing a financial planner. Right now, I am going to talk about how to search for a financial planner and how to choose the right one.
To begin your search, ask for names from friends or business associates who may have used a financial planner. Attorneys, accountants, insurance agents, bankers and other financial specialists can also be good sources because planners often work with them to carry out the client's financial plan. The Financial Planning Association maintains a thorough database of financial planning professionals in your area. You can visit www.
org or call our toll free hotline at 8006476340 to find a planner in your area. You want to be careful, so you may also want to check what the Securities and Exchange Commission, appropriate state agencies and your local better business bureau to determine if complaints have been filed against the planner you may be considering. If you seek professional help with your financial planning or they offer you the few tips to help you find someone is right for you. Look for competence through a speciality designation that includes experience, ethics, education and examination. Talk to several planners to find one that fits your specific needs and gives you the most confidence and comfort. Ask for a registration or disclosure statement that details a planner's experience, education, compensation method and potential conflicts of interest. Choosing a financial planner is as important as choosing a doctor or a lawyer. Working with a financial planner is a very personal relationship. In addition to competency, a financial planner should have integrity, trust and a commitment to ethical behavior and high professional standards. You want a planner who will point your needs and best interest first. Also many planners specialize in working with certain types of clients such as small business owners, executives or retirees. Many have minimum income and asset requirements. Some specialize in certain areas of planning such as retirement, divorce or asset management. You should interview at least three planners in person to find the right one to serve your needs.
Here are some things you should know about your financial planner. Financial planning and other financial designations the planner holds. Educational background and work experience, services the planner provides, the planner's basic approach to financial planning, areas of specialization, types of client the planner serves in any minimum net worth or income requirements. Have the planner prepare some plan. Have a planner who might address your particular needs. Whether the planner or others will implements the recommendations from the plan. Licenses to sell certain financial products such as securities or life insurance. Business relationships the planner has that might present the conflict of interest.
How the planner is paid for services and the typical charges. Professional affiliation including membership in the financial planning association. Face to face interview also should give you a personal sense about the planner. Does the person seem forthright in their answers. Do you have a sense of trust and rapport? Is the person focused on your needs and not just selling products? So that's how to choose the right financial planner. Up next, I am going to discuss why full disclosure is important with the financial planner.