Various Things that You Need to Consider in Choosing a Financial Planner
Unlike someone who is calling himself a doctor or CPA, anyone may call himself a financial planner or probably a financial advisor, regardless of one’s educational background and the professional experience. Moreover, not all are actually unbiased in their advice and not all would act in their client’s best interest. To be sure that your financial planner is qualified when it comes to personal finances and also impartial in his or her advice, then these are the things which you should consider.
Make sure that one has the financial planning credentials. Getting that credential in financial planning, like the certified financial planner or a personal advisor or financial specialist would confirm that such professional that you intend to work with has surely acquired the education and also the experience needed for serving as a financial planner. CFP and PFS credentials are surely awarded to those people who have met the certification requirements of education and the experience in planning for the client’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 example, a financial planner may have the skill in the tax analysis and planning but unlike the EA or the CPA, one may actually not be an expert on the tax rules. In the same way, he could also be skilled in chalking that investment plan but as compared to that Chartered Financial Analyst, one may not be an expert in the investments subject. You need to make sure that you actually work with such financial planner who is really an expert in such subject matter particularly in the personal finance that is quite important for you in order to attain the financial goals.
It is also very important that you check out the fee structure. This is going to determine the interest rates that serve best. The fee-only professional would charge fees for the advice but such fee-based professional doesn’t just charge fees but earns some commissions, the financial incentives and referral fees on the solutions and products which they actually recommend for you. Such advice from that fee-only professional is more likely to be unbiased and also in your most fantastic interests as compared to the advice from that fee-based financial planner. You should work with a professional with a fee structure that is conflict-free and also aligned to your benefit.