Be Good To Your Money Bulletin http://ezezine.com
10 THINGS YOU SHOULD KNOW BEFORE HIRING A FINANCIAL PLANNER
1. ANYONE CAN CALL HIMSELF A PLANNER.
To avoid amateurs, hire a planner who's earned special credentials
(such as a Certified Financial Planner or Personal Financial Specialist
designation) by meeting training standards or having a certain level of
experience.
2. PLANNING IS MORE THAN INVESTING.
Not all planners offer comprehensive services. Some just give
investment advice or focus on one aspect of planning, such as insurance
or taxes.
3. EXPAND YOUR CHOICES.
When hiring a planner, interview at least three pros to find the one
who can deliver the services you need and who's compatible with your
style.
4. PERSONAL REFERENCES ARE A GOOD PLACE TO START.
A reference from a friend or family member is a great way to search for
a financial planner. But make sure you've got similar needs as the
person who's giving the referral. Go to groups like the Certified
Financial Planner Board of Standards and the Financial Planning
Association for additional references.
5. UNDERSTAND HOW YOUR PLANNER IS GETTING PAID.
The three most common set-ups are: Fee-only, fee-based, and
commission-based. Fee-only planners don't get commissions for the
products they sell - fees are for the advice they give. Fee-based
planners may receive commission on some products they sell, but most of
their money comes from a fee you pay them. Commission-based planners
are paid by the companies whose products they sell.
6. CHECK CREDENTIALS.
Check to see if a planner's record is tarnished by disciplinary
problems or complaints. Groups that award credentials or state agencies
keep tabs on planners and can provide help.
7. GET REFERENCES.
Ask a planner for two or more of his clients - then follow up and call
to find out how a planner performs in specific circumstances, such as
during a financial crisis.
8. ASK QUESTIONS.
The quality of a planner's advice is largely dependent on how well he
or she knows you. Make sure a planner asks questions about your
finances, goals, risk tolerance and philosophy. If they don't ask, they
probably aren't paying adequate attention.
9. ASK ABOUT ALL OF THEIR PRODUCTS.
Be wary of planners who push one product - say, one family of mutual
funds or one kind of insurance - as they may not give you the unbiased
or comprehensive advice you need.
10. KNOW YOURSELF.
The best planner will take his cues from you. Before you hire someone,
identify the financial goals you want to meet, your assets and
liabilities, your risk tolerance, and investment style. Are you
self-directed or do you want specialized help?
This is your money and you must protect it!
www.LisaFrye.com
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