Choosing a financial advisor or planner is not just about getting someone with CPA certification. Even those that have these qualifications may not always act in the best interest of the client. To ensure your advisor is qualified in finances and give impartial advice, there are factors you need to consider.
Factors to consider when selecting a financial planner
Credentials in financial planning like PFS and CFP usually confirm that the professional you plan to hire has the right education and experience to do your financial planning the right way. These certifications are only awarded to those who meet the requirements of experience as well as education in financial planning. These individuals also have per taking and pass the examinations and agree to abide by the practice standards and requirements. Ensure to go for certified financial planner.
All financial planners may not be able to serve all customer types. Financial planners usually specialize in certain customers with particular profiles. One financial planner may specialize in serving only specific professions or customers at a given stage of life, the net worth of financial goals. You should ask your planner whether they specialize in serving specific customers to know if they are fit for your financial goals and situation.
This factor will largely determine whose interest the financial planner will serve best. Fee-based professionals charge fees and earn commissions as well whereas fee-only professionals charge fees only for their advice. Other expenses like referrals are recommended when you choose a financial planner. Ensure that the advisor you settle for has a conflict free fee structure and benefits that are aligned with you.
The financial advisor you select should be available regularly, accessible to you and attentive. Get to know how many clients your planner is serving currently and the maximum number they plan to serve in future. This is a key factor in your planner accessibility and availability in future. You also need to ask what planning activities your planner will perform and make sure can be reached by phone or email easily during normal working hours.
Having unbiased and qualified financial planners is important in the journey towards achieving your financial goals. Professional credentials, specialization, and fee structure are the most important factors for selecting a financial planner. Consider these factors to help your choose the best financial planner who can help you plan your financial needs.