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Your Financial Planner Checklist
When choosing a financial planner, it pays to be prepared and to ask questions. Here is a checklist of questions consumers can ask when considering a financial planner:
What experience do you have? Find out how long the planner has been in practice and the number and types of companies with which she or he has been associated. Choose a planner who has experience counseling individuals on their financial needs.
What are your qualifications? Ask the planner whether he or she is certified. Determine what steps the planner takes to stay current with changes in the financial planning field. Check on his or her background with the Certified Financial Planning Board or state agencies for complaints.What services do you offer? Some planners offer advice on a variety of topics, but don't sell financial products. Others may provide advice only in specific areas such as estate planning or on tax matters. Generally, planners cannot sell insurance or securities products (such as mutual funds or stocks) without proper licenses, or give investment advice unless registered with state or federal authorities.
How much do you charge and how will I pay for your services? Financial planners should clearly tell you, in writing, how they will be paid for their services. They can be paid in several ways, including a salary paid by the company for which the planner works; a fee-based payment on an hourly rate; a flat rate or a percentage of your assets and/or income; commissions paid by a third party from the products sold to you; or a combination of fees and commissions.
Have you ever been publicly disciplined for any unlawful or unethical actions? Check a planner's background at the Certified Financial Planner Board of Standards at (888) 237-6275 or at www.cfp.net; or the Securities and Exchange Commission at (202) 942-7040 or at www.sec.gov; or the North American Securities Administrators Association at (202) 737-0900 or www.nasaa.org; or the National Association of Securities Dealers Regulation at (800) 289-9999 or www.nasdr.com.
Source: Money & Work
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