Fast Payday Loans Fast Payday Loans

Must-Haves for a Financial Planner

Wednesday, April 14th, 2010

With the ongoing recession, people all over America are steering towards finding recluse in financial planners who guarantee financial stability. Most, however, fail to grasp the importance of ensuring the planner suited for their requirements.

More often than naught, one will find cheeky sales men masked as experienced financial planners trying to palm off the first policy they get. One needs to ensure that a financial planner is more than just a sales person. The following points should be kept in mind while hiring a financial planner.

1. Check whether he / she is qualified: before signing any contract with a financial advisor check whether they are registered or have the required certificates. One may check online to see if they are registered with the Certified Financial Planner mark, the Chartered Financial Consultant or the Personal Financial Specialist labels. These are the only people whose advice one should consider. Even with these designations, some people may not have enough experience to handle the portfolio.
2. Honest financial planners are extremely serious about their work. Most sellers today, are out to sell investments. Instead of being concerned with creating the perfect plan for you, they are concerned with what they will earn out of it. Try to find a genuine person, who is dependable.
3. The planner should freely tell you how he or she is earning revenue. If you feel you need to ask directly – you may phrase it by saying you’d like to see a copy of his/her ADV form. This form needs to have been filled with the Securities and Exchange Commission and will give one a brief idea of the earnings structure of the agent.
4. One must check that the planner looks at the bigger picture of financial planning and not just the budget or earnings – but they must get a clear and apt picture of your current monetary condition.
5. Lastly, regardless of which products they are selling, if they have the relevant experience they should have an idea of all the products available in the market, and not just the ones they are selling. This would be great to help anyone understand what suits individual portfolios best, what are the requirements at the end of the term, and thus only if he or she is able to look at the broader picture- will this be possible.

There are smaller things that play pivotal roles in choosing a planner such as overall experience, integrity, what they are planning for themselves – their portfolios etc, however most of these are personal questions most people feel difficult to address. Do however keep in mind the above points- without those you are not fairly equipped to entrust yours or your family’s finances with another person.