How to Hire a Financial Planner


While saving money is considered by many as difficult, doing it on your own makes it a burden. However, if you have a financial planner to guide you, meeting your financial goals becomes easier. Financial planners are a dime a dozen these days, so it helps if you know what to look for so you would end up with one of the best.

Determine if the financial planner is fee-based, commission-based, or fee-based with a commission. A financial planner with a fee-based practice earns commissions on the financial products that he sells to his clients. Several planners compensate for the commissions earned against a flat fee. There are also others who purely work on commissions. Some financial professionals either charge a fixed amount or an hourly fee.

When the fee structure has been drawn, ask the financial planner about the minimum investment amount, if he has any. Some planners prefer their clients to have a minimum before working with them.

When you are agreeable with the minimum amount that the financial planner requires, set up a series of meetings with him to gauge if you are comfortable with each other. You can also use this time to know more about your financial planner. You should expect to meet more than one likely candidate. Before meeting with a prospective financial planner, you should have relevant financial data and documentation to help you discuss your personal financial profile at length.

Once you are entirely convinced that the financial planner is just right for you, you should be offered with certain services. Your financial planner should evaluate your current financial situation by reviewing the last two tax returns, all your sources of your income, liquid and illiquid assets, insurance policies, wills, and estate and retirement planning documents. Your financial planner should also be able to pinpoint your financial needs and objectives, aside from coming up with a financial plan.

Your financial planner should likewise take the time to make you understand the advantages and disadvantages of different options and financial investments. Apart from that, your financial planner should also be able to advise you in identifying other financial professionals who can help execute your plan. Your financial planner should also go through your progress every so often to ensure the plans are going well. Your financial planner should also help you become financially knowledgeable to enable you to have better understanding of your finances.

To sum up, your financial planner should be qualified and experienced in offering the types of services you are seeking. You should also see your financial planner as somebody trustworthy and credible, one you can consider a long-term business partner.

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