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How to Choose the Right Financial Planner

Selecting the right planner for your needs is important - it’s best not to leave anything to chance. Don’t just assume that a referral from a friend or family member will meet your needs. Do your homework. In order to find someone who is competent, trustworthy and a good match for you, do your homework. Research, interview and compare several planners before making your decision.

Here are 10 questions you should have answers to
before you make your choice.

(Click on the question to view the answer)
1. What experience do you have?
Few things are as valuable as experience. Ask how long they have practiced comprehensive financial planning, not just selling life insurance, acting as a stockbroker, or preparing taxes.
2. What are your qualifications?
Qualifications can show commitment and specialized training that can be invaluable to a client.
3. What services do you offer?
Does this planner offer all of the services necessary to complete your plan or is the planner primarily a seller of insurance or securities products? As the saying goes, "If the only tool you have is a hammer, every problem looks like a nail!"
4. What is your approach to financial planning?
If your thoughts about financial planning do not match your planner's views, you may not be a good match. Remember, financial planning is a long-term process, make sure you choose someone you can work with for years to come.
5. Will you be the only person working with me?
Does the planner employ a team approach, or is he or she a sole practitioner? If staff or assistants will interact with you, find out when you can meet them.
6. How will I pay for your services?
Another important question. We frequently meet with people whose previous financial professional claimed to be paid by the mutual fund or insurance company, and that the client did not have to pay anything. No one works for free, so make sure all compensation is fully disclosed.
7. How much do you typically charge?
The compensation disclosure. How much? How often? When is it paid? Are there sales/withdrawal penalties?
8. Could anyone besides me, your client, benefit from your recommendations?
Are your recommendations part of a sales quota or contest? Are your recommendations "house" products that are managed or created by your company?
9. Have you ever been publicly disciplined for any unlawful or unethical act in your professional career?
The planner's disciplinary history is available to you from a variety of sources (see below), depending upon which applies. Check them out.

National Association of Insurance Commissioners (NAIC) - (816) 542-3600
www.naic.org

Securities and Exchange Commission (SEC) - (202) 942-7040
www.sec.gov

North American Securities Administrators Association (NASAA) - (202) 737-0900 www.nasaa.org

Florida Dept. of Financial Services (FLDFS) - (800) 342-2762 [Consumer Helpline] www.fldfs.com
10. Can I have it in writing?
All claims, recommendations, and plans should be provided in writing for your review. If there are any suggestions that you need to act immediately, or if any pressure tactics are used, it should cause concern. Hurrying the creation of a prudent, long-term financial plan can be detrimental to its success.