How to choose a financial planner

JULY 2022 How to choose a financial planner

By Paul Meyerhoff

Special to The Enterprise

It can be overwhelming to choose a financial planner. They go by many titles and acronyms, provide different services and are compensated in a variety of ways. This brief article offers five tips for selecting the right financial planner for you. Know what you are looking for

Do you want someone to manage your investments? Are you looking for advice on a range of personal finance issues other than investments? Or are you looking for a comprehensive package of services that includes investment management as well as planning? The terms “financial advisor” and “financial planner” are often used interchangeably, but not all financial advisors provide financial planning services – some may be mostly focused on selling or managing investments. Check out the qualifications

The financial planner may go by other titles, such as “financial advisor” or “wealth manager,” so assessing their capabilities is key. You want to ensure they have experience in the services you seek. A Certified Financial Planner (CFP) mark indicates that the individual has met comprehensive education, examination and experience requirements. Be sure to ask a potential planner if they are acting in a fiduciary capacity, which requires them to put your interests first. Look for a planningcentric process

Financial planning should lead the investment process and not come as an afterthought. A planning-centered advisor can help you align your investment portfolio with your goals. Making investment decisions without a thorough understanding of why and when your money is needed can lead to a portfolio that is too risky or too conservative for your needs. Understand how you will be charged for services

Your planner should be able to clearly spell out all the fees you will pay, how you will pay them, and the services provided for those fees. “Fee-only” financial planners are compensated directly by clients solely and do not receive commissions, which helps to reduce conflicts of interest. Assess the personal aspect

When done well, financial planning is personal. Your plan should be about you — your goals in life and the financial strategies that can help achieve them. You want someone who is a good listener and empathetic and gets to know you and your values. A financial planner and client working as a team will create the best financial plan. Ideally, the planner will collaborate with other professionals such as attorneys and tax professionals as part of your team.

To find a financial planner, consider asking family members, friends, and colleagues for recommendations. You can do localized internet searches, such as “fee-only financial planner Davis CA,” and search on www. letsmakeaplan.org. Potential regulatory issues are disclosed at www.brokercheck.finra.org. Once you have a short list, schedule a call to discuss your situation and get a feel for whether they are a good fit. A good financial planner will help you gain confidence in your situation and help you make the most of your resources.

Adobe Stock/ Stock photo

A good financial planner will help you gain confidence in your situation and help you make the most of your resources.