Tips and trik on Choosing a Personal Financial Planner
Kamis, 19 November 2009
Tips and trik on Choosing a Personal Financial Planner
A consultation with a fee-only financial planner (one who charges only for their time with you, but does not try to sell you a product) is one the best investments a younger individual can make. Periodic consultations with a qualified financial planner over time are important as life circumstances change. A good financial planner can help an individual to set goals and establish benchmarks for meeting those goals. In general, an individual will want to consult with a good financial planner whenever there are major life changes like births, deaths, or a significant change in financial or medical circumstances (good or bad).
The goal of the personal financial planning process is make sure you have the money that you expect to have when you need it. But how do you find a good planner who will provide you with the advice you need and provide it in a clear and objective way?
Here are some things to consider when looking for a financial planner:
The three most important factors to consider when choosing a personal financial planner deal with experience relating to your personal financial situation, the formal certifications and credentials of the advisor candidate, and how the planner will be compensated.
You will want a planner who has experience working with clients who have financial circumstances similar to your own. For a good fit, you want an advisor who has continuous experience with clients in your demographic group. You want a planner who works primarily with individuals who have needs and goals similar to your own.
Initially, you may want to look for a planner who has the Certified Financial Planner designation (CFP) or is working to get it. This designation indicates that the individual has met the appropriate educational and experience requirements, and has agreed to adhere to the organization's code and ethics.
Ask financially successful friends, colleagues, attorneys, accountants, insurance agents, or bank trust officers for recommendations and referals. The Financial Planning Association (FPA) maintains a database of CFP professionals listed by ZIP code and area of speciality.
The compensation of a personal financial advisor is an important consideration. Remember that financial planners come in many different varieties and may receive compensation in many different forms. Find out how the advisor is compensated.
What you are looking for is an advisor who is paid by you, not by commissions or fees from companies whose product they sell. To avoid conflict of interest issues with a financial planner, be sure they are fee-only, meaning they are compensated only by the hour or some other time slice. This will minimize the risk that you will be directed to an inappropriate product or investment simply because a planner gets a good commission from that product. An advisor candidate should provide complete disclosure about compensation.
Questions to Ask Yourself When Evaluating a Personal Financial Planner:
Resources:
The National Association of Personal Financial Advisors offers two Planner Evaluation Checklists for use in evaluating a financial planner candidate:
Comprehensive Financial Planning Checklist, or the more comprehensive, Comprehensive Financial Planning Diagnostic
The goal of the personal financial planning process is make sure you have the money that you expect to have when you need it. But how do you find a good planner who will provide you with the advice you need and provide it in a clear and objective way?
Here are some things to consider when looking for a financial planner:
The three most important factors to consider when choosing a personal financial planner deal with experience relating to your personal financial situation, the formal certifications and credentials of the advisor candidate, and how the planner will be compensated.
You will want a planner who has experience working with clients who have financial circumstances similar to your own. For a good fit, you want an advisor who has continuous experience with clients in your demographic group. You want a planner who works primarily with individuals who have needs and goals similar to your own.
Initially, you may want to look for a planner who has the Certified Financial Planner designation (CFP) or is working to get it. This designation indicates that the individual has met the appropriate educational and experience requirements, and has agreed to adhere to the organization's code and ethics.
Ask financially successful friends, colleagues, attorneys, accountants, insurance agents, or bank trust officers for recommendations and referals. The Financial Planning Association (FPA) maintains a database of CFP professionals listed by ZIP code and area of speciality.
The compensation of a personal financial advisor is an important consideration. Remember that financial planners come in many different varieties and may receive compensation in many different forms. Find out how the advisor is compensated.
What you are looking for is an advisor who is paid by you, not by commissions or fees from companies whose product they sell. To avoid conflict of interest issues with a financial planner, be sure they are fee-only, meaning they are compensated only by the hour or some other time slice. This will minimize the risk that you will be directed to an inappropriate product or investment simply because a planner gets a good commission from that product. An advisor candidate should provide complete disclosure about compensation.
Questions to Ask Yourself When Evaluating a Personal Financial Planner:
- Do I like the planner candidate?
- Does the planner listen to me and really understand what I am concerned about?
- Does the planner give me straightforward answers to my questions in a way that I can understand?
- Does the planner candidate load the conversation with jargon I can't understand?
- Does the planner seem to understand the issues that are of concern to me?
- How does the planner define success for a client? Is it based on portfolio rate of return? Or helping me to save money? Or planning for my kid's college education?
- What services do you provide?
- Here are my financial concerns. Do you have experience in these areas?
- What certifications do you have?
- Are you licensed to sell certain financial products, such as life insurance or securities?
- How much risk will you be taking with my investments and what is the return you expect to earn from taking those risks?
- Will my securities be transparent and marketable at all times?
- How will you be paid for your services?
- What business relationships do you have that might present a conflict of interest? Do you receive commissions for anything you recommend?
- Exactly how much will the financial products I buy from you cost in total? Give me those costs as a percentage of total amount invested.
- What sort of investments will you make on my behalf?
- Do you have peer-reviewed, academic research to support the investment strategy that you propose for me?
- Do you belong to any professional organizations?
- Will my brokerage statement come from a reliable third-party provider like Charles Schwab, Vanguard, or TD Ameritrade?
- Once the plan is complete, how much time will we spend together so I can understand it?
Resources:
The National Association of Personal Financial Advisors offers two Planner Evaluation Checklists for use in evaluating a financial planner candidate:
Comprehensive Financial Planning Checklist, or the more comprehensive, Comprehensive Financial Planning Diagnostic
Greg Retzloff is the owner/publisher of Workingmansdollar.com, a site devoted to providing the most valuable, informative and useful articles on personal money management, credit and debt solutions, retirement planning and investment strategy. Visit now and subscribe via email or RSS!
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1 komentar:
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