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How to Find a Certified Financial Planner

Thursday, November 13, 2008
Related Tags: planners | association | advisors | crpc | personal
 

Instructions

  • Step 1:
    Determine the reason you need a financial planner. Financial planners often have specific areas of expertise. For instance, if you need a retirement portfolio review or you have business planning questions, choose a planner that can help you with your particular needs.
  • Step 2:
    Familiarize yourself with the many designations, such as CPA (certified public accountant), CRPC (chartered retirement planning counselor) or PFS (personal financial specialist). Understanding the significance of each designation will help you find the right planner.
  • Step 3:
    Talk to your relatives, friends, co-workers or your accountant. Find out how long they've known their financial planner and whether they are satisfied with the services. Collect the names of at least three planners that you can contact.
  • Step 4:
    Interview your prospective financial planner. Since you'll be hiring his services, don't hesitate to ask questions. Reputable financial planners offer an introductory session without charge. Inquire whether he receives his compensation based on commission, a flat fee or a fee based on assets; notice whether he's knowledgeable about the products or whether he's just a salesman.
  • Step 5:
    Consult the Financial Planning Association, The American Institute of Certified Public Accountants, the Financial Planning Association, the Financial Association of Personal Financial Advisors or the Certified Financial Board of Standards. Members of these associations have earned their credentials through education and exams. You may find a financial planner by searching through their database.

Tips & Warnings

  • If you don't feel comfortable with a financial planner from the initial meeting, you may need to consider choosing a different one. The selected candidate will need to obtain a lot of personal information from you.
  • Beware of financial planners that receive a commission on what they sell. There's the possibility that he'll pressure you to purchase an investment, although this isn't always the case.

Resources


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