Critical Considerations When Determining a Financial Planner

Finding the right financial planners for your commercial requirement is not an easy task. They are not always unbiased and do not always act in the best interest of their clients. Hence, you need to understand several critical pointers to obtain the best one. The following are several critical considerations when determining a financial planner.

Planning Authority

A financial planning credential, such as Certified Financial Planner or Personal Financial Specialist (CFP), is a sign that the person you’re working with has the training and experience to be a financial planner. Only those who meet the requirements for CFP or PFS certification receive these credentials. They must also pass certification exams and engage in continuing education and practical training standards.

Fee Structure

This point determines who you serve best, your client or yourself. Fee-only professionals charge for their advice, while fee-only professionals earn commissions, referral fees, and other financial incentives for the products and solutions they recommend. A fee-only professional is more likely to advise you objectively and for your benefit than a fee-only financial advisor. A professional who charges a fixed fee is a good choice if it is aligned with your best interests.

Professional Competence

Financial planners are not subject matter experts, but planning professionals. A financial planner may be an expert in tax planning and analysis, but a CPA, an IRS enrolled agent (EA), may not be an expert in tax rules. Similarly, a financial advisor may be trained to create an investment plan, but, unlike a licensed …