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Ask WomensFinance? : Answer |
Q: What should I
look for in a financial planner?
A: You
have to ask the right questions of a prospective financial planner in order to make an
informed decision. Examine what they offer, how they are compensated, and what types of
investments they typically recommend.
Your job is to sort through the answers and find someone who is capable of achieving your
financial goals. Someone who is both ethical and professional. You should like your
planner on a personal level, and they should become an important part of your financial
life.
What To Look For
You'll establish a better relationship with your planner down the road if you know what to
look for during your initial search.
Here a few clues:
- A planner who works and lives in same city as you do.
- A planner who has a strong financial and educational background.
- A planner with clients that have similar needs.
- A planner who has adequate client and professional references.
- A planner with a good reputation.
A planner affiliated with a
reputable firm.
A planner who discloses his/her operating practices and philosophies.
A planner who is able to outline their past performance.
A planner you're compatible with.
A planner you feel comfortable asking questions.
A planner who is patient and takes time to explain things.
What To Ask
Three to four financial
planners should make your list of potential candidates. You should interview each. Make a
list of questions you want to ask before the interview. This will help you stay focused on
what the planner has to say and allow you to be a better listener.
Be sure to take notes about the details you do like so you'll have something to compare
later. Ensure the planner understands your financial needs before leaving the interview.
Here are some basic questions to throw at a prospective planner:
- How long have you been a financial planner?
- What is your background? How did you get started in the business?
What services do you
provide? Taxes, Estate Planning, Insurance?
Do you have clients with needs similar to mine? If so, can I contact them?
Do you have any professional references?
What contracts do I have to
sign?
What kinds of investments do you recommend the most? For my financial circumstance?
How will you go about developing a financial plan?
How are you compensated? Fee-only or commission-based?
How will you keep me
informed of my investments? Annually, monthly?
How will you help me plan
for retirement?
Do you carry liability
insurance?
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