Financial planning is an important part of any individual’s life. However, too many of us try to manage our finances ourselves rather than seeking professional help when we need it. This can be a pretty serious mistake.
Depending on your personal situation, it might be a good idea to find a financial planner who can help you manage your money. But it’s important that you take the time to make sure that you’re finding a professional who is well-suited to your specific needs.
There are a lot of financial planners out there, so let’s talk about what you need to know to find the right financial planner for you.
Don’t Look for the Quick Fix
It’s all too easy for us to simply ask our friends for a name or look online for a good point of reference. There are so many financial planners out there that combing through all of them can seem like a chore that might just take more time than it’s worth.
In reality, this could not be further from the truth. As the United States Government helpfully points out:
“It’s important for consumers to understand they’re in the driver’s seat when choosing an advisor.”
Being careful and thorough will help you to make the most out of your financial situation in a number of ways, including saving money on things like commissions and fees.
For starters, it’s smart to make sure that you familiarize yourself with your options. Interview a few different candidates so that you can learn how each one works, and make notice of the differences between them.
It’s also smart to get credentials as you’re conducting your interviews. Find out where your candidates received their training and experience, so that you can feel safe in your decision.
Make Sure Your Adviser Suits YOUR Needs, Not the Other Way Around
Different financial advisers tend to prefer working with different types of clients, so it’s smart to make sure that you’re considering candidates that suit your requirements.
If there’s a minimum portfolio size that’s required of a particular advisor’s clients, it’s smart to make sure that you’re lining yourself up with someone who will be able to adequately handle your estate.
It’s also smart to find out how your financial planner works. What kind of engagement can you expect? Will you be meeting weekly, or speaking on the phone?
Knowing this information can help you to find and select a professional that works best with you.
It’s also important to consider what type of relationship you’re looking for. Do you have a few quick and easy questions? Are you looking for some help on a more long-term basis?
These questions are all important, and should definitely be gone over with whomever you’re considering for financial advice.
You’ll also want to get a keen understanding of how their compensation system works. Do they charge a fee, or by commission? Is it an hourly fee? Monthly? Weekly? These are the questions that need answering before you’re ready to pick the right financial adviser.
Finally, make sure you get some references. Social proof is never something to be discounted, and the opinions of others are usually a good way to gauge a potential financial adviser’s track record. It’s important to remember that when you’re making this type of decision, your needs always come first when you’re trying to secure your financial situation.
Above all else, just remember to take your time and consider your options when you’re looking for a good financial planner.
Are there any hot tips that we missed? Let us know in the comments how you found the best financial planner!
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