Questions to ask when seeking the advice of a Financial Planner or Strategist

During these historic financial times, it is key to first of all “plan” for your financial future, but who do you ask those questions and what questions should you ask? Here are a few suggestions and by no means are these the only things to consider:

What experience do you have?

Find out how long the person has been in this area of business and what companies have they been working with. Ask the planner/strategist for a brief overview of their experience and how they work with individuals.

What are your qualifications?

The term “Financial Planner” is utilized by many; ask the planner/strategist what qualifies them in their area of expertise. Are they a CFP – Certified Financial Planner, ChFC – Chartered Financial Consultant, and a few other designations? Where did they receive their education? Look for planners that have proven experience in various things such as tax planning, insurance, investments, and estate planning. Determine the steps the planner takes to remain current with the various trends and changes.

What services do you offer?

To sell various services the planner/strategist must be licensed and that information is available to the public. Check it out.

What is your approach to financial strategies?

Ask the planner/strategist about the type of clients they typically work with. Some planners are broad and some are specific. Some planners require that you have a particular net worth before they will take the time to work with you – if there are requirements – find out. Make sure the planners/strategist viewpoints on investing is not to aggressive or too cautious for you – ask.

Will you be the only person that works with me?

Some planners/strategist will have a team of experts to assist with the overall plans of your financial future. The team could include CPA’s, estate attorneys, tax specialist, or insurance agents. Ask for their names and information as well.

How will I pay for your services?

Depending on that planner/strategist business set up or if they work for a company – find out. Don’t get surprised later.

Have they ever been disciplined for unlawful or unethical actions?

Many government organizations keep records on disciplinary actions – look them up.

Can I have it in writing?

Ask the planner for a written agreement that provides information about the services they will provide for you. If you are paying a retainer, they will provide an agreement.

These questions are not intended to provide you with everything you need to know about financial planners or strategies but encouragement for you to be informed when planning for one of the most critical parts of your life. There are websites out there that help you plan your questions as well as provides resources when you want to research a particular person. I have listed a few on my website. By all means, if you have additional questions feel free to ask.

February 25, 2009 Tags: financial future, financial planning, investments, taxes Posted in: Financial