5 Important Tips in Choosing a Financial Planner


Samantha Kate Gonzales, Negosentro |  Why do you need an advisor if you could just write your budget and sum it yourself on a piece of paper? It’s because we want to make sure everything is all right and guarantee the financial resources that will satisfy your demand. And there are so many factors to consider why you need to hear it coming from a financial specialist.

You might ask yourself a couple of times on how you can save efficiently, how you can expand your investment, and how not to end up a low laying scorer in credit bureau? These professionals won’t let you dive into the water without them testing it first. Experience in this industry and quality numbers will be provided for you to give you an astonishing result that comes with comprehensive financial advice.

We carefully filtered and listed below the best tips to choose the most effective financial planner.

1. Look for recommendations

Build yourself with a guide from people who already built themselves. Spread out the news and get referrals from your trustworthy friends and family members. They won’t recommend someone who’s not worth your penny and if the said expert wasted their time and money. This is the best starting point for you, these referrers might experience the same problem you’re currently encountering, and they might not be the best person to talk to but they know who. It’s better to rely on these people but if in any case that you wanted to look for more, you can also visit the Financial Planning Association’s “planner’s search” to check for a professional financial consultant.

2. Find a Certified Financial Planner

Anyone who can advise you about your financial stability can be called “Financial Advisor” but we need professional for competence in this field. In order for us to secure your money and other financial resources will go up the ladder and not the other way around, you should look for a Certified Financial Planner or CFP. It’s like a badge of honor that these professionals could wave for them to earn your trust. They will save your time and will never procrastinate. Discipline in strategies are always implied and they will not let you flaw their ultimate plan for you. These advisors are to live integrity by their name and actions.

If you want to look for them, you can always access their leads at National Association of Personal Financial Advisors (NAPFA). They only get wages from their customers that’s why commissions are really not their thing. NAPFA standards are attained by these specialists to surpass the standards needed to be a Certified Financial Planner.

3. Avoid those commission based financial planners

Let’s picture out what are the ways of these experts.

First is the commission-based advisers, their loyalty is with their dealers and not with their clients. Which results to this: they will offer you to open an account to a certain financial instrument that you don’t need, they don’t even care if it’s not suitable for your financial resources so long as you bite the bait, he’ll earn more.

Second is the fee-based advisers, they are trustworthy and should be relied on. They have this called “fiduciary duty” that prohibits them to manipulate or do a fraud on your account and assets. The transparency within makes it better to hire them, they will justify your need and won’t offer you useless products that would not make your state wealthier. This is good for beginners as well since they are paid on an hourly rate. Besides, some of them are rookies and it will add value to their service if you recommend them because of their great work.

4. They understand any conflicts

You can always say no to them. They might offer you things that they think you’ll need but if you’re in doubt that’s totally fine. They will check on your behalf if wide range investments are way better than mutual funds depending on your financial status. You don’t need to speak when it comes to these comparisons and conflicts, they are your voice.

5. Always run a background check

We’re talking about monetary terms here, not just papers and numbers. There’s nothing wrong with being investigative, you just want to be reassured that this is one of the best decision you will ever make and not as your biggest regret. You can ask if they committed a crime and if they were placed under investigation before.

Check their references and make sure to analyze their portfolio, this is the safest way to check if this expert specializes in your concern and for you to guard your financial resources without a doubt.