Choosing the right financial planner can have a great impact on your financial performance

Tips on how to find the best financial planner

06:58 12 July 2014

Performing an extensive research is vital to selecting a qualified and knowledgeable financial planner who will pilot your financial position to the right direction. Consider the following tips to help you find the best planner for your situation.

 

• Ensure that the planner is certified.

 

A good financial adviser should be CFP accredited and licensed. Planners attached to a professional association follow an ethical code of conduct. Their membership is terminated if they violate the professional code of conduct.

 

• Think about the Planner’s Pay Structure

 

While commission based planners may have an incentive to direct your situation in the right way, they could be less altruistic to push for the best insurance policy for you if it translates to a hefty cut on their part.

Fee based planners gaining a percentage of your yearly assets are likely to discourage you from liquidating your investments even if it would have been the most opportune thing to do at that particular time. Doing so would translate to a reduction in their gain.

 

Hourly planners are the most fitting if you are just starting. They are usually young and they take good care of your assets because their practice depends on your recommendation. The seasoned hourly planners are passionate towards taking their younger clients into prosperity.

 

• Ensure that your planner is a fiduciary

 

A fiduciary will always act on the best interests of the client. Check that the prospective planner has never been convicted or investigated for fraudulent practices. Request the planner for mentions of the existing clients with financial circumstances similar to yours.

 

As you continue aging, busier and (all being well) more affluent, you will need a financial planner to advise you on your increasingly sophisticated financial objectives and obligations. The right planner will assist you invest properly, select the right mortgage for your situation, institute calm retirement and greater financial prosperity.