Everybody needs to know what their limitations are. But sometimes it’s hard on the ego to admit that you need help or don’t know everything you should about a topic. Set yourself free of these doubts when it comes to financial planning, because even planners themselves have to know when they need to get additional help. It’s even part of the CFP® Code of Ethics Principles.
If you are ready to seek the help of a financial advisor, first ask friends and family for referrals, or use the CFP® Locator. Next, compile a list of questions to ask when you first meet any prospective candidates. Two great sources of sample questions can be found through the Money channel of NEAMB.com here and in the CFP Checklist. A good financial advisor should be able to answer all of your questions before you establish any type of financial relationship with them. If they won’t, consider looking elsewhere.
A couple of additional points:
- Training and designations are different from affiliations. A lot of professionals use the terms “planner” or “advisor” synonymously, so it’s better to look past their title and closer at their qualifications to establish the person’s credentials for the types of services they can provide.
- There are a number of sites you can use to determine if the advisor/planner you are looking to work with has received any disciplinary actions against them or their company. They are 1) FINRA’s Broker Check, 2) the Disciplinary Actions List from the CFP Board, and 3) your state insurance commission which can be accessed online through the NAIC state map. You may even want to check with the Better Business Bureau for consumer recommendations or reviews.
Basically, it comes down to trust. This is an important decision and the person you choose to work with will be helping your family achieve their financial goals and dreams. Make sure you are comfortable with them and how they do business.
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