Finding a financial planner

Financial planning isn’t just about making sure you can retire at sixty and spend the rest of your life playing golf. It’s about being able to put a down payment on a house, knowing if you’ll be able to help your kids with college, getting rid of credit card debt and finding out whether you’ll be able to retire at all. The numbers of Americans needing to work well past their expected date of retirement rises every year, and even if your retirement date is getting close, it may be worth checking into your financial options with a planner.

What qualifications should a financial planner have?

Good financial planners will be willing to talk about their qualifications and credentials. You don’t want to work with anyone who is tight-lipped about these topics. There are a number of certifications available for those looking to work as financial planners. Typically, you should look for certain letters after your potential planner’s name: CFP (Certified Financial Planner), ChFP (Chartered Financial Planner) or CPA/PFS (Certified Public Accountant, Personal Financial Specialist). To receive any of these three certifications, a planner must have completed an extensive course of study, as well as passed a certification exam.

Where can I find a financial planner?

There are pages of financial planners listed in your local Yellow Pages, and that may be a good place to start. You might also consider soliciting recommendations from friends and family. But if you’re having a hard time finding a likely candidate, there are a number of websites that can provide listings for your area:

• Financial Planning Association
• National Association of Personal Financial Advisors
• American Institute of Certified Public Accountants-Personal Financial Planning Division
• Society of Financial Service Professionals

What should I ask my prospective financial planner?

• What services do you offer? Not all financial planners offer a full range of services. If there is a specific expertise you know that you’re going to need, like help dealing with student loans, ask about it.
• What approach do you take to financial planning? Some planners prefer to work with specific situations, and if yours isn’t to their liking, you may want to choose a more receptive planner.
• How will I pay you? Some financial planners will work for ‘free’ – but they’re really relying on commissions from selling you financial products. To protect your own interests, you want a financial planner who works for a set fee.
• Do you have any conflicts of interest? Some planners have affiliations of various types with companies that may prevent them from acting in your best interest. Ask for a list of these conflicts in writing.
• How much do you typically charge? A planner won’t be able to give you an estimate on the services you need until he or she has become familiar with your financial situation. However, you can ask for amounts charged in similar situations or an average fee.

You can also check up on a financial planner’s record if you’re worried about anything they’ve told you. The Certified Financial Planner Board of Standards offers various resources for checking disciplinary records.