How to Choose A Financial Planner

If your stress levels are rising just thinking about balancing the check book at the end of the month, or you're looking for a new way to start an investment or savings plan, you may need the recommendations and guidance of a financial planner. Many banks and financial institutions offer investment and financial planning advice, and can serve as a steady mentor as you get through all of your investment and buying decisions. When you work with a financial planner with your local bank, you will also have options to take advantage of ‘regular customer' discounts and incentive. Working with the right advisor is essential as you will be developing a long-term relationship.

Keep in mind financial planners aren't just for investing; they can offer much-needed advice on estate planning, budgeting, and even writing your will. You may be interested in setting up multiple savings and CD accounts, or simply learning more about options for home buying. Whatever the case may be, here are some ways to choose a financial planner that best suits your needs:

1. Decide on a national firm or your local bank. National firms can help you with multiple services including credit card and debt management, debt relief, and IRA options. Local banks can offer you more customized advice, and can even have a better idea of your personal financial situation. Assessing your strengths and weaknesses is just apart of the process, and local representatives can refer you to local agents for any resources you may need.

2. Consider their personality. Are they eager to get you started on the newest program, or are they more confident with a traditional and conservative approach? Your general style and personality will need to match up with their perspective and goals, so do ask for referrals and community networks for some ideas on wo to contact.

3. Establish a communication system. Do you want to meet with them monthly? Every quarter? Or weekly, via e-mail or a phone call? The amount of communication you need will vary depending on how involved you need them to be, so take the time to discuss the opportunities.

4. Check credentials. All certified financial planners will need to have some form of identification, and these can be reviewed through the American Financial Planners organization. You can visit their website at www.american-financialplanners.com/credentials.htm to run a search.

5. Ask your personal banker for a recommendation or referral. They can connect you easily with a bank-based financial planner, or refer you to another local representative.

6. Outline your goals before the first meeting. You'll need to note down some key areas you want to focus on. Do you want to build a savings account? Put money into stocks? Build your retirement portfolio? The more details and avenues you want to explore, the more likely that the financial planner can steer you in the right direction.

7. Review all fees and compensation agreements. Fee-only planners will charge you a base amount for their specific services, sometimes billed hourly, or by the project at hand. Commission-based planners are most often found at banks and financial institutions that pay them a portion of every package they offer to you. Learn about the payment schedule, and plan accordingly.

8. Ask questions! You need to be as well-informed as possible about your finances, regardless of whether you have a planner or not. Learn as much as possible form them, and consider different options presented without the pressure of signing anything until you're ready and comfortable.

Your financial future can be on the right track with just a few key strategies and techniques. The services of a financial planner or advisor can get you up to speed on the latest services and products available, and assess your financial situation objectively. Whether you're planning to retire, or are just saving for college, making this vital connection may help in the long-term.