How to choose the best financial adviser or financial planner

Are you looking for a financial adviser or financial planner to plan your financial future? 

Choose the best financial advisor. Image: business.financialpost.com

Perhaps you are ready to organize your finances so that you can escape from financial problems in the future. Maybe you want to set up investment plan, retirement, savings, insurance, education funds for your kids, and of course the preparation of health insurance and other aspect. 

You can certainly go it alone when it comes to managing your money. But you could also try to do it yourself when it comes to auto repair. Mastering personal finance requires many hours of research and learning. For most, it’s not worth the time and ongoing effort.

Before you choose a financial planner, please understand what is the financial planner and stockbrokers. Don’t confuse planners with stockbrokers — the market mavens people call to trade stocks. Financial planners also differ from accountants who can help you lower your tax bill, insurance agents who might lure you in with complicated life insurance policies, or the person at your local Fidelity office urging you to buy mutual funds.

Look for a financial adviser who is a certified financial planner (CFP). They're licensed and regulated, plus take mandatory classes on different aspects of financial planning. Please consider the planner's pay structure. A planner who earns money based on commission rather than a flat, hourly rate could have an incentive to steer you in a particular direction.

Choosing a financial planner is as essential as choosing a doctor or lawyer; it's a very personal relationship. In addition to competency, a financial planner should have integrity, trust and a commitment to ethical behavior and high professional standards. You want a planner who puts your needs and interests first.

 

Talk your financial matter with a financial planner. Image: zombienovela.com

If you're going to get professional advice, check it's from an Independent Financial Adviser. This is best if you're starting out with financial advice, as it is often difficult to identify why restricted advisers are restricted - some will be by product, and some will be by provider.

A good adviser can help couples negotiate their spending levels before and after retirement. Very often, one spouse is more of a spender and the other is more a saver. If you have aging parents who don't have - or need – a financial adviser of their own, your adviser should help you suggest to them the best ways to use and preserve their assets. Your adviser must give you direction on which investments to keep and which ones to consider selling. 

You also can find financial advisor in high street banks, or those who have chosen to specialize in certain providers' products or certain areas of advice. Their 'restricted' status means that they can only sell and advice on a limited range of products, or from a limited number of firms.

Many financial planners specialize in working with certain types of clients, such as small-business owners, executives or retirees. Many have minimum income and asset requirements. Some specialize in certain areas of planning such as retirement, divorce or asset management. This is why we recommend that you interview at least three planners in person to find the right one to serve your needs.

 

Fantastic deal with new financial planner. Image: talentnest.com

Financial advisors/planners are (generally) obligated to work in your best interests and will disclose—upfront—fees they will be charging you based on your investments.  They will work with you in a fiduciary capacity (your interests before theirs) and charge you based on a percentage of your portfolio or upfront fee. Every serious investor should work with a professional adviser for at least one year. That's enough time to tackle most of the big financial decisions you'll ever have to make, although you will probably need to revisit some issues from time to time as your life and your circumstances evolve.

If you are ready to use the services of a financial adviser or financial planner professional, it's good to ask advice from your friends or family members who have experience with the adviser or financial planner. They will give you information and advice for you. You can also search for information on financial institutions or insurance companies and investment. Hopefully you find the best for your financial planning.