Business Finance

Here’s How You Can Choose A Financial Planner


Financial planners are very different from accountants. They are also different from insurance agents, stockbrokers and those people from your local Fidelity offices. Don’t confuse financial planners with any of them as the roles of a financial planner are not the same.

Financial planners will help advice their clients on how they can best save money. They will also offer their advice on topics such as investments and how their clients can make their money grow. If you plan to buy a house or if you plan to retire, then they are the people you would want to be advising you. Heck, you can even ask them about mediocre things like if it is wise to give an expensive gift such as a car or a house to a special person or if it would be better if you bought a less expensive one placed in Paper Mart gift boxes, although it is uncertain if it would be good to ask them this.

When looking for a financial planner, you can check out these helpful tips below:

  • Consider the pay structure. There are three types of planners you can hire. The first one pays through commission, the second one are fee based, and the third one are those planners who charge by the hour. Commission-based planners are quite hard to trust since they might coax you into certain financial packages where they also have a cut but then again, fee-based planners are also not perfect. If it is your first time, you should choose a planner who charges by the hour because they are most likely those who are just starting their careers but would do their best since they would have to rely on your recommendations later on.
  • Look for a fiduciary. A fiduciary means that the planner has pledged that he will act on his client’s best interests at all times.
  • Check for credentials. Always verify the credentials that they claim. It would best if you hire a planner who is a CFP, meaning he has passed the tests of the Certified Financial Planner Board of Standards.
  • Run a background check. Make sure your planner has a clean record, especially crime-related ones.

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