The Benefits Of Hiring A Financial Planner
Hiring a financial planner is one of the earliest steps a person might take to ensure they will meet their long-term financial goals
. These professionals can assess and make recommendations for many aspects of your monetary life, from savings and investments to retirement and estate planning. In addition, a skilled advisor can help you develop a short- or long-term budget to help with your planning.
Before you begin to look for a financial planner, determine what services you will need. Not every advisor who is trained to help with investment advice is equally suited for estate planning, for example. But most professionals are cross-trained in many disciplines, so be sure to find those who indicate expertise in your fields of interest. A skilled advisor should be able to help with everything from college planning to strategies for caring for an elderly relative.
It is also important to understand the licensing process for financial and investment planners. Those who handle monetary investments on Wall Street are required to be licensed by and registered with many of the regulatory agencies involved in securities, such as the U.S. Securities and Exchange Commission and NASDAQ. There are different watchdog agencies for insurance sales and investment products, so be sure that whoever is helping you with your planning is registered and licensed appropriately.
Certified financial planners (CFPs) must complete a stringent course of financial education prior to taking exams and getting their certifications. Because of the extensive training and testing regimen they go through, which includes the mastery of topics ranging from income tax planning to employee benefits plans, these professionals are generally highly regarded and well-qualified. However, be sure the person you want to hire has kept up on the required continuing education and licensing requirements to maintain their CFP designation.
While it's important that you get along with your advisor, it is perhaps even more important that they ask you the right questions to understand your goals, your time frame and your risk tolerance for investments. Once you choose a planner you are comfortable with, be sure to give them as much information as possible about your finances. You should also ask them about the number of years they have worked in the field, the number of clients they have worked with and the primary types of investment products they recommend. You may also want to determine if the advisor works on a commission basis; this may influence what they recommend for you.
For many people, the most helpful thing about creating a long-term plan with an advisor is knowing that your investment decisions will be guided and monitored by someone with many years of training and experience. But while seasoned planners have seen the highs and lows in the market, it is important to remember that they can only present you with the information you need in order to make informed decisions. Such financial decisions are ultimately up to you, so keep your risk tolerance in mind - particularly in this volatile market.
by: Stephen Daniels
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