When you get to the point in your financial life when you need a financial planner, you really want a good one. You have a lot at stake. You want financial advice that will provide the guidance you need for making strong financial decisions.
To get a good financial planner you will want to shop for one. You will want to interview several planners. To find a good financial planner, you will need to know what to look for. You will need to know what makes a good adviser; so we will outline some things you should look for.
Things To Look For In Your Financial Planner
- The way to test a financial planner on their financial knowledge is by asking them to talk to some of their other clients…ask for references.
- You need a financial planner with good communications skills.
- You want to trust them to help you plan and problem solve.
- They need to able to communicate solutions to you – you need to trust their skills.
- They need to provide feedback and possible solutions to you in a timely manner. Test them on this.
- Can they analyze your investment and financial situation and explain solutions in a manner that you understand and can work with.
- If you can’t understand the investment analysis and documents they prepare for you, then that analysis and documentation is worthless to you.
- Work with someone you feel comfortable with and can communicate with.
- You want to work with a planner who you trust to take time to be available to you.
- You want to build up your trust and confidence in this individual so you want them to be there at least at the beginning of the relationship.
- Do they call you back or do you always have to call them back?
- Do they personally take your questions, or do they have a staff member help you? T
- Test them, ask these questions; that is one of the best ways to establish trust.
Are Your Best Interests #1
- You want to trust that your financial planner will have your best interests at heart.
- You need someone to take you through the process.
- You don’t want to just be sold an investment product, you want to understand what you are buying and why. What problem will that investment product solve for you.
- Is it an investment product commonly used in the market place to solve the same problem you are having?
- Is there a guarantee of any kind?
- What happens if you change your mind – is there a free-look period?
Even if you do trust your financial planner it does not hurt to get a 2nd opinion. If your financial planner is confident in their own talents, skills and investment knowledge is, they won’t object.