Handling investments as a newbie can be a daunting task. However, this can be relieved with the help of a professional. Why not take a step back and research for someone that is dependable to handle your financial ventures? To start, you can look up for a certified financial planner near you.
What Is a Financial Planner?
A Certified Financial Planner undertook detailed training in a degree program or a nontraditional setting. This profession usually takes at least three years of experience before attaining the CFP title.
Certified Financial Planners
While an investment adviser focuses mainly on your investments, certified financial planners practice comprehensively. They do the following tasks:
- budgeting and cash flow
- risk management
- insurance coverage
- estate planning
Ultimately wearing a wider lens to look at your financial condition as well as your goals and objectives are their main tasks.
How Do I Pay a Financial Planner?
Paying a financial planner may entail detailed or brief negotiations. There are three ways to go over it:
Some CFPs charge an hourly rate.
CFPs who opt for this payment method usually get paid only through selling certain products.
Fees & Commissions
CFPs who receive payments in fees & commissions charge a small hourly rate compared to the CFPs who receive payments in fees. They also earn commissions on the sides.
Separating these three payment methods pose an important distinction. Due to a new fiduciary rule, which will take effect by July 2019, it claims that financial professionals, which includes investment advisers and CFPs alike, must keep the best interest of the customer in mind. Said rule prevents those who keep on pushing investment funds or other products that pay them commission fees for their own benefit only.
I’ll Opt for a Financial Planner Now, but Where Do I Start?
Certain associations such as The National Association of Personal Financial Advisors, Financial Planning Association and the CFP board all offer specific search tools to walk you through different financial professionals in your location.
A number of financial planners post estimates of common service costs on their websites, while others prefer to give out their proposed costs via phone or face-to-face encounter. Finally, if they don’t offer a free consultation, run as fast as you can. Most probably, it’s a scam.
After securing a consultation, jot down what you want to ask. Make the most of it so that your payments are not wasted. Get an idea what to ask with the following questions:
- Can you name some of your clients? Do they also share the same concerns with me?
- What’s your experience? Are you certified?
- What payment method do you prefer?
- Is there a particular time that we would communicate regarding these matters? Do I only talk to you or a team?
- Is there a difference in your charges between planning and investing?
- I want to know if you have any conflicts of interest.
Don’t begin on choosing someone just because they charge cheapest. Remember, your money is at stake here. Choose someone with a quality experience.
Is It Okay to Choose Online Financial Planning Services? Won’t They Scam Me?
They’re legit but, of course, do immense research before choosing one. Though they may have limited offerings compared to traditional certified financial planners, they are still viable for handling your financial concerns. Just be sure to select what best suits you in the long run.