![]() Such costs should include the planner's hourly rates or flat fees or the percentage he would receive as commission on products you may purchase as part of the financial planning recommendations.Ĭould anyone besides me benefit from your recommendations? While the amount you pay the planner will depend on your particular needs, the financial planner should be able to provide you with an estimate of possible costs based on the work to be performed. In addition, some planners may offset some portion of the fees you pay if they receive commissions for carrying out their recommendations. Commissions are usually a percentage of the amount you invest in a product.Ī combination of fees and commissions whereby fees are charged for the amount of work done to develop financial planning recommendations and commissions are received from any products sold. ![]() The planner's employer receives payment from you or others, either in fees or commissions, in order to pay the planner's salary.įees based on an hourly rate, a flat rate, or on a percentage of your assets and/or income.Ĭommissions paid by a third party from the products sold to you to carry out the financial planning recommendations. Find out if the planner will carry out the financial recommendations developed for you or refer you to others who will do so.Īs part of your financial planning agreement, the financial planner should clearly tell you in writing how she will be paid for the services to be provided.Ī salary paid by the company for which the planner works. Some planners require you to have a certain net worth before offering services. Make sure the planner's viewpoint on investing is not too cautious or overly aggressive for you. Others provide advice on specific areas, as needed. Some planners prefer to develop one plan by bringing together all of your financial goals. What is your approach to financial planning?Īsk the financial planner about the type of clients and financial situations she typically likes to work with. Others may provide advice only in specific areas such as estate planning or on tax matters. Some planners offer financial planning advice on a range of topics but do not sell financial products. Generally, financial planners cannot sell insurance or securities products such as mutual funds or stocks without the proper licenses, or give investment advice unless registered with state or federal authorities. ![]() The services a financial planner offers depend on a number of factors including credentials, licenses and areas of expertise. If the planner holds a financial planning designation or certification, check on his background with CFP Board or other relevant professional organizations. Determine what steps the planner takes to stay current with changes and developments in the financial planning field. Look for a planner who has proven experience in financial planning topics such as insurance, tax planning, investments, estate planning or retirement planning. Ask the planner what qualifies him to offer financial planning advice and whether he is recognized as a CERTIFIED FINANCIAL PLANNER™ professional or CFP® practitioner, a Certified Public Accountant/ Personal Financial Specialist (CPA/PFS), or a Chartered Financial Consultant (ChFC). The term "financial planner" is used by many financial professionals. Choose a financial planner who has experience counseling individuals on their financial needs. Ask the planner to briefly describe her work experience and how it relates to her current practice. Find out how long the planner has been in practice and the number and types of companies with which she has been associated.
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