Finding a Financial Planner

by Debbie Vasen | More from this Blogger

21 Jul 2007 09:12 PM

Discovering the perfect financial planner for your family's needs takes a bit of homework. Although it can be a timely and lengthy process, ensuring that you find someone to trust is critical. Unfortunately, all it takes is one unscrupulous or misinformed individual to ruin your life savings and potential earnings.

A great place to start your hunt is at the National Association of Personal Financial Advisors. There is a collection of qualified financial planners listed through them, but don't assume they are all right for you. It is still important to take further steps to find the best financial advisor.

In addition to finding a good personality and ethical individual, you also need to choose how payment will be handled. Most planners work either on a fee-based or fee-only structure. Fee-based planners are often recommended by money magazines. They base their income on both the fees they charge you and possible commissions for investment products they recommend. This can often enable them to charge lower fees to their customers, but also may make some consumers worry about the incentive based decisions.

In turn, fee-only financial planners are only paid via the fees they charge you directly. This type of planner often desires to create large financial plans specific to all your money needs from budgets to investments. Unfortunately, this service usually comes with a higher price.

Occasionally you can find a planner willing to work by the hour. These are perfect for short term projects like setting up a college savings plan for your children. The best method is to ask any planner you find if they would consider this option.

Lastly, once you have determined a list of potential candidates based on their fees and services. Always take the time to check their references, arrange for a personal interview, and review their licensing status and reports with the Better Business Bureau.

Related Articles:

* Should You Get a Financial Planner?

*How Your Bank Can Help You Save

*Financial Advisors

Learn more about Debbie Vasen

Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families.

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