Without proper financial planning, you may not be able to preserve your wealth to pass down to the next generation. Finding a good financial planner is essential to help you grow your wealth and avoid dishonest practices.
A financial planner is not a stockbroker or an accountant. However, like these professionals, financial planners make their living from commissions and fees, so it is essential to find a planner who will not take advantage of you by recommending products or solutions that you do not need.
A good place to start is the National Association of Personal Financial Advisors (“NAPFA”) directory. NAPFA requires its financial planner members to be certified and to operate on a fee-only basis, meaning they won’t take commissions. Members also pledge to act in their clients’ best interests.
Taking the first steps
As you research financial planners, the following tips can help you narrow your search:
- Ensure that the planner is certified and licensed.
- Look for a planner who is a fiduciary, and therefore is required to work in your best interest.
- Do a background check. A quick internet search can tell you if the planner has been convicted of a crime or been accused of financial fraud. You can also ask for references.
- Examine the marketing promises. Does the planner offer returns that seem too good to be true? A good planner knows there are no guarantees.
Interviewing your candidates
Once you have created a list of potential planners, set up a consultation with each one. Treat these meetings like interviews. Asking the following questions will help you choose the right planner:
- What types of clients do you work with? Some advisors have minimum requirements for their clients’ net worth.
- How much do you charge and what type of payment do you accept? A good planner will be open about fees or commissions.
- What services do you provide? Some planners only offer advice, while others provide more comprehensive planning services.
- Who stands to gain from advice that is offered to me? This question will allow you to explore conflicts of interest.
- Do you have sample plan I can review? This allows you to see the type of services that will be provided.
- How do you approach investing? With this question, you can assess how much risk will be involved.
- How often will you speak with me? You want a planner who will keep you informed each step of the way.
- Will I work with just you or a team of people? Some firms may have more than one person working on your account. You need to know who is working on your plan to make sure anyone who touches your investments meets your standards.
A good financial planner can help you set financial goals and build a solid estate. But if you think you have been taken advantage of by a financial planner or other advisor who was not acting in your best interest, the attorneys at Gaslowitz Frankel may be able to help. We have extensive experience with these issues and can help you determine if you have been the victim of misconduct. Contact us for a consultation.
