How do you know if you could benefit from the services of a qualified financial planner? You may not have the expertise, the time or the desire to actively plan and manage certain financial aspects of your life. You may want help getting started. You may benefit from an objective, third-party perspective on what are often emotional, difficult decisions. And in today's hectic world, it can be beneficial just to have a financial expert looking over your shoulder to double check your planning efforts and make sure you stay focused and follow through with your financial plans.

Click Here for Examples of Events That Might Prompt You to Seek Services of a Planner

How do I choose the right financial planner for me?

Choosing a financial planner is as important as choosing a doctor or lawyer. Working with a financial planner is a very personal relationship. In addition to competency, a financial professional should have integrity, trust and a commitment to ethical behavior and high professional standards. You want a planner who will put your needs and interests first.

Also, many planners specialize in working with certain types of clients, such as small-business owners, executives or retirees. Many have minimum income and asset requirements. Some specialize in certain areas of planning such as retirement, divorce or asset management. This is why we recommend that you interview at least three planners in person to find the right one to serve your needs.

What Information Should I Ask For?

First, request a written disclosure document from the planner. This will either be what's called a Form ADV or an equivalent brochure. This should answer many of your questions. You may then want to follow up with a personal interview, which many planners will do for free.

Click Here to Review Some of the Basic Background Information You May Want to Ask a Professional Advisor.

A face-to-face interview also should give you a personal sense about the planner. Does the person seem forthright in their answers? Do you have a sense of trust and rapport? Is the person focused on your needs, not selling products?

Why is 'full disclosure' vital as I pick a planner?

At the heart of any working relationship with a financial planner is trust. Trust is built on two factors: the planner acting in your best interests, and full disclosure of the planner's background, business practices and other issues.

Full disclosure means the planner is forthright in providing answers about the planner's work experience, compensation, methods of planning and so on

For example, what business relationships does the planner have? These might be relationships with companies whose products the planner sells, or referral fees the planner earns by referring you to certain professionals.

The financial planner also should disclose any disciplinary actions that may have been taken against the planner by various government regulatory agencies and professional associations. The CFP Board (888.CFP.MARK) can confirm whether disciplinary action has been taken against a particular CPF licensee.

If you do not receive full disclosure from a financial planner, that is a sign you should take your financial planning needs elsewhere.