Before you choose which financial planner you should work with, there are a number of questions that you should ask. Ross Pake has more than thirty years of experience in the industry and has worked with many clients during that time, so he recommends that anybody who is thinking of working with a financial planner ask all of the following before making a decision.
How Do You Get Paid?
Many financial planners will not only charge a fee for the service that they provide to you, but may also have multiple sources of income based around services that they recommend for you, such as gaining a commission if you choose to sign up for life insurance. A good planner will be completely transparent about these fees and will be able to provide you with all of the information that you need to know regarding how much you will pay them directly and what their interests are for advising you to purchase another product or service.
How Will Your Safeguard My Assets?
Your financial planner’s firm needs to have safeguards in place so that your assets are protected at all times. You should ask what these are and listen carefully to the explanation you are given. A good planner will try to make things as simple as possible, so that you understand exactly what happens to the finances you give them control over. Be wary of any planner who tries to use too much industry jargon in an effort to confuse you. You should also take the time to ask if the planner has received any disciplinary action for infractions related to the safeguarding of a client’s assets.
What Is Your Experience?
While you shouldn’t exclude the possibility of working with a financial planner who is fairly new to the industry, particularly if they work for a reputable firm, it is still important to get an understanding of your planner’s experience within the industry, particularly those related to what you are looking for them to do for you. You should also ask about any licenses and certifications that they hold, so that you can take a little time to research them online and ensure these qualifications are adequate for the service they will be providing to you.
How Do You Communicate
Ross Pake notes that developing a relationship with the client is just as important as handling their financial affairs, particularly if you are going to work as a Personal Financial Planner. As such the client should ask about how they will communicate with their financial planner, establishing which channels of communication will be used and how often they can expect to hear from the professional that they hire. Ideally, your planner will take a proactive approach to inform you of any issues or techniques that you can take advantage of.
How Do You Get Paid?
Many financial planners will not only charge a fee for the service that they provide to you, but may also have multiple sources of income based around services that they recommend for you, such as gaining a commission if you choose to sign up for life insurance. A good planner will be completely transparent about these fees and will be able to provide you with all of the information that you need to know regarding how much you will pay them directly and what their interests are for advising you to purchase another product or service.
How Will Your Safeguard My Assets?
Your financial planner’s firm needs to have safeguards in place so that your assets are protected at all times. You should ask what these are and listen carefully to the explanation you are given. A good planner will try to make things as simple as possible, so that you understand exactly what happens to the finances you give them control over. Be wary of any planner who tries to use too much industry jargon in an effort to confuse you. You should also take the time to ask if the planner has received any disciplinary action for infractions related to the safeguarding of a client’s assets.
What Is Your Experience?
While you shouldn’t exclude the possibility of working with a financial planner who is fairly new to the industry, particularly if they work for a reputable firm, it is still important to get an understanding of your planner’s experience within the industry, particularly those related to what you are looking for them to do for you. You should also ask about any licenses and certifications that they hold, so that you can take a little time to research them online and ensure these qualifications are adequate for the service they will be providing to you.
How Do You Communicate
Ross Pake notes that developing a relationship with the client is just as important as handling their financial affairs, particularly if you are going to work as a Personal Financial Planner. As such the client should ask about how they will communicate with their financial planner, establishing which channels of communication will be used and how often they can expect to hear from the professional that they hire. Ideally, your planner will take a proactive approach to inform you of any issues or techniques that you can take advantage of.