Choosing a financial planner is a very important decision. Who will you trust to handle your life savings and plan your financial future? The fact that someone claims to be a financial planner does not qualify him or her to handle your money. They must have
proper certification, experience and knowledge. The Four Cs of choosing a financial planner
1. Credentials ·What certifications, college /university degrees and experience does he/she have? ·How many clients or how much money does he/she handle? ·Make sure
planner is registered with
Investment Dealers Association in your area or Certified by a Government body
2. Compensation ·How are you compensated? Flat fees, salary or commission? (Beware of those who earn big commissions for placing you in high risk funds) ·Are there any hidden underwriting fees with my investment fund? ·Will you explain all
cost involved with each investment? ·What is
cost of liquidating or canceling my account with your firm? (Good to know, if you decide to switch funds or investment companies)
3. Characteristics ·What is your investment philosophy? ·Do you focus on domestic markets, foreign market or both? (Answer should be both) ·What is your specialty? Your strongest area? (Global portfolio management, no load mutual funds, stocks, bonds etc) ·How do you view risk and how does your philosophy fit my risk tolerance?