Tips For Hiring A Financial Planner
There are a number of reasons why very large corporations and very wealthy individuals choose to hire the services of financial planners. However, this should not be taken to mean that financial planners are only meant for the well-to-do.
The prospect of having an independent financial planner is increasingly becoming popular with a large number of ordinary people. This is primarily because of the financial gain that advice from these professionals brings. The article below discusses a few tips to remember when in search of an independent financial planner.
Establish The Billing Rate And Understand Services To Be Offered
It is important to understand the services to expect form an independent financial planner. These professionals earn a living through commissions on the financial products they sell, as well as giving financial advice. Before you choose one financial planner over the other, be sure to ensure that both these services are included in the service charge. Do not take it for granted that the planner will offer both services once hired.
It is also important to understand the billing system of the financial planner. You should ask whether telephone conversations and other out-office interactions will be billed so as to avoid shock when you finally get the service charge.
Establish How To Deal With Conflicts Of Interests
There are several scenarios that may create conflict of interest between you and your financial planner. For example, a financial planner paid on commission basis alone may seem to always recommend the most expensive product available. Before you set out to choose between different independent financial planners, you need to come up with a few situations that could create conflict of interest with the planner and discuss them at length before you get into any contractual agreement with him or her.
In as much as you cannot come up with all possible scenarios, discussing a few examples will help to set the stage for how to deal with the more unpredictable scenarios that may arise.
Ask For A Gauging Mechanism
The main reason why you choose to hire an independent financial planner is that you want your finances to work for you. There is no reason why you should not ask for a gauging mechanism from the start. The gauging mechanism will be used as a measure of the effectiveness of financial advice given and financial decisions made on the advice of the planner. This often involves comparing performance of stocks bought on the planner’s advice and so on. It is important to establish a gauging mechanism with your planner from the start.
When you finally decide to get a financial planner, remember the three tips given above. For more information, contact a business such as Maddern Financial Advisers.