What Is a Financial Planner?

By February 5, 2015 Uncategorized No Comments

A financial planner is a professional who helps you take care of your finances. They work with both individual and corporate clients. They help you save, invest and spend your money. Whatever your financial goals are, financial planners will help you achieve them. They will consider your financial situation and submit intelligent suggestions for implementation.

Financial planners should have expertise in fields such as retirement preparation, insurance, taxes, saving, investing, etc. They will connect you with other professionals such as lawyers, accountants, and investment advisors. Their skills are often tested in the following financial planning areas: asset management, risk management, retirement planning, financial management, estate planning and tax planning.

The main responsibility of financial planners is to give advice with regards to your personal finance, not only about investing. They have a long term goal of giving you guidance so you and your family are kept secure beyond your retirement age. Depending on their certifications and licenses, financial planners can assume different roles. If they want to sell insurance or stocks, they should obtain the proper license.

If you are aware that you need the help of a financial planner, there should be no concern that you’ll be relinquishing to another person control of your finances. Financial planners will work to give guidance, and not to take over your business and other assets. They will give you advice; if you follow, it will be to your best interest, but you are not obliged to do so. If you are retaining the services of an accountant and a lawyer, your chosen financial planner will work with them and become a team member.

Before you find a financial planner, you must first prepare for it. Take time to identify your goals: where do you want to see yourself 5 years from now? 10 years? 20 years? What are your most important priorities? What do you need a financial planner for? Once you have defined your life’s goals, you can start the search. Ask your family, friends and co-workers and ask for their recommendations. They may have worked with a very efficient financial planner before, and you would like to engage his services now.

When you already have a list of potential professional planners, conduct a background check. Look at their credentials. Find a certified financial planner who has enough experience in financial planning. Everyone can tell you that he/she is a financial planner, but not everyone has the ability to work and show the best results. So make a very good research, consider everything related to those people who are bragging of their titles.

During the interview, ask a lot of questions. Find out about their schooling and continuing education, including past employments. Don’t be afraid or shy to ask why they are qualified to offer advice about money matters. You may also request for some references.

Be careful who you hire, because it is your financial future that they will be working for. For a reliable financial planner, all your questions will be answered, and all your requests for information will be provided willingly.