Dealing with your money can be a tricky business – especially if you have had no financial training. It’s easy to live paycheck to paycheck as many people do. However a little control and planning can make your life more secure and enable you to save money for specific requirements like college or retirement. If you have no financial training then a good idea is to find a financial adviser.
When searching for a financial adviser always check their credentials. The principal qualification for this profession is certification. Look for a certified financial planner that specializes in helping individuals. When you meet them for the first time ask them about their qualifications and experience. It is worthwhile putting in a bit of research to find the right planner. Even if their qualifications and experience meet your needs, always trust your gut feelings too. Find someone who has the right fit for you.
Also, find out what specializations they have. Some financial planners focus on estate planning, some on retirement, some on tax. Inquire about their specialty and evaluate how this will meet your needs.
It’s a good idea to interview a few financial planners. Preplan some questions to ask each of them. These can relate to qualifications, experience and specialties. You should also inquire about fees. See what type of responses you get from each of them to these types of questions. This will give you a really good idea if you can work with them. Once you decide on a planner always ask for references – and always check them.
Be aware that different financial planners have different ways of presenting fees. Some planners charge a fixed fee for their work while others will charge purely on commission. As well as these fee schedules there are planners that combine both the fixed fee and commission structure. Commissions usually come from the products that they sell. Be aware that they may try to push a product on you because the commission rate is higher and they end up with more money.
It makes sense to always ask what products that they sell. (Products include insurance, investments, mutual funds etc.) You want to make sure that the ones you buy from your planner are absolutely the best for your particular needs. A large base of products is better than a narrow one. That way you have greater options open to you, and less possibility of being manipulated in favor of a specific product.
Remember, the financial planner is just advising you on products and plans that he thinks may be right for you. Check them out before making any decision. You do not need to invest in them unless they seem right for you. Meet with your planner regularly and continually review your plan and how your products are performing. It’s a good idea to educate yourself on the subject so that you understand the guidelines for money management and can make informed decisions as you move ahead.
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