Choosing a Financial Planner is easier when you are informed and confident
If you've completed steps one and two, you now have a select short-list of excellent financial planners that meet your personal needs. It's time to make a choice.
Actually selecting your financial planner is probably the most exciting part of the process, but there is a little work remaining if you want to maximize your selection potential.
You know what you need and which financial planners meet those needs, but you still have to decide where you'll select the financial planner from. If you do have a couple of financial planners on a final short-list, you'll want to do some additional comparison shopping, so you can find the best deal. You also need to know what kind of final checks to make, and what questions you should ask before you sign on the dotted line or hand over that hard-earned cash.
Tip: Find out if your financial planner will perform the duties personally, or if he or she has a support staff that will handle certain tasks. You may also want to ask who will handle your accounts when your financial planner is on vacation, or unavailable for some other reason.
How will you choose your Financial Planner?
Consumers now have a number of choices when it comes to choosing financial planners. These can be broken down into two major options - in person or by remote purchase. Some people aren't comfortable with remote choice options such as the internet, and prefer to choose directly from a recommendation, advertisement or financial institution.
Remote Purchase:
- Internet - online financial planners
In Person:
- Retail - financial institution, independent or large companies
Each option has different advantages and disadvantages, and these may be influenced by your individual taste and previous experience. For instance, well trained staff at financial institutions can offer very knowledgeable advice, but on the other hand they can be biased towards their own products or confuse you with too much information.
Choosing online can give you excellent opportunities to shop around and compare services and prices - the major disadvantage is that you can't meet the financial planner straight up. Carefully weigh up the pros and cons to determine which option is most suitable for you.
Choosing a Financial Planner
Many factors have an influence when deciding who to choose as a financial planner, and these need to be weighed up; you may have a tight budget, in which case the planners who offer the lowest fees will be most attractive to you. Alternatively, you may prefer to deal with a planner who has excellent customer service and employs knowledgeable, friendly and helpful staff. The major factors that need to be considered are presented below:
Choosing a
Seller Checklist
- Reputation - time established, fair dealing, complaints record, good name, reviews
- Price - discounts, specials, less for cash
- Extras - check what other extras are offered with the financial planning service, i.e. low-fee bank accounts
- Customer service - product knowledge, at point-of-sale, after service
- Support - troubleshooting and advice
Other considerations:
- Where possible look for members of professional associations or bodies
- A prior relationship with a company can be a big advantage
Tip: Read your financial plan carefully, looking for any hidden fees or penalties for ending your strategy prematurely. Ask to see copies of any certifications, licenses, or registrations your financial planner claims to have.
Once you have factored in all these different considerations, choosing who to select from often comes down simply to your personal preference. It is important to choose a reputable, reliable planner, as this offers you the most protection if something goes wrong.
Tip: Online forums, blogs and review sites can be excellent sources for finding out a seller's reputation for good service and fair dealing.
Choosing a financial planner can be an enjoyable and rewarding experience. Once you've worked your way through all three steps of the
Buyz123 three step guide you can select exactly the right financial planner for your needs.
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