• Get referrals from friends, family or professional organizations. It’s important to find qualified financial help, but equally vital that you feel comfortable working with them.



• Prepare your key financial documents. For the initial meeting with a financial planner, bring key documents like your latest retirement plan statement, your Social Security benefit projection (which you should receive each year around your birthday), statements reflecting the total of your personal savings, and/or investments such as an IRA or life insurance. Also, know the value of your house and any other property you may own.



• Interview at least three candidates. Before your face-to-face meeting, ask if you will be charged for a consultation. Some advisors offer a free or low-cost consultation without any obligations. During each interview, ask questions to help you determine a planner’s qualifications and experience (some examples are listed below).



• Ask for and check references.



• Pay attention to practical considerations. What are the planner’s communication skills? How does he or she respond to your questions? Would you be comfortable trusting this planner with your finances?

Financial planners are generalists who may be able to help you with taxes, insurance, estate and retirement planning issues, as well as investing and budgeting.

Investment advisors can help you decide which investments are right for you, based on your needs and tolerance for risk. Advisors manage portfolios, research investment opportunities, and can make recommendations about stocks and bonds.

Here are some of the more common designations used by financial professionals and the types of services they offer:

• Certified Financial Planner (CFP). Granted by the Certified Financial Planner Board of Standards, Inc., this certification requires that planners meet certain educational and experience standards, pass a comprehensive exam, continually update their skills, and abide by a strict code of ethics. All CFPs are trained to provide comprehensive financial planning services and may specialize in one or more areas.

• Certified Public Accountant (CPA). This designation is awarded by the American Institute of Certified Public Accountants. A candidate must complete various levels of higher education and pass a national exam to earn this designation, and must be licensed by the state in which they practice. CPAs provide a wide variety of services for businesses and the general public, including developing budgets and forecasts for businesses, preparing tax returns and assisting with retirement planning. Not all CPAs specialize in personalized financial planning.

• Chartered Financial Consultant (ChFC). This is a designation granted by the American College in Bryn Mawr, Pennsylvania to those who have passed certain courses and maintain high ethical standards.

• Chartered Life Underwriter (CLU). This designation is also awarded by the American College for professionals who have completed course work and taken exams regarding life insurance, but may not have training in investments or financial planning.

• Personal Financial Specialist (PFS). The American Institute of Certified Public Accountants awards this designation to CPAs who have passed a special exam and meet certain other financial planning requirements.

• What experience do you have and what services do you offer?
  Find out how long the planner has been in practice and determine her special areas of expertise, professional certifications, and experience providing financial advice for individuals. Also, it may be good to ask what she does to stay up-to-date on the latest developments in financial planning or laws pertaining to important financial issues.



• What is your fee structure and what’s included?

Fee-only advisors are paid based on hourly or flat rates. These planners do not earn income from the financial products they suggest you buy. Their charge is for professional services in gathering and analyzing your financial data and recommending a plan.

Planners using a commission arrangement don't charge a direct fee for their services, but earn their income from commissions on financial products they sell, such as mutual funds, insurance or individual securities.

Some planners are compensated through a combination of fees and commissions. They may charge a fee for their services and also get a commission on the products they sell.

Advisors who manage investment portfolios may charge a fee based on the percentage of total assets under their management.

Get a written estimate or agreement from the planner and keep it for comparison or future reference.


• What is your approach to financial planning?
  What types of clients and financial situations does the planner typically work with? Some planners may help you develop a comprehensive financial plan (for example, they may help you with tax, retirement and estate planning), while others specialize in specific areas.



• Is there anyone besides me who may benefit from your recommendations?
  Ask the planner to provide you with a description of her conflicts of interest in writing. For example, these could include companies who provide mutual funds or insurance policies the planner sells to you. They may also include business she receives from referring you to an accountant or attorney to implement her recommendations.