by Chelle N Tx

Created on: March 08, 2008

The choice to use a financial planner (FP) is a personal decision. Using a FP is a lot like finding a knowledgeable CPA, a competent lawyer or a fantastic hair stylist. When meeting with a FP you should be prepared. Some Financial Planners will meet with you the first time for a nominal fee. Some will meet you for free. Because the financial planner's time is as important as yours, you should be prepared and organized.

You are putting your financial lively hood in the hands of someone else and you will need to do your homework to ensure you have chosen a reputable company. When you meet with the FP, keep in mind, "Can I trust this person with my money, my lively hood and my personal information?"

The following is an initial list of questions:
1.What company or firm is the FP affiliated with? (e.g. Amerprise, Edward Jones, Fidelity, etc.)
2.How long has the FP been with the firm?
3.Where did the FP receive his education / training?
4.What company does the FP and his family use for financial planning?
5.Is the firm insured? A reputable company will be insured (e.g. like your bank account is insured with FDIC) If the firm isn't insured, I'd end the conversation right there. If they aren't reputable enough to be federally insured, I wouldn't trust them with any amount of my money.
6.What service(s) are offered by the FP firm? (e.g. buy, sell stocks, purchase bonds, money markets accounts)
7.What will the FP do for you and your family? (e.g. meet a few times a year, answer email questions, work up a detailed portfolio?)
8.How often can you meet with your FP? Is there a cost associated with each meeting?
9.Can you communicate in writing or does it always have to be in person? (e.g. changing a money market option may require a physical signature, whereas a question about a stock can be answered in an email response)
10.How much are the services for the FP? Is this a one time charge? How often do you have to pay? (e.g. Our FP charged $600 for the initial workup and it's good until I have a major event in my life that would require a "new workup" ) (e.g. winning the lottery )
11.How does the FP get paid? Which services pay the FP? (e.g. purchasing an annuity will result in a dividend payment to the FP)
12.What are the FP recommendations?
13.Does the FP provide guidance and allow you to make the final decision or does the FP mandate what needs to be done? (e.g. you MUST deposits "x" dollars monthly)
14.Is there flexibility in your Financial Plan? (e.g. can the monthly allotment or bank

• 1
• 2
• Next Page >>