t might surprise you to find out that there are many types of financial professionals to assist you with your finances. They are all different. Financial planners specifically assist you with money matters. To choose the right one, it’s not about how well their investments performed but about how well they can serve your needs. Therefore, look for the niche of services they provide. Some professionals only advise on large investments with the potential to create significant income. Others specialize in comprehensive services such as retirement, insurance, estate planning, and tax planning that is geared toward the working middle class.
CREDENTIALS
It is important to hire an advisor with experience and fiduciary responsibility. Look for designations that indicate the planner has pledged to act in a client’s best interests at all times. Designations of registered investment advisor (RIA), investment advisor representative (IAR), certified financial planner (CFP), chartered retirement planning counselor (CRPC), and accredited investment fiduciary (AIF) indicate specific fiduciary responsibility.
LISTENING SKILLS
Be wary of professionals who brag to impress and overcommit to promises that can’t be kept. An interesting trait to look for is someone who really listens to your situation instead of bragging about themselves. Through listening, your advisor will be better able to understand your needs so they can best prepare a financial plan that is appropriate to your lifestyle. And when your advisor listens to you, they are respecting you and your goals. When you have a good professional ear, you have someone you can build a good rapport with and who can effectively explain concepts as they apply to you and your situation.
TRANSPARENCY
When it comes to investing in your future, you want advice that is sound and relatable to your situation and goals. While trust comes with time, having an advisor that is transparent can help to assure that you are getting the best advice. When your financial planner is transparent, they are clear about every aspect of your relationship. An example of transparency is having fee-only services that let you know what to expect. They will also be open about the services they can and cannot provide you, along with the written terms and conditions.
SOLID REPUTATION
Another important quality to look for is a solid reputation of the advisor in your community and the financial industry. It is helpful to ask people you know for referrals. You can also look at reviews online from sources such as the Better Business Bureau. When looking at a website or talking to a financial planner, verify what leadership roles and service positions they have held in the community. Verify if they are members of certain associations in their industry and with the local Chamber of Commerce. In general, if a planner builds their reputation in the community and are active in industry associations, they have earned the trust of many.
Reagan Financial Planning is an independent fee-only financial planning and education firm devoted to helping families, individuals, and small businesses reach their financial and life goals. As an RIA in the State of Georgia, we maintain the highest level of objectivity and diligence in how we serve our clients. We would appreciate the opportunity to discuss how we can help you. Contact us for more information at (770) 658-9440.
