Some Things that you Should Know When It Comes to Financial Planning
Unlike a person who calls himself an accountant or physician, just any person may call himself a financial planner or probably a financial advisor, whatever is the person’s educational background and professional experience. Moreover, not all are actually unbiased in their advice and not all would act in their client’s best interest. For you to be sure that the financial planner is really qualified in personal finances and impartial in his or her advice, then such are the essential things that you must consider.
You must be sure that one really has financial planning credentials. Having that highly-regarded credential in such financial planning, like such certified financial planner or such personal financial specialist, would actually confirm that this professional that you intend to work with has surely acquired the education and experience needed for serving as a financial planner. CFP and PFS credentials are surely awarded to those people who have met the certification requirements of education and the experience in planning for the client’s personal finances. Aside from this, they have to pass such certification exams and also must adhere to the practice standards and also the continuing education requirements.
Those financial planners are planning professionals as well but they don’t have to be experts when it comes to the subject matter. For instance, the financial planner may be skilled in such tax analysis as well as planning but compared to the CPA or the EA, one might not have to be an expert in the subject matter when it comes to those tax rules. Similarly, one may be skilled in chalking such investment plan but unlike the Chartered Financial Analyst, one may actually not be an expert in investments. It is important to make sure that you work with such financial planner who is really an expert in such subject matter specifically in the areas of personal finance that is quite important for you to achieve those financial goals.
You have to make sure that you also check the fee structure. This would highly determine whose interests really serve best, if it is of the client or one’s own. A fee-only professional would surely charge fees for such advice but this fee-based professional not only charges fees but would receive financial incentives, referral fees and commissions fro the solutions as well as products that they recommend. Such advice from that fee-only professional is more likely to be unbiased and also in your most fantastic interests as compared to the advice from that fee-based financial planner. You have to make sure that you really work with a professional that has a fee structure that is conflict-free and also great for your benefit.