How to pick a financial planner who truly works for you
Finding the right financial planner can make a big difference in managing money wisely. These professionals act as personal guides, helping with investments, savings, and long-term planning. But not all planners offer the same level of service or transparency, so choosing carefully is essential.
A good financial planner starts by asking detailed questions about finances. In the first meeting, they will review income, expenses, debts, assets, insurance, and future goals. Honesty and active involvement from clients help maximise the value of the advice given.
Fees vary depending on the service model. Beginners may prefer hourly or project-based charges, while those with larger portfolios might opt for asset-based fees. Fee-only planners charge directly—either a flat rate, an hourly fee, or a percentage of managed assets. Fee-based advisors, however, combine direct charges with commissions from financial products, which can include hidden costs.
Credentials matter when selecting a planner. Certified Financial Planners (CFPs) and Registered Investment Advisors (RIAs) are often seen as more trustworthy. CFPs complete rigorous education and exams, while RIAs must follow strict rules set by the U.S. Securities and Exchange Commission (SEC) and state regulators. Both are also bound by a fiduciary duty, meaning they must act in the client’s best interest.
Commission-based advice can be riskier. Hidden fees in financial products may reduce returns over time, making fee-only or fee-based models more transparent for some clients.
Working with a financial planner can lead to better money decisions and a more secure future. The key is matching the planner’s expertise and fee structure to individual needs. Checking credentials and understanding costs upfront ensures a clearer, more effective financial partnership.
