Helpful Considerations For Picking A Financial Planner
Managing your personal finances is not necessarily an easy task. Some people are more than able to go about this on their own, and others find it incredibly daunting. If you find that you belong to the second of these two categories, there's no need to be down on yourself as a result.
To put it as simply as possible, money matters can often be complicated, and that's all there is to it. Regular day-to-day expenses can be difficult enough to manage, and if you, like most people, also have to deal with credit purchases, utility bills, car and home payments, insurance premiums and a slew of other costs, it can be enough to make the average person's head spin.
This is where a professional financial planner can come in handy. Such an individual - who you'll ideally have done research on to ensure they possess all the proper credentials and certifications - can offer you a number of different services, according to your specific needs.
Perhaps the most important consideration in choosing a financial planner is determining whether or not he is a designated fiduciary. If so, he is professionally obligated to make his clients' interests the highest priority.
Some may want a financial advisor to simply come up with a plan for their finances that they can easily follow through with on their own. If this is what you need, you don't have to be as selective in whether you choose a planner paid solely by their fee, compensated on commission or paid through some combination of both methods. However, if you're looking for someone to manage your money more directly, choose carefully.
Commission-paid planners are by the nature of their employment obligated to try and sell you certain products offered by their parent institution, which might not be in your best interest. The same may apply, to a lesser extent, to planners paid partially by commission. Fee-only advisors are paid a flat rate for their services, eliminating the possibility of conflict of interest, but are also often the most expensive.
Would you rather manage your own finances or leave them up to a professional?