Before establishing a relationship with a financial planner you will want to interview several people to make sure they're the right match for you. Here are 10 important questions to ask before selecting a financial planner, plus seven key traits to expect from a good advisor. All CFP® professionals will know the answers to these questions, and exemplify these key traits.
What are your qualifications? Ask about the credentials your planner holds, and learn how she stays up to date with current changes and developments in the financial planning field. CFP® professionals expand their knowledge and stay up-to-date through mandatory continuing education courses.
What types of clients do you typically work with? Some financial planners prefer to work with clients whose assets fall within a particular range, so it's important to make sure the planner is a good fit for your individual financial situation. Keep in mind that some planners require you to have a certain net worth before offering services. When you search for a CFP® on this site, you can specify your investable asset range to find a financial planner whose services best match your needs.
Do others stand to gain from the financial advice you give me? Ask the planner to provide you with a description of his conflicts of interest in writing. For example, financial planners who sell insurance policies, securities or mutual funds will have a business relationship with the companies that provide these financial products. CFP® professionals agree to abide by a strict code of professional conduct and have an ethical obligation to put your needs above their own.
Have you ever been publicly disciplined for any unlawful or unethical actions in your career? The CFP® Board, the Financial Industry Regulatory Authority (FINRA), and your state insurance and securities departments each keep records on the disciplinary history of financial planners and advisors. Ask which organizations the planner is regulated by and contact these groups to conduct a background check. CFP® professionals are subject to disciplinary action if they violate CFP® Board standards.