Wednesday 30 November 2011

Things To Look For In A Fee Only Financial Planner

By Maura Lara


Considering the instability of today's economy, it can be pretty difficult to manage one's finances. For this reason, many financial advisers and managers are offering their services to private individuals, government offices and large scale companies. To get the best service though, learning what to search for in a fee only financial planner is necessary.

What these professionals do is help their clients make plans in managing their finances to achieve goals related to wills, tax treatments, retirement plans and even savings. Because of this, the advisers need to know all about the financial situation of their clients, whether they are private individuals, government people or a company.

So that these advisers can properly manage the resources in an ethical way and help clients formulate goals, they must have knowledge on all the aspects involved. These aspects may include topics like taxation, asset allocation, forecasting, budgeting, debt management, and financing tools.

When managing resources for making investments, there must be balance between the latter and the risks included. For this reason, it is important for the advisers to maintain an impartial way of thinking so that balance can be achieved. They also need to be analytical to foresee potential risks.

No one learns proficiency in all these things by just joining classes and lectures. Experience is a very important thing to consider because this is what teaches experts to be experts. Clients must therefore ask their prospects how long they have been working in the industry and where they have worked.

Do not overlook small details of the professionals too such as their licensure status and recognition from authorities. It is necessary that they are recognized by the NAPFA and have been delegated with many assignments in the past. Get to know more about these things by interviewing prospects during appointments.

It is important for clients to note that a fee only financial planner demands payment directly from them. They cannot receive commissions and pays from other organizations such as mutual fund companies and brokerage firms. This is why they are more popular compared to fee based advisers.




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