Certified financial planners are investment professionals who work with individuals as well as businesses to help them plan and reach their long term financial goals. Planners will analyze each client’s current financial status and help implement a program that will help the client reach the set financial goals. They may specialize in one or more specific fields such as asset allocation, estate planning, retirement planning, risk management and tax planning. They must be certified by the Certified Financial Planner (CFP) Board of Standards.
How Does One Choose a Financial Planner?
There are many things to consider when one wants to make a selection among financial planners. The first thing to consider is where to find a planner. It is possible to go directly through CFP to find a qualified professional that is currently authorized by the board. It is best to find a local professional if possible because one should establish a good professional relationship with the person looking after his or her finances. It is also possible to do a local search, which can also have the benefit of getting recommendations from other clients.
One also needs to consider how much certified financial planners charge for their services. Many charge on a fee-only basis. This fee may be fixed, flat, hourly, percentage based or performance based. Those who charge with a commission-only policy do not charge for advice and preparation but earn a commission on the financial products the client purchases. There are also combination’s of fee and commission systems, but the advice and preparation is not free. Some planners work under a firm and draw a regular salary.
Why Retirees Can Benefit from Certified Financial Planners
Retirees and those planning for retirement can use certified financial planners to create and implement a plan when they are not sure where to begin. The planner typically follows a few steps in creating a sound financial plan. They help their clients establish financial goals, gather the data they need to make an informed decision, analyze and evaluate their financial statuses, develop a financial plan, put the plan into place and monitor the plan while making any adjustments when circumstances change.
Those who have little or no experience with handling financial matters will especially benefit from certified financial planners. Working with finances in any situation such as retirement can be very difficult and emotional for some. Also, calculating how much one will need for retirement may be confusing and too time consuming to handle one-self. Finding an objective view on these matters can help make them clear. Furthermore, it is very helpful to have this objective perspective to help one stay on track and not steer clear of their financial goals.
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