Questions to Ask When Interviewing A Financial Planner

1. What experience do you have?

   Find out how long the financial planner has been in practice and the number and types of companies with which he or she has been associated. Ask the planner to briefly describe his or her work experience and how it relates to his or her current practice. Choose a financial planner who has sufficient experience counseling individuals on their financial needs.

2. What are your qualifications?

   Many different types of financial practitioners use the term ‘financial planner.’ Ask the financial planner what qualifies him or her to offer financial planning advice and whether he or she is a CERTIFIED FINANCIAL PLANNER professional. Look for a financial planner who has proven experience in topics such as insurance, tax planning, investments, estate planning or retirement planning. Determine what steps the financial planner takes to stay current with changes and developments in the financial planning field. If the planner holds a financial planning designation or certification, check on his or her background with the organization that awarded the credential.

3. What services do you offer?

   The services a financial planner offers depend on a number of factors including credentials, licenses and areas of expertise. Generally, financial planners cannot sell insurance or securities products such as mutual funds or stocks without the proper licenses, or give investment advice unless registered with appropriate regulatory authorities. Some planners offer personal financial planning advice on a range of topics but do not sell financial products. Others may provide advice only in specific areas such as estate planning or on tax matters.

4. What is your approach to financial planning?

   Ask the financial planner about the type of clients and financial situations he or she typically likes to work with. Some planners prefer to develop one plan by bringing together all of your financial goals. Others provide advice on specific areas, as needed. Make sure the financial planner’s viewpoint on investing is not too cautious or overly aggressive for you. Some planners require you to have a certain net worth before offering services. Find out if the financial planner will carry out the financial recommendations developed for you or refer you to others who will do so.

5. Will you be the only person working with me?

   The financial planner may work with you himself or herself or have others in the office assist in the process. You may want to meet everyone who will be working with you. If the planner works with professionals outside his or her own practice (such as attorneys, insurance agents or accountants) to develop or carry out financial planning recommendations, get a list of their names to check on their backgrounds.

6. How will I pay for your services?

   As part of your financial planning agreement, the financial planner should clearly tell you in writing how he or she will be paid for the services to be provided. Planners can be paid in several ways:

   • A salary paid by the company for which the financial planner works. The planner’s employer receives payment from you or others, either in fees or commissions, to pay the planner’s salary.

   • Fees based on an hourly rate, a flat rate, or on a percentage of your assets and/or income.

   • Commissions paid by a third party from the products sold to you to carry out the financial planning recommendations. Commissions are usually a percentage of the amount you invest in a product.

   • A combination of fees and commissions whereby fees are charged for the amount of work done to develop financial planning recommendations and commissions are received from any products sold. In addition, some financial planners may offset some portion of the fees you pay if they receive commissions for carrying out their recommendations.

7. How much do you typically charge?

   While the amount you pay the financial planner will depend on your particular needs, the planner’s level of experience and your geographic location, the financial planner should be able to provide you with an estimate of possible costs based on the work to be performed. Such costs should include the planner’s hourly rates or flat fees or the percentage he or she would receive as commission on products you may purchase as part of the financial planning recommendations.

8. Could anyone besides me benefit from your recommendation?

   Some business relationships or partnerships that a financial planner has could affect his or her professional judgment while working with you, inhibiting the planner from acting in your best interest. Ask the financial planner to provide you with a description of his or her conflicts of interest in writing. For example, financial planners who sell insurance policies, securities or mutual funds have a business relationship with the companies that provide these financial products. The planner may also have relationships or partnerships that should be disclosed to you, such as business he or she receives for referring you to an insurance agent, accountant or attorney for implementation of the financial planning recommendations.

9. Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?

   Several government and professional regulatory organizations keep records on the disciplinary history of financial planners and other financial advisers. Ask what organizations the planner is regulated by and contact these groups to conduct a background check. Also ask the financial planner to provide you with any government-required disclosure documents.

10. Can I have it in writing?

    Ask the financial planner to provide you with a written agreement that details the services that he or she will provide. Keep this document in your files for future reference.

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