5 Points Guide To Find Capable Hands to Manage Your Finances
Just as you go to different people for different things, such as a plumber to sort out your plumbing issues or a cardiologist to check your heart problems, you need to go to the right people for the right things. Imagine the chaos if you ask your plumber to measure your heartbeats! So you get it, right? So where do you go if you are looking for financial advice? You go to a professional, Certified Financial Planner of course.
In order for you to get capable hands to handle your finances however, there are three things absolutely vital for the process. As dumb as this sounds, they are:
- Find or shortlist some planners from a larger pool of candidates
- Choose one who fits your needs to the ‘T’
- Negotiate the terms and go on and hire him/her.
While these 3 steps appear to be quite simple, there is a lot happening between the lines there. Getting these 3 steps on track is easier said then done. Hence, to get a Financial Planner CFP to work on your side, we have devised a much simpler 5-points guide. Have a look and you’ll find that these steps will indeed help you find a man you’d stick with through the long term and beyond.
Point Number 1: Understanding the Personality of Your Advisor
Everyone looks for the knowledge base of the professionals when working with them while fewer people check for the way they function and fewer still look at the professional’s personality. Getting a personality match between yourself and your planner will really go a long way towards mutual respect, trust and relationship building.
For example, if you as a client are uncomfortable with choosing between options, sometimes because you are truly not aware of what they entail; and your planner prefers to lay out all the options for investments out on the table for you to choose from, you two aren’t the best fitted personalities. For a long-term relationship wherein both you and your planner are aware of your needs and have the mutual trust to make calls based on that, you really need to find someone who makes more directives than options.
Point Number 2: Potential for Planned Investments
You’d be surprised at just how many a financial planner CFP have lost out on giving their clients the full benefit of their investing potential, out of the failure to make planned investments. There are to many who get swayed by the ‘current flavor’ product that everyone seems to be buying up on.
A truly good advisor on the other hand, makes planned allocations and sticks with these plans. He or she will always have your investment objective in mind, whether it is Retirement Planning, insurance or wealth building. All plans will also factor in other parameters such as your risk appetite, liquidity requirement and time horizon.
Point Number 3: Advisor’s Professional Expertise
You need to ascertain whether your planner is a general planning expert or if he or she has an area of expertise that you can capitalize on. If you have one particular financial goal or objective in mind, choosing a financial planner that specializes in that area can serve to be in your best interests.
Point Number 4: Look For Pro-Activity
Look for pro-activity in your chosen advisor. Even a layman who knows nothing in depth about financial investments can spot a losing investment and divest the asset off himself when he starts making significant losses. So what we need from the financial planner CFP, is pro-activity in staking allocation stands in the right instruments and at the right time.
Point Number 5: Cross Knowledge for Tax Laws
A good advisor will be aware of the tax laws that are applicable to you specifically and your state in general. However, a truly great financial expert will save you a lot of time, money and inconvenience by actually doing a bit of tax planning for you. When it comes to making money, we all know how important that is, right?
Well, hope these 5 pointers help you find the most capable of experts to manage your money. Good luck!