Finance FAQs #4
Q1.I need help with my decisions. How do I find the right professional to help?
A1. Donna Burrill, Burrill Financial Services :
People who have formal education and work experience in financial planning include:
- Certified Financial Planners (CFP)
- Chartered Financial Consultants (ChFC)
- Chartered Life Underwriters CLU)
Additionally, CLU's and CHFC's have concentrations in estate planning topics. Typically, CHFC's work with business owners so they have greater experience in employee benefits. In practice, CFP's focus more on investment analysis and CLU's on insurance planning and conservative asset allocation. A few Certified Public Accountants (CPA) get an additional designation for personal financial planning. Most CPA's are an important advisor to consult on any idea that has income or estate tax implications. An attorney that specializes in elder law and estate planning could be very helpful in providing needed documents (wills, trusts, living wills, etc.) as your circumstances warrant.
While these are the main professionals, your needs may be simple enough to be handled on you own, with your current life and health insurance agent or stock broker. If you want a professional opinion or want to use a professional with whom you are not already acquainted, ask your friends and co-workers who they use. For these issues ask the professional in the initial interview (most reputable practitioners will allow a 15-30 minute meeting to determine if you are comfortable):
- What typical clientele do you work with?
- What areas of advice to you specialize in?
- How do you get paid?
- What licenses and designations to you hold?
- When you start with a new client what part or parts of your planning/advisory process is most important?
If the answers to these questions match what you are looking for and you've asked them without prejudicing the answers by telling the person before hand what your are looking for, then this should be a satisfactory working relationship.
People are sometimes fearful of the cost of hiring a qualified advisor. Don't be. Whether this practitioner is paid by fees or a commission, if you have hired someone you can understand, you will know if your are getting valuable help and it will be well worth the price. In addition to being understood, a good advisor will provide any information you need, never rush your decisions (although an experienced and ethical one will identify for you when timing is a factor in your favor) and have a method in place to follow up with future services as is appropriate.
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