52 Weeks to Financial Fitness by Marshall Loeb

Author:Marshall Loeb
Language: eng
Format: epub
Tags: Business
ISBN: 9780609504284
Publisher: Crown Religion/Business/Forum
Published: 2008-09-12T16:00:00+00:00

Make appointments for face-to-face interviews with each of the candidates on your list. These sessions are free, and good planners welcome them as a way to ensure that prospective clients will not misunderstand what a practitioner can do for them.

You must ask these key questions during your preliminary interviews.

What is your educational and professional background? You want to know what degrees the candidate earned and what he or she did before becoming a financial planner. If the practitioner formerly specialized in a particular financial product—insurance, for example—you might find that he or she is biased in favor of insurance-related solutions to financial problems, even if better answers are available.

What financial-planning designations have you earned? Favor candidates who have qualified as Certified Financial Planners, Chartered Financial Consultants, or Personal Financial Specialists. These titles should appear on the business card you are given. They do not guarantee that the planner’s judgment is sound, but they at least indicate that he or she took the time to learn the details of the profession and of personal finance. Make a phone call to confirm that the planner has registered with the Securities and Exchange Commission as an investment adviser.

Are you a member of any professional financial-planning associations? In addition to those mentioned above, the Certified Financial Planner Board of Standards, which licenses Certified Financial Planners (CFPs), requires them to sign ethical codes. Members who violate the rules are punished with anything from public censure to expulsion.

How long have you been offering financial-planning services? The answer you want to hear is at least three years, the time now required before anyone can earn the CFP designation.

What continuing education do you pursue, to stay up-to-date on financial planning? The candidate should at least do the minimum required to retain his or her CFP certification: 30 hours of seminars, classes, or home study every 2 years.

Who is your typical client? Be sure the planner is well versed in working with people like you. Most planners are generalists, but some specialize in, say, retirement or small-business problems.

May I have references? Insist on getting the names of at least three clients, and be sure to seek their opinions of the planner and his or her advice. Also ask the candidate for a copy of a plan he or she has prepared for a client like you (with the name deleted, of course). Study the plan to make sure its analysis of the client’s finances, and its advice, make sense to you.

How much time will you spend with me, and who will work on my plan? Be sure that you’re interviewing the person who will analyze your financial situation and make recommendations. Avoid planners who assign that work to a junior employee. You can expect a planner to spend three or more hours with you, gathering facts about your finances, discussing ideas, and explaining his or her recommendations.

Have you been cited by a professional or regulatory agency for disciplinary reasons? Most likely, you won’t get a straight answer from a

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