Financial Planning is a crucial decision and requires expertise and experience in handling such matters efficiently and effectively. Therefore, don’t rush to hire a financial planner. Instead, take time to conduct an in-depth search and shortlist potential candidates before going for the best out of the lot.
- Find out whether the service provider is a CFP professional
Though this is quite a basic question but many financial planners are not certified professionals. If you are really inclined to work with a qualified professional confirm that the service provider is CFP certified with a CFP mark.
- Products and services offered
Financial advisors are not eligible to sell financial products unless they are registered and licensed to do so. Confirm that the CFP in Honolulu you are going to hire possess the appropriate credential to offer such products and services.
- Financial Planning Philosophy
There is no appropriate and inappropriate planning philosophy in this case. But make sure that the certified planner you are working with follow a style and approach that will put you at ease rather than complicate things.
- Types of clients handled
Confirm whether the prospective planner is comfortable in handling clients like you. This is an essential consideration as clients with complicated situations like high-net worth individuals and business owners need to rely on the CFP professional for managing their wealth and investment prospective.
- Cost of services
Determine first the amount you are ready to pay for such planning services. Accordingly, find a CFP in Honolulu who falls within that range and is in tune with your budget constraint. While some CFP professionals charge on a fixed rate basis depending on the complexity of the situation others charge by the hour. Get the terms and conditions cleared before hiring a professional.
- Conflict of Interest
The CFP professional should clarify any potential conflict of interest that may impede their right to act in the best interest of the client. For instance, if there is any beneficial relationship with the insurance companies or brokers then it would not be appropriate to hire such a professional planner.
By following the above procedure you will be better able to get an idea of their strengths, weaknesses and their approach towards assisting you in selecting the right investment plan.
Benefits of hiring the services of a CFP professional
- A good CFP professional will act as a teammate and a coach to help you plan with security and safety for your financial future. Initially, you might have to undergo radical changes in your lifestyle and spending decisions but it will be for the better.
- Since CFP professionals are sworn fiduciaries they strive to act in the best interest of their clients. Working with a CFP you won’t feel that you are receiving any biased advice at any point in time.
- A CFP professional is the most qualified financial planner out there in the market who can provide you with the best assistance in financial planning. The rigorous education and experience that a financial planner is required to go through make them the most committed, and qualified candidates for such a duty.
- The Consumer Guide to Financial Planning of the CFP Board provides a detailed report on Financial Self-Defense alongside a separate publication on Consumer Guide to Financial Self-Defense. This will help to understand the roles and responsibilities of a Certified Financial Professional.
Author: Ilean Jane is a content writer at Segawa Consulting Group. Ilean Jane’s writing is usually about how to make living enjoyable and comfortable in different ways, making it an experience for everyone.