Financial planning firms are nearly identical to conventional financial advisors but with a different approach. Unlike conventional financial advisors, financial planning firms offer a wide range of services and investment strategies in order to help individuals create their own personalized portfolio. Financial planners are experts at knowing how specific market trends might affect the markets, so they can make decisions based on those predictions.
Tips to find the best financial planning firms
- Ask around
Asking around can be one of the best ways to find an excellent financial planner. Talk to trusted family, friends and coworkers who have had a great experience with a financial planner and ask them for the name of the company they used to receive their services.
- Check credentials
One way to tell if potential planners are competent is by looking at their credentials, expertise and background information. Find out how long they have been in business, what professional designations or awards they have received and what institutions or organizations they can refer you to for some background information about them as well.
- Call for references
Another good way to know about the planner you are considering is to call some of their previous clients. Find out their experience with the planner, if they are happy with the services, if they would recommend that person and if there was a need for any changes or updates with the financial plan that was created.
- What is their schedule?
If you decide to use a financial planner, find out what time of year is going to be best for meeting your needs. Financial planners might be unavailable during certain times of the year because they are traveling or taking vacation. You might want to ask about this before making an appointment in order to avoid scheduling conflicts later on.
- Be wary of high sales pressure
When you visit the office of a financial planner, you may be bombarded with a range of high-pressure sales tactics. Very few financial planners will use these tactics, but it is important to recognize them when they do happen. Try to avoid a planner who is trying to sell you something that you do not need and ask questions about how investments are going to be handled. Many times above-board financial planners will show their credentials and tell the client or potential client what they are going to be doing with their money beforehand.
- Ask for a written plan
Before parting with any money, you want to make sure that you are going to receive exactly what you asked for when you made the appointment. Ask the planner if they could send over a written plan that outlines the services they will be offering and the actual services they have rendered up until this point. Most financial planners are happy to do this so that they can show their previous customer’s the plans they created.
- Be careful of high fees and unrealistic projections
If your planner is trying very hard to convince you that investing in one stock is going to generate a huge return, it is important not to make any decisions based on this information alone. Ask your planner to show you their portfolio and explain how the investments that were made were researched, why those particular companies were chosen for investment and why those investments are performing so well.
- Ask about services
Ask the planner what the planning process consists of and whether or not they can customize the plans to suit your specific needs when it comes to insurance, estate planning, retirement plans and educational planning.