What Qualities to Look For in a Financial Planner? Choosing the Best Advisor for Your Money Management Needs
May 16, 2017
Not everyone is capable of managing personal finances on his own. This is why some money-savvy people hire financial experts—also known as financial planners or advisors—to help them make wise money decisions.
Looking for a financial planner for your money management needs? Here are the most important qualities you must look for in a potential advisor:
Certified or registered practitioner
A certified financial planner (CFP) has at least 3 years of relevant work experience and has passed a rigorous exam that tests knowledge on various finance topics such as retirement planning, insurance, investments, and financial planning, among others. If your money advisor is a CFP, you can be sure that he or she is well-equipped to guide you through your financial journey.
Money is a serious matter—you don’t want to entrust your money to someone who lacks experience and knowledge in handling someone else’s finances. When you interview possible financial advisors, ask probing questions to get to know their level of wisdom when it comes to managing and making decisions on money.
A good financial planner is someone who’s not beholden to a broker-dealer, as this restricts the kind of financial products he can recommend. Choose someone who’s independent and can provide you with a wide variety of options.
More than technical knowledge and experience, a sound financial advice comes from an expert who also knows how to empathize with his clients. The best financial planner is someone who genuinely cares for the overall well-being of his clients, listens to their concerns, and ask thoughtful questions to understand clients and their needs better.
In a nutshell, you need a financial advisor who has strong leadership skills—someone who is a complete package. If you can find all these four qualities in a financial planner, then you’ll have a trusted partner for handling your finances.