Comprehensive Financial Planning

Choosing a Competent and Comprehensive Financial Planning

Selecting a financial advisor is critical. You need to choose someone who can provide comprehensive financial planning but how can you really tell if your prospective financial advisor truly uses a comprehensive approach to financial planning and money management?

Aside from this, you would want to make sure that you will be working with a competent professional. It is your finances on the line and you will be relying on your advisors recommendations in making your financial decisions. Therefore, comprehensive financial planning from a competent financial advisor is necessary.

To check the extent of the comprehensive financial planning services that an advisor offers, find out all the services he or she offers. These can include goal setting, cash flow management, cash budgeting, tax planning, investment review and investment planning, estate planning, insurance needs analysis, education funding, and retirement planning. A comprehensive financial planning service should cover all the above in addition to other services.

In addition, check what method the advisor is using to deliver comprehensive financial planning services. Will he or she provide you a written financial analysis with recommendations and implementation plan? Will he or she provide you with ongoing financial advice?

Moreover, you will have more reassurance that the comprehensive financial planning service you are getting is worth it if you are sure of the competencies and abilities of the financial advisor. To find out how competent the advisor is, check his or her educational background such as whether he or she has a college degree and/or graduate degree and the advisor's major area of study.

Also, check all the industry certifications that he or she has, for example, is the advisor registered with the National Association of Personal Financial Advisors (NAPFA) or is the advisor a Certified Financial Planner (CFP), a Certified Public Accountant (CPA), a Chartered Financial Consultant (ChFC), a Personal Financial Specialist (PFS), or certified by the Financial Planning Association (FPA).

You also want to find out how long the financial advisor has been providing comprehensive financial planning services. The ideal candidate would be someone with at least 3 years of experience because, again, your finances are at stake so you need someone who has solid experience in the financial industry

An important consideration in any professional service is the cost. How will the financial advisor be compensated for the comprehensive financial planning services? Will he or she charge a fee-only rate? Does he or she get paid by commissions or perhaps through a combination of both? You need to find out this information early on and make sure the payment terms are acceptable to you. Lastly, check if the financial advisor has received any disciplinary actions from regulatory bodies or if he or she has signed the Fiduciary Oath.