What are the factor to consider when choosing a financial planner?
Answers:
The most vital factor is this: who does the planner work for? If they are independent from an investment firm, next you are on the right track. However, if the planner works for a pernickety investment firm, they will prominently be biased to steer you towards the investments that be paid them the most money.
Avoid any financial planner who tries to capture you into any of these:
- Mutual funds beside a nouns or 12b-1 excise. Only buy no-load funds.
- Variable Annuities or cash-value life span insurance policies (whole go, mutable life). 99% of these are crap because of blatantly glorious fees.
- Limited Partnerships. High fees.
- GICs: Guaranteed Investment Contracts. The payout is crap because of the fees they extract.
- Wrap accounts. Very soaring fees.
Honesty, Integrity, Not TOO Rich
That they are certified (CFP). That they aren't interested in one and only selling you insurance or manage accounts - an independent one as opposing one that works for a brokerage firm or edge.
Personal referral from your friends and citizens that you trust!
You involve a FEE ONLY financial planner. Otherwise they gross money by selling you insurance and crap investments. The worse the investments (such as annuities) the more money they engender.
Company reputation
Recommendations from other clients
Qualifications
Personality (Friendliness)
Fee base remuneration