How Do I Choose a Financial Planner?

There are some basic criteria you should follow when choosing an advisor. These questions will help you determine whether a particular advisor is right for you.

1. Does the advisor listen to you and understand your financial situation, as well as your investment goals?
2. Does the advisor offer the services you need and deal in the securities in which you wish to invest? If you don't know what you need or in what securities you are interested, does the advisor offer a selection of services and securities from which you can choose?
3. Does the advisor have experience dealing with portfolios around the same size as yours? Does he have experience helping people to meet goals similar to your own?
4. What kind of clientele does the advisor serve? If you are interested in personal financial services, you want someone who focuses on individual plans as opposed to small businesses, and vice versa.
5. What sort of education/experience does the advisor have? Is he or she an accountant? A stockbroker? A Certified Financial Planner?
6. How does the advisor stay current on changes in the financial world?
7. How does the advisor approach financial planning? 8. Does the advisor work with other professionals, such as attorneys or insurance agents? (This can be helpful, depending on your goals.)

Financial advisors can have a wide variety of education, experience, and certifications. These differences mean that one advisor may have a different approach than another, or that one may be better suited to your needs than another. A financial advisor can have any of the following designations:

1. Certified Financial Planner (CFP)
2. Certified Senior Advisor (CSA)
3. Certified Public Accountant (CPA)
4. Investment Advisor
5. Stockbroker
6. Insurance Agent
7. Estate Planner

Financial advisors can offer a variety of services to clients. Some planners specialize in helping you build your stock portfolio, some will help you plan for retirement, and some can even figure out how you'll pay for your children's college.