Choosing a Financial Planner

If you're looking for a financial planner and unsure who to turn to, you're not alone. One issue many of us have is that financial planners aren't regulated in most provinces.

"Anyone can call themselves a financial planner," says Tamara Smith, Vice President of Marketing & Consumer Affairs for the Financial Planning Standards Council (FPSC). "But not all of them have financial planning credentials. They may be licensed to sell products, but they're not licensed financial planners."

So, how do know if the planner you're thinking about working with is for real? You can start by finding out if they're a Certified Financial Planner (CFP). While being a CFP doesn't necessarily mean a financial planner is right for you, all CFPs have to complete 30 hours of continuing education every year. They also have to abide by a strict code of ethics and follow established financial planning practice standards set by the FPSC. And that's something.

Start Your Search
But certification isn't the only thing you'll want to ask about before you choose a financial planner. To help you get started on your search, the FPSC has created 10 Tips for Choosing a Financial Planner. The list includes tips such as doing your own research on financial planning strategies, thinking about your financial goals, asking for referrals, checking credentials, and interviewing multiple planners."Referrals are a good place to start, but do your own research too," says Smith. "Anything you can do to research terms and strategies on your own will help you interview planners. And always interview more than one and ask for references."

Many of us go to our friends and families for referrals, but Smith suggests also talking to other professionals you work with, those who know your financial situation like your accountant or lawyer. That's because your friends and family will have their own unique financial goals, so their financial planner may not be right for you.

Ask the Right Questions
When you're interviewing financial planners, ask about their credentials, who their clients are, how they communicate with clients, and how often. You'll also want to ask about how they get paid. This is where doing your own research up-front will help. A financial planner might be paid by commission, fee-only, salary, or some combination of the above. There's no one "right" approach, but you may be more comfortable with some fee structures then others.

Get the Right Fit
While credentials are important, Smith says many people underestimate the importance of a good fit. "This is a long-term relationship. Good fit is so important. You must be honest in the information you give, and you need to be comfortable talking about your goals, bad decisions you've made, etc. You should never feel like you're an imposition or taking up someone's time."

Smith offers one final tip. "Get everything in writing. Anyone who won't write things down [for you] isn't the right planner."



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