What Does a Financial Planner Do?
The primary function of a financial planner is to provide financial advice or guidance to clients for a fee. Their duties range from handling investments to facilitating retirement and estate planning processes. In addition to these functions, there are a variety of other licensed financial services they can offer. For instance, they can advise you on how much you should be saving, or the whether you should make a down payment for your mortgage. These are just some of the financial aspects they can assist you with.
In most cases, a financial planner can charge an hourly rate, a flat rate for particular projects, a fee dependent on the amount of assets you need managing, or a retainer. On the other hand, they may choose to work on commission, which usually means they take a cut when you purchase certain financial products through them. They can also charge a combination of fees and combinations.
It is recommended that you inquire which standards or codes of ethics the planner you intend to hire is bound by, what qualifications they hold, whether they are a certified planner and recognized by a reputable financial planning institution.
A professional financial planner should be able gather as much information as possible and clearly define your long-term possibilities before making recommendations. You should also have a clear agreement in place before proceeding with a project. This will entail having a written plan regarding possible major moves and other significant investments. The key is to never engage in any deal you are not comfortable with.
If you are serious about securing the services of a financial planner, make sure you do your research first. Remember it is not always about the numbers. How comfortable you are with the individual should be taken into consideration.
