Finding the Right Financial Planner During a Recession


The word “recession” itself often causes panic for many people, and it can cause investors to make quick decisions that can harm their financial health. Working with a financial planner during a bear market can help investors feel more prepared and confident that they can handle whatever comes their way.

What’s the best way to find a financial planner during a possible recession?

1. Look for a fiduciary

A fiduciary has your best interest in mind above all else – if an advisor has no fiduciary duty to you, they may recommend products that put more money in their own pockets, even if it doesn’t. is not the best thing for his client.

How do you know if a financial planner is a fiduciary? If an advisor or firm is registered with the SEC or holds a CERTIFIED FINANCIAL PLANNER™ professional designation, they are also a fiduciary because the SEC and CFP Board require fiduciary duty.

2. Check their credentials

If your potential advisor is CFP ® certified, you can visit the CFP Board website to check their credentials. You can also consult with an advisor or company through the SEC website.

3. Know what type of advisor would suit you best

Are you looking for a paid advisor who charges a fee, either by the hour or as a percentage of your assets they manage? Or do you want to work with an advisor who earns a commission on the products? Keep in mind that any advisor who only earns commissions cannot be a fiduciary.

You can also choose to work with an RIA, which is a company that provides fiduciary advice with several representatives of individual investment advisers. Robo-advisors are often a place where you can manage your money, but they lack much of the insight and planning that you get with a human financial planner.

4. Dive into the details

Find out about account minimums, how their advisor will be paid, and the financial planning services that will be included.

Before embarking on a lasting relationship with a financial planner, especially in a potentially volatile market, you want to have a clear idea of ​​what to expect and how the relationship will evolve. Find out how often you’ll meet with them, when you hear from them, how often you’ll hear about changes to your portfolio and the market, and whether they’ll collaborate with other members of your finance team, such as your accountant or lawyer. .

5. Ask questions that will help reassure you

You want to make sure your financial planner is listening and genuinely cares about your situation, and understands your goals and wishes.

  • If you see a market downturn as an opportunity to grow your assets, talk to any potential planner and make sure they understand your goals.
  • If you’re worried about your asset allocation, make sure you understand their processes in the event of a downturn.
  • If you’re thinking about your savings or have cash on hand, voice your concerns and see what answers you’ll get.

It is of the utmost importance to ensure that your planner listens to your specific needs and questions and responds promptly with the appropriate care and attention.

Finding a financial planner during a recession isn’t much different from finding any other time – you’ll want to prioritize finding a fiduciary that best suits your specific needs. Take the time to make sure you and your planner are a good fit, as the client/planner relationship should be long lasting.

Your planner should be someone you can count on when times are tough or great.

President, Partner and Financial Advisor, Diversified, LLC

In March 2010, Andrew Rosen joined Diversified, bringing with him nine years of financial industry experience. As a financial planner, Andrew forges lasting relationships with clients, supporting them through all stages of life. He obtained his Series 6, 7 and 63, as well as P&C and Health/Life insurance licenses.


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