A financial planner can help you manage your investment strategy, create a budget, and help with many other areas of your financial well-being. But it’s important to know what you’re getting yourself into. In this fool live Video clip, recorded June 16, Certified Financial Planner Robert Brokamp discusses some things you should ask your financial planner before you start.
Robert Brokamp: I have a question from Foofoofoolin. “I plan to meet with the CFP in the next few weeks to discuss the future retirement in three years, what kind of questions should I ask? “First of all, I have to promote the next episode to Motley Fool Answers. Now, the one that was released yesterday starred Matt Frankel. Matt and I talked about how to choose a discount broker as well as how to choose a robot advisor. If you are looking for someone to just manage your portfolio, low cost and low cost. Next week’s episode, which drops next Tuesday, will feature one of our financial planners for Motley Fool Wealth Management, and we’ll talk about how to choose a more sophisticated financial planner. I just want to promote this. Just to give you a quick answer now, Foofoofooling, the first thing to do before entering is to figure out what you want. Do you just want someone to give you a second opinion on everything you do? In this case, you want to find someone who bills by the hour or by the project.
Or do you want someone to manage your investments? In this case, you will be paying an asset under management fees. The average is around 1%. I know we’ll have another question on this later that I’ll probably talk to, or do you want it all, someone to manage your investments and do the financial planning, planning for your retirement, planning for college , all that stuff. The most important thing to do is figure out what you want. Then ask # 1 how are you going to get paid because you want to know if they are only paid which means you charge roughly the same fees no matter what advice they give or what. they are paid by commission, in which case you might wonder if they are suggesting things that are better for you or for them. You want to make sure that they can provide the services that you are looking for. I think it’s also important to ask them if they work with people like you.
If you are a business owner, you want to find a financial planner who has experience with business owners. Some people specialize in young professionals, some people specialize in people who are on the verge of retirement like you, Foofoofooling. This is another question to ask. I would also like to ask you how long you have been in the company and what your designations are. Now you say this person is CFP? It’s a good sign. They had to take several courses, they had to pass a fairly rigorous exam, and they had to have a number of years of experience in the market. There are a lot of other designations that are not as rigorous, so I would ask a question about that as well.