How to Choose a Financial Planner

Finding the right financial planner can feel like dating — you’re looking for someone you trust, who gets you, and who’s not going to ghost you when things get complicated.

Whether you're planning for retirement, trying to get out of debt, or just want someone to help make sure you’re optimizing your finances, here are three things to keep in mind:

1. Look for Credentials (But Also Ask Real Questions)

You want someone who knows their stuff. A CFP® (Certified Financial Planner) is a great start. This designation signifies that they are committed to high ethical standards and they have comprehensive financial planning knowledge. You’ve probably heard you should find a “Fiduciary” and by holding the CERTIFIED FINANCIAL PLANNER® certification, that individual is legally obligated to act as fiduciaries, putting their clients’ interests first.

But don’t stop there with the CFP® mark. Ask the advisor how they actually work with clients. Are they required to invest in a certain type of funds or are they independent to invest in what is best for you?

How often will they be in touch with you? And when you have questions, will they be available to answer them?

Credentials are the baseline, not the whole picture.

2. Understand How They Get Paid

Financial planners can be paid in a few different ways: fee-only, commission-based, or a mix.

Fee-only planners are paid directly by you. They don’t earn commissions and there are no hidden sales agendas. That usually means their advice is more aligned with your best interest.

Just make sure you understand the costs and how you pay them up front. A good planner should be able to explain how they get paid in plain English.

If they make talking about fees awkward, that is a sign that they either (i) aren’t sure their fees justify their value to you or (ii) they aren’t comfortable communicating.

Communication is a one of the most important things in a client-advisor relationship.

3. Make Sure It Feels Like a Fit

This one’s underrated. You’ll be talking about your money, your dreams, your fears and maybe even your mistakes. You need someone who listens and doesn’t judge. Ideally, the advisor communicates in a way that makes you feel confident, not confused.

After all, you’re hiring a partner in your financial life. Trust your gut.

Bottom line?

A good financial planner will help you feel less overwhelmed and more in control.

Don’t rush the process. Take your time, ask questions and find someone who feels like the right fit for you and your family.