assetbest 
Not everyone needs a financial planner. If you’re happy with your investments, have a solid plan, and feel your risks are covered, you probably don’t need one. If you are unsure about any of those things, a professional could help—but choose carefully. A title like “financial advisor” doesn’t guarantee better results.
Follow these five steps to find the right planner:
1) Define the problem and your goals. Write down the questions you have: Is retirement planning your main concern? Are your investments disorganized? Are taxes a problem? Are you carrying debt or lacking a comprehensive plan? Worrying about life insurance? Prioritize these concerns—what keeps you up at night, and what matters least. Spend 20 minutes on this now; it can save you hours and money later.
2) Understand how advisors are paid and licensed. Different licenses shape the advice you’ll get. Life insurance agents who only sell insurance will steer you toward insurance solutions. Stock brokers earn commissions, which can create conflicts between your interests and theirs. Fee-only advisors charge hourly or asset-based fees and are usually more objective, but fee status alone doesn’t guarantee competence or integrity. Many advisors wear multiple hats, which can be confusing. Cut through that by asking two direct questions: Do you earn commissions? And what portion of your revenue comes from commissions versus client fees? Their answers reveal what they’re likely to recommend. I personally prefer fee-based or fee-only planners and disclose I’m fee-based, but you still need to vet anyone you consider.
3) Watch the questions they ask. A good planner will spend your first meeting asking lots of questions about your finances, values, and goals. Are they trying to understand you, or are they focused on promoting themselves? They should want to know what money means to you, what you like about your situation, and what should change. If they don’t try to understand you, they’re probably not the right fit.
4) Do due diligence. Ask about licenses and which agencies regulate them, and get contact details for those regulators. For insurance agents, contact your state insurance department; for brokers, check FINRA; for fee-based advisors, look to the state corporations division or the SEC. Ask if there have been complaints. Request professional references (CPAs, attorneys) and speak with 2–3 clients in situations similar to yours. Ask how long they’ve worked together, what they like, what could improve, and whether they’ve referred others.
5) Trust your judgment. You should like, trust, and respect the person you hire. If something feels off, don’t ignore it. Make sure the advisor offers the services you need, asks the right questions, and makes you feel comfortable. Check regulators and references before signing on.
Finding the right financial planner can be the difference between financial peace of mind and ongoing stress. Take the time to vet candidates thoroughly—you’ll be glad you did.
What other ways do you suggest people use to vet their financial planner? What has been your experience?
