Financial Planning – 6 Major Attributes of the Perfect Financial Planner
I feel strongly that everyone in this nation could use financial planning to help make smart choices with their money. As a Wealth Coach and CERTIFIED FINANCIAL PLANNER professional today, knowing about financial planners 25 years ago when I was starting out on my own would have helped me make very different financial decisions along the way and that would have put me in a much better place today.
As both a financial planner and a financial planning client I’ve compiled a list of the six key attributes you should be looking for when searching for top notch financial planners:
Attribute #1 – THEIR PASSION IS TO HELP. The best doctors work hard to help people live healthier and more fulfilled lives. They don’t do it for the money alone. The greatest lawyers have a passion from an early age to defend and win a case at all cost. They desire to fight for you in a court of law and see a victory. The best financial professionals should care about helping you build wealth and make smart financial decisions in the same way. Respected financial planners are passionate about process…not products (and paychecks).
Trait #2 – THEY ARE EDUCATED. Your money has a lot of different intricacies associated with it, with requires that financial planning work across a wide variety of disciplines. The choices in cash flow alone can have major consequences in your taxes, your retirement, your kids’ college education and sometimes legal issues. An educated financial planner has knowledge of human behavior, insurance, taxes, investing and much more. These are lessons you learn over a lifetime and not in a 40 hour class.
Attribute #3 – THEY ARE DEVOTED TO YOU. There has been a lot of talk about the “F” word in financial services. That word is “Fiduciary.” At the core, what it means to be a fiduciary is that the best financial planners will only do what is in the best interests of their clients. A product or service will be suggested because it is the best product or service for the needs of the client, not because it earns the advisor a bonus, perk or commission.
Attribute #4 – THEY ARE INDEPENDENT. Big, well-known financial planning firms with lots of resources seem to be better equipped to help you than a small, locally owned financial planning firm for most people. The problem however is that big companies have one thing on their mind – profit – this motive creates incentives for their financial advisors that work against you and your best financial interests. The best CERTIFIED FINANCIAL PLANNER professionals out there – the ones who are the best of the financial planning best – all started or work with small, privately owned businesses.
Attribute #5 – THEY NEVER TELL YOU WHAT TO DO. It can be assumed that you don’t like to be told what to do. Nobody does, even me. Most people flee from controlling demands starting at a very early stage in life. Everyone makes dozens of economic choices every day that your financial planner should never make … and you wouldn’t want them too even if they tried. Instead, the best financial planners provide tools to their clients so that the client can make better choices in alignment with whatever is most important to their life.
Attribute #6 – THEY ARE NOT YOU. The best part about working with a good financial planner is that they see the world from a different perspective than you. We all see the world through our own unique lens – colored by past experiences and our current emotions. Many times the best thing is to have someone else look at your situation through a different lens and to share that perspective with you.
Many people will go through life without ever seeking the help of a financial professional to assist with their personal finances. Most people assume they cannot afford this kind of help and believe that many financial planners focus on the highest net worth households. Fortunately, more and more financial planning services are being offered to middle income households at very reasonable rates. While others settle for “free” advice tied to product sales – working with a financial planner who meets all six of these attributes will help you make better choices with your finances and be in much better control of your family’s financial future.
John Buerger is a Certified Financial Planner professional licensed with a registered investment advisor that provides personal financial advice online for a fee. John is a Wealth Coach and online advice pioneer who teaches his clients how to make better money choices. To find more great Financial Planning resources, visit www.AltusWealth.com today!
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