Ten questions to Ask When Choosing a Financial Advisor For Your Organization

——-  From our financial planning help series   ———-

You may be considering help from a Certified Financial Planner™ practitioner for a number of reasons, whether it’s deciding to get expert investment management advice for your organization, retirement planning ideas for employees, or simply not having the time or expertise to get your organizations finances in order.

Who is the investment decision-maker in your organization?

Sometimes is the director of finance, vice president of finance, board member or in smaller organizations the executive director may also have financial and investment responsibilities.

Whoever it is or whatever your organization’s needs, working with a financial planner can be a helpful step in securing your organization’s financial future and delegating responsibility to an outside professional.


The following 10 questions will help you interview and evaluate financial planning advisors to find one that’s right for your organization. You will want to select a competent, qualified professional with whom you feel comfortable, one whose business style suits your organization’s financial planning and asset management needs.

Q What Experience Do You Have?

A Find out how long the planner has been in practice and the number and types of companies with which they have been associated. Ask the planner to briefly describe their work experience and how it relates to their current practice. Choose a financial planner who has experience counseling organizations on financial needs that are important to them.

Q What Are Your Qualifications?

A The term “financial planner” is used by many financial professionals. Ask the planner what qualifies him to offer financial planning advice and whether that person is recognized as a CERTIFIED FINANCIAL PLANNER™ professional or CFP® practitioner, a Certified Public Accountant/Personal Financial Specialist (CPA/PFS), or a Chartered Financial Consultant (ChFC). Look for a planner who has proven experience in financial planning topics such as insurance, tax planning, investments, business planning or retirement planning. Determine what steps the planner takes to stay current with changes and developments in the financial planning field. If the planner holds a financial planning designation or certification, check on his background with the CFP® Board or other relevant professional organizations.

Q What Services Do You Offer?

A The services a CFP® practitioner offers depend on a number of factors including credentials, licenses and areas of expertise. Generally, financial planners cannot sell insurance or securities products such as mutual funds or stocks without the proper licenses, or give investment advice unless registered with state or Federal authorities. Some planners offer financial planning advice on a range of topics but do not sell financial products. Others may provide advice only in specific areas such as estate planning or on tax matters.

Q What Is Your Approach To Financial Planning?

A Ask the CFP® practitioner about the type of clients and financial situations the firm typically likes to work with. Some planners prefer to develop one plan by bringing together all of your financial goals. Others provide advice on specific areas, as needed. Make sure the planner’s viewpoint on investing is not too cautious or overly aggressive for your organization. Some planners require your organization have a certain dollar amount of assets before offering services. Find out if the planner will carry out the financial recommendations developed for you or refer you to others who will do so.

Q Will You Be The Only Person Working With Me?

A The CFP® practitioner may work with you himself or have others in the office assist him. You may want to meet everyone who will be working with you. The planner may work with professionals outside his own practice (such as attorneys, insurance agents or tax specialists) to develop or carry out financial planning recommendations for your organization.


Q How Will I Pay For Your Services?

A As part of your financial planning agreement, the financial planner should clearly tell you in writing how they will be paid for the services to be provided.

Planners can be paid in several ways:

· A salary paid by the company for which the planner works. The planner’s employer receives payment from you or others, either in fees or commissions, in order to pay the planner’s salary.

· Fees based on an hourly rate, a flat rate, or on a percentage of your organizations assets being managed by the planner.

· Commissions paid by a third party from the products sold to you to carry out the financial planning recommendations. Commissions are usually a percentage of the amount you invest in a product.

· A combination of fees and commissions whereby fees are charged for the amount of work done to develop financial planning recommendations and commissions are received from any products sold. In addition, some planners may offset some portion of the fees you pay if they receive commissions for carrying out their recommendations.

Q How Much Do You Typically Charge?

A While the amount you pay the planner will depend on your particular needs, the financial planner should be able to provide you with an estimate of possible costs based on the work to be performed. Such costs should include the planner’s hourly rates or flat fees or the percentage he would receive as commission on products you may purchase as part of the financial planning recommendations.

Q Could Anyone Besides Me Benefit From Your Recommendations?

A Some business relationships or partnerships that a planner has could affect his professional judgment while working with you, inhibiting the planner from acting in your organization’s best interest. Ask the planner to provide you with a description of his conflicts of interest in writing. For example, financial planners who sell insurance policies, securities or mutual funds have a business relationship with the companies that provide these financial products. The planner may also have relationships or partnerships that should be disclosed to you, such as business he receives for referring you to an insurance agent, accountant or attorney for implementation of planning suggestions.

Q Have You Ever Been Publicly Disciplined For Unlawful Or Unethical Actions In Your Professional Career?

A Several government and professional regulatory organizations, such as the Securities and Exchange Commission (SEC), the state insurance department, and CFP® Board keep records on the disciplinary history of financial planners and advisers. Ask what organizations the planner is regulated by and contact these groups to conduct a background check. (Click on Check up on Us.) All financial planners who have registered as investment advisers with the Securities and Exchange Commission or state securities agencies, or who are associated with a company that is registered as an investment adviser, must be able to provide you with a disclosure form called Form ADV-Part II.

Q Can I Have It In Writing?

A Ask the planner to provide you with a written agreement that details the services that will be provided. Keep this document in your files for future reference.

Used with permission of the: Certified Financial Planner Board of Standards Inc.

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