Important Factors to Take into Account When Choosing a Financial Planner

Choosing the right financial planner is essentially important to one’s financial well-being. Nonetheless, making a choice isn’t always easy. Everyone nowadays claims to be a certified financial planner, so the only way to make the right decision is to consider some of these factors listed below.


Finding a financial planner who is a CFP (certified financial planner) is critical. This is because they are licensed to operate in the given field. They are also regulated and they are required to take compulsory classes on the different aspects of financial planning. One can use ASIC financial advisers register to see what areas an adviser or planner can provide advice in , in regards to finance.

Additionally, the planner should participate in training activities such as seminars and courses. This helps him/her to stay knowledgeable about the latest trends in the finance industry.


A planner’s experience in the practice is critical. An experienced finance planner should be knowledgeable in fields like securities analysis, trading, accounting and many more. He should also be able to clearly explain the method of compensation that will be used.

Payment Structure

Financial planners can either be paid on an hourly basis, upfront or given a percentage of the assets they manage. In some cases a retainer may be provided or they can be paid through commission.

Payment in fee only is the most preferred mode of payment as there is financial incentive to motivate the planner.

Area of expertise

A financial planner’s area of expertise is another important factor that one should take into consideration. Some planners are well versed in giving investment advice while others are better off selling mutual funds and stocks. It is vital to ask a planner, what area of expertise they are experienced in. This gives one a better perspective and it helps them determine if the financial planner matches their needs and preferences.


Good reputation is an important factor that determines if a particular financial planner has one’s best interest at heart. Running a background check on the planner will help one avoid fraud cases. Planners who’ve been convicted of a crime before may put one’s money at risk, which is why asking for references is critical.


Fiduciary means that the financial planner has pledged to act in a client’s best interest at all times. Professionals who are not fiduciaries are held to a lesser standard and are normally referred to as sustainability planners.

Choosing the right Finance company is critical to your financial success. By following the above stated tips, one will be better prepared to handle all matters regarding finance efficiently.