From Recaps Archives

Checklist For Interviewing Financial Planners

Financial Planners

You may be considering help from a financial planner for a number of reasons, whether it's deciding to buy a new home, planning for retirement or your children's education, or simply not having the time or expertise to get your finances in order. 

Whatever your needs, working with a financial planner can be a helpful step in securing your financial future.

The questions in this brochure will help you interview and evaluate several financial planners to find the one that's right for you. 

You will want to select a competent, qualified professional with whom you feel comfortable, one whose business style suits your financial planning needs. An interview checklist has been included for your convenience.

10 Questions 

Checklist for Interviewing a Financial Planner 

To Check the Disciplinary History of a Financial Planner or Adviser

To Find a Financial Planner in Your Area 

Learn About Financial Planning Online 

About CFP Board 


10 Questions:

1. What experience do you have?

Find out how long the planner has been in practice and the number and types of companies with which she has been associated. 

Ask the planner to briefly describe her work experience and how it relates to her current practice. Choose a financial planner who has experience counseling individuals on their financial needs.

2. What are your qualifications?

The term "financial planner" is used by many financial professionals. 

Ask the planner what qualifies him to offer financial planning advice and whether he 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, estate planning or retirement lanning. 

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 CFP Board or other relevant professional organizations.

3. What services do you offer?

The services a financial planner 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.

4. What is your approach to financial planning?

Ask the financial planner about the type of clients and financial situations she typically likes to work with. 

Some planners prefer to develop one plan by bringing together allof 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 you. Some planners require you to have a certain net worth 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.

5. Will you be the only person working with me?

The financial planner 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.

If the planner works with professionals outside his own practice (such as attorneys, insurance agents or tax specialists) to develop or carry out financial planning recommendations, get a list of their names to check on their backgrounds.

6. How will I pay for your services?

As part of your financial planning agreement, the financial planner should clearly tell you in writing how she 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 assets and/or income.

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.

7. How much do you typically charge?

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.

8. Could anyone besides me benefit from your recommendations?

Some business relationships or partnerships that a planner has could affect her professional judgment while working with you, inhibiting the planner from acting in your best interest. 

Ask the planner to provide you with a description of her 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 she receives for referring you to an insurance agent, accountant or attorney for implementation of planning suggestions.

9. Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?

Several government and professional regulatory organizations, such as the National Association of Securities Dealers (NASD), your state insurance and securities departments, 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. (See listing at right.) 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 or the state equivalent of that form.

10. Can I have it in writing?

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.

Checklist for Interviewing a Financial Planner : 

 FP Name   ______________________________________________________

Company: _______________________________________________________

Address: ________________________________________________________

Phone: __________________________________________________________

Date: ___________________________________________________________

1. Do you have experience in providing advice on the topics below? If yes, indicate the number of years.

Retirement planning

Investment planning

Tax planning

Estate planning

Insurance planning

Integrated planning

Other

2. What are your areas of specialization?

What qualifies you in this field?

3. a. How long have you been offering financial planning advice to clients?

Less than one year

One to four years

Five to 10 years

More than 10 years

b. How many clients do you currently have?

Less than 10 clients

10 to 39

40 to 79

80 +

4. Briefly describe your work history.

5. What are your educational qualifications?

Give area of study.

Certificate

Undergraduate degree

Advanced degree

Other

6. What financial planning designation(s) or certification(s) do you hold?

Certified Financial Planner™ or CFP®

Certified Public Accountant/Personal Financial Specialist (CPA/PFS)

Chartered Financial Consultant (ChFC)

Other

7. What financial planning continuing education requirements do you fulfill?

8. What licenses do you hold?

Insurance

Securities

CPA

J.D.

Other

9. a. Are you personally licensed or registered as an Investment Adviser with the:

State(s)?

Federal Government?

If no, why not?

b. Is your firm licensed or registered as an Investment Adviser with the:

State(s)?

Federal Government?

If no, why not?

c. Will you provide me with your disclosure document Form ADV Part II or its state equivalent?

Yes

No

If no, why not?

10. What services do you offer?

11. Describe your approach to financial planning.

12. a. Who will work with me?

Planner

Associate(s)

b. Will the same individual(s) review my financial situation?

Yes

No

If no, who will?

13. How are you paid for your services?

Fee

Commission

Fee and commission

Salary

Other

14. What do you typically charge?

a. Fee:

Hourly rate $ _________

Flat fee (range) $ _________ to $ _________

Percentage of assets under management _________ percent

b. Commission:

What is the approximate percentage of the investment or premium you receive on:

stocks and bonds _________

mutual funds _________

annuities _________

insurance products _________

other _________

15. a. Do you have a business affiliation with any company whose products or services you are recommending?

Yes

No

Explain:

b. Is any of your compensation based on selling products?

Yes

No

Explain:

c. Do professionals and sales agents to whom you may refer me send business, fees or any other benefits to 

you?

Yes

No

Explain:

d. Do you have an affiliation with a broker/dealer?

Yes

No

e. Are you an owner of, or connected with, any other company whose services or products I will use?

Yes

No

Explain:

16. Do you provide a written client engagement agreement?

Yes

No

If no, why not?

To Check the Disciplinary History of a Financial Planner or Adviser:

Certified Financial Planner Board of Standards, Inc.

888-237-6275 FREE - www.CFP.net/

North American Securities Administrators Association

202-737-0900 - www.nasaa.org

National Association of Insurance Commissioners

816-842-3600 - www.naic.org

Financial Industry Regulatory Authority (FINRA)

800-289-9999 FREE - www.finra.org

National Fraud Exchange (fee involved)

800-822-0416 FREE 

Securities and Exchange Commission

202-942-7040 - www.sec.gov

To Find a Financial Planner in Your Area Financial Planning Association

800-282-7526 FREE - www.fpanet.org

National Association of Personal Financial Advisors

888-333-6659 FREE - www.napfa.org

American Institute of Certified Public Accountants/Personal Financial Planning Division

888-999-9256 FREE - www.aicpa.org

Society of Financial Service Professionals       

https://national.societyoffsp.org