A Financial Checklist for Hiring a Professional
If you’ve decided that hiring a planner is the right move, follow this simple process to find the right person for you.
First, clarify your needs and goals. Before you start looking, take some time to think about what you want help with. Are you concerned about running out of money? Do you need help with tax planning? Do you want to leave a legacy for your grandchildren? Having a clear idea of your goals will help you find an advisor with the right expertise.
Second, create a list of potential candidates. Ask for referrals from friends or family you trust. You can also use online databases from professional organizations like the National Association of Personal Financial Advisors (NAPFA) for fee-only planners or the CFP Board’s “Let’s Make a Plan” website to find a CERTIFIED FINANCIAL PLANNER™ professional near you.
Third, vet their credentials and background. Once you have a few names, do your homework. Use FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure (IAPD) website to look up their employment history, licenses, and, most importantly, any disciplinary actions or complaints filed against them. Confirm they are a CFP® and a fiduciary.
Fourth, interview at least three planners. Most planners offer a free initial consultation. Treat this like a job interview—you are the one doing the hiring. Ask direct questions: How are you compensated? Are you a fiduciary? What is your investment philosophy? Who is your typical client? Find someone whose communication style and personality make you feel comfortable and respected.
Finally, review the agreement carefully. Before you sign anything or transfer any money, read the advisory agreement. Make sure you understand the scope of the services, the exact fees you will be paying, and the terms for ending the relationship. If anything is unclear, ask for it to be explained in plain English.
