How to Find A Good Financial Planner
Part 6 of How to Find a Good Financial Planner
Ok, so you've met with your prospective financial planner or financial advisor and you've asked him or her the questions. Now it is time to evaluate. Do this right away when you get home so that things are still fresh in your mind.
Gut Check
First, listen to your gut. How did he or she feel? Did you like them? Did they seem smart, knowledgeable, understanding, and caring? Did they seem genuinely interested in you are your concerns or were they just interested in getting your money? What was their process? Did you like it? Did they explain it well?
Remember, this is the person that you are going to have to listen to when you are scared and ready to do the wrong thing. If you don't like them now, you aren't going to like them when you emotions are running high, and they are telling you something you don't want to hear.
Go Over the Questionaire
Pull back out your teachers edition and see how they did. In addition to the actual answers, really consider how they answered the questions. Did they seem glad you were asking questions? A good financial planner want their clients to know and understand what they are doing. This is for two reasons, one if the client understands then it is much easier for them to follow the process, and two, if you are a good straight shooting financial advisor, you won't mind a little scrutiny because what you are doing is sound. Bad financial planners don't like so many questions. They bother them because either it will reveal that they aren't that smart and competent no matter how long they have been in the job, or it is because they don't want people looking too closely at the house of cards they have built. A third kind of financial planner won't like the questions because they don't think you are smart enough to understand and that you are just wasting their time. To this advisor, you are the sheep he is the shepard, and you should just sign where he tells you to sign and keep your mouth shut unless you can referr him to your (richer) friends. You don't want this guy either no matter how good he or she is.
Follow Along
Once you've found someone you like and whose answers check out on the questionaire it is time to move along in the process. Here is the critical part. It is so easy to memorize all the right things to say. It is another to be able to deliver. Make 100% certain that you are getting and they are delivering exactly what you talked about in that first meeting. If they talked about going over all of your information and goals but now they want to open accounts without ever going over your information and goals, you've spotted a red flag. Otherwise, keep asking questions and do your best to always understand what is going on with your money. Keep coming back here and going over the material because then you'll have the knowlege you need to understand where the good and bad spots are as you go along.
Good luck, and please feel free to email me if you have any questions or if you want to see if something sounds good or bad that you hear along the way.
