Selecting a financial planner can be tricky these days. Gaurav Mashruwala, Financial Planner, explains the various factors that you must look at before engaging one. To begin with, understand your financial goals and needs. For example, if insurance is your priority, then look for someone who has an insurance license.
Run a background check. It’s important to check the potential planner’s qualifications and background to help you achieve the level of service you need. Find out about their credentials. The amount of experience an adviser has is also relevant.
Meet your planner. Some financial planners work with their clients directly while others work with a team of people. Ask who will handle your account, meet them and ask whether the planner works closely with his team.
Verify your planner’s area of expertise. Some planners are registered to provide advice only on mutual funds. Others can advise on a broader selection of investments. Make sure the services they are registered to provide meet your needs.
Compare fees. Since you have to cough up money from your pocket to hire their service, it’s crucial to understand how they will charge you for these services. For example, planners can be paid in several ways—through fees, commissions or a combination of both. Be clear about the estimate of possible costs.
Review his set-up. Infrastructure also plays an important role when selecting a financial planner. Find out where the planner operates from—is he working from home or has an official set-up.
