The Four Cs of choosing a financial planner

1. Credentials

• What certifications, college /university degrees and acquired skill does he/she have?
• How many clients or how much funds does he/she handle?
• Make sure the planner is registered with the Investment Dealers Association in your area or Certified by a Government body

2. Compensation

• How are you compensated? Flat fees, salary or commission? (Beware of those who earn big commissions for affixing you in high risk funds)
• Are there any hidden underwriting fees with my investment fund?
• Will you explain all the cost involved with each investment?
• What is the cost of liquidating or canceling my account with your firm? (Good to know, if you decide to switch funds or investment businesses )

3. Characteristics

• What is your investment philosophy?
• Do you focus on domestic markets, foreign market or both? (Answer should be both)
• What is your specialty? Your strongest area? (Global portfolio management, no load mutual funds, stocks, bonds etc)
• How do you view risk and how does your philosophy fit my risk tolerance?

4. Customer service

• What services does your firm offer?
• How accessible will you (the agent) be?
• Will you review the funds last 5 to 10year performance in the prospectus?
• What has been your year-to-year investment performance?
• What was you worst year? Best year? And why? (Look for defensiveness or humility after raising this question, it reveals personality type)
• Do you offer financial planning, funds management or both?

In conclusion, a financial planner works for you, and should be compatible with your personality, risk tolerance and financial goals. Make sure that your hard earn money is in great hands. Interview potential planners, inquire of for references and call at least 3 of those references.

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