5 ways to tell if a financial planner is a good fit

The Savage Truth

Everyone is searching for trusted financial advice. There’s plenty of advice out there, much of it free — and some of it full of hidden incentives, costs and commissions. How can you choose?

The first step is to decide whether you need help primarily for investments or whether you need broader help in financial planning, including insurance, estate planning and using the best tax strategies to manage your finances.

If you need the whole package, you want to search for a certified financial planner (CFP) — not just someone who calls himself or herself a “financial planner.” You can do that search at CFPboard.org. Or, if you want to search for a CFP planner who only charges set fees, and does not get commissions on products, go to FeeOnly.org. Then make an appointment with several before deciding.

Here are five questions you should ask any adviser before making your choice. 1. Do you act as a fiduciary? That unusual word can make a huge difference in the advice you get. Fiduciaries are obligated to put their clients’ interests ahead of their own — and to fully reveal any compensation (either outright or in “soft dollars” such as trips, perks and other rewards) for the products they recommend! Brokers are not required to be fiduciaries. Ask the adviser to put it in writing that he or she adheres to fiduciary standards.