Typically, if you hear the words financial advisor or financial planner, they might evoke some images of a wealthy investment banker or accountant carrying a briefcase meeting with an elderly businessman talking about who will inherit the family business. But there are actually certified financial planners (CFPs) located everywhere on Main Street in addition to Wall Street, and you might even find them at your local bank or credit union even. The reason you should talk to a professional planner is to have your savings managed correctly so that when you find yourself faced with needs in the short-term or looking down the road to important events you have professionals who have handled everything for you. You can even find a financial planning mankato mn firm if you look around.
Understanding Credentials in Financial Planning
There’s quite a few certifications out there in the financial planning industry since there’s a lot of different investment vehicles to choose from as well as different legal codes for them. Some of the more commonly known certifications are chartered financial consultants (ChFC), chartered life underwriters (CLU) and chartered financial analysts (CFA). But what you also should look for is licensing such as the Series 65 license which Investopedia states is required for any certified advisor who falls under public in the SEC codes. Generally, most advisors who work with well-known banks or nationally-recognized firms can be trusted, but it always pays to get the recommendation of a friend or other family member who may know someone even better to have manage your money.
Understanding Each Situation To Plan For
Retirement is usually the first thing that comes to mind when financial planning is brought up, but there’s plenty of other situations that you will want a professional to be at your side for such as having a life insurance policy in place, or taking the next step if your life situation changes such as being divorced or inheriting a loved one’s assets. It cannot be stated enough that the earlier you start by having your money invested either into a life insurance policy or IRA, the greater its return will be once it matures and the right planner can keep you up to date on where your accounts are headed. The other factor to look out is how the fees will be structured, you should be weighing your options between flat fees and commission fees.
In conclusion, going through the search process for a financial planner can seem exhausting when you first hear the terminology, but your focus should be on specifically where you hope to be down the road with your money. As is true when trying to choose a doctor or lawyer, never be afraid to be direct and get a good feel for the atmosphere when meeting during the initial consultation with a financial advisor. It’s good to look for the advisor whose biggest concern is how well your investments will perform as opposed to trying to lure you in with all the sales pitches of different programs.