What are the Aspects to be Checked While Hiring a Personal Financial Planner?

To perform financial planning properly you will need the assistance of a personal financial planner since there are several complicated aspects to be managed and it will be quite hard for you to manage all those aspects on your own. However, it will be important to find the right personal financial planner so that the right decisions can be taken which will help you accomplish your goals. 

So, in the next few sections let us explore few of the details you need to check to find the right planner.

Finding an Experienced Personal Financial Planner

Few of the things you will have to look into would include the advance payments that you may have to make and use of proprietary investments.

Advance Prepayments

personal financial plannerIf there is work yet to be completed then you should not make a large advance payment for such work. However, in some instances, it may become necessary to make a prepayment and in such situation, you should not pay more than fifty percent of the total fees as prepayment. In addition to it, if the prepayment amount is substantial then you should request your personal financial planner to divide that particular task into multiple parts so that partial deliverables of smaller amounts can be set for the same. This way you will be able to ensure that you will not have to pay a significant amount as prepayment right at the onset.

Investment in Proprietary Financial Products

If the personal financial planner asks you to buy some proprietary financial product that the planner is only selling then you need to avoid the same. This is due to the fact that in most cases these turn out to be poor investments and only serve the purpose of providing a higher commission to your financial planner. Additionally, such investment products are difficult to value, tend to be illiquid and do not have a resale market, meaning you will have no way out after you purchase these investment products. Thus, your aim should be to make an investment only in financial products that are transacted in public markets.

It is not that investment cannot be made in private offerings but before making such investment you will have to gain knowledge of how financial markets function, which can turn out to be a difficult and time-consuming endeavor for many investors. As such, many investors will rely on advice provided by their personal financial planner and since a financial planner may have vested interest in a particular investment product, it is likely that you will not be investing in the right financial product.

On the other hand, when you make an investment in financial products which are publicly traded there is no such issue since right market value for any financial product is decided by  market itself and there are lesser chances of fraud.


From above details we understand that hiring right person for financial planning is quite important and only by having proper information you will be able to select the right planner.

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