While the amount you pay the planner will
depend on your particular needs, the financial
planner should be able to provide you with
an estimate of possible costs based on the
work to be performed.
Such costs should include the planner's hourly rates or flat fees
or the percentage he would receive as commission
on products you may purchase as part
of the financial planning recommendations.
COULD ANYONE BESIDES ME BENEFIT FROM YOUR RECOMMENDATIONS?
Some business relationships or partnerships
that a planner has could affect her professional
judgment while working with you,
inhibiting the planner from acting in your
best interest.
Ask the planner to provide you
with a description of her conflicts of interest
in writing. For example, financial planners
who sell insurance policies, securities or
mutual funds have a business relationship
with the companies that provide these
financial products.
The planner may also have
relationships or partnerships that should be
disclosed to you, such as business she receives
for referring you to an insurance agent,
accountant or attorney for implementation
of planning suggestions.
HAVE YOU EVER BEEN PUBLICLY DISCIPLINED FOR ANY UNLAWFUL
OR UNETHICAL ACTIONS IN YOUR PROFESSIONAL CAREER?
Several government and professional regulatory
organizations, such as the National Association
of Securities Dealers (NASD), your state
insurance and securities departments, and CFP
Board keep records on the disciplinary history
of financial planners and advisers.
Ask what organizations the planner is regulated by and
contact these groups to conduct a background
check. (See listing at right.) All financial planners
who have registered as investment advisers
with the Securities and Exchange Commission
or state securities agencies, or who are associated
with a company that is registered as an
investment adviser, must be able to provide
you with a disclosure form called Form ADV
Part II or the state equivalent of that form.
CAN I HAVE IT IN WRITING?
Ask the planner to provide you with a written
agreement that details the services that will
be provided. Keep this document in your files
for future reference.
