Wednesday, October 26, 2011

I already have a Financial Planner... Do you?

I hear this many times in the marketplace. Someone will ask me what I do for a living and I usually say "I'm a Financial Planner." Their response typically goes something like this, "That's great. My Guy is with XYZ Bank, Insurance, or Investment Company.

The first thing that pops into my head is, Do They Really Have a Financial Planner?

When most people think of Financial Planning they usually think of someone that sells stocks, bonds, or mutual funds. And maybe even someone that handles their life insurance.

The Financial Planning Association defines it as: "A long-term process of wisely managing your finances so you can achieve your goals and dreams, while at the same time minimizing the risks that inevitably arise in every stage of life."

What most people really have are financial sales people that call themselves Financial Advisors or  Financial Planners.

If your Medical Doctor was compensated by how many Prescriptions he wrote or by how many Prescriptions his patients took, would you still take his advice?

So why do we take our financial planning advice this way?

Financial Planning is a process, not a product.

4 things to look for when seeking a REAL Financial Planner:

1.) Are they a Certified Financial Planner? Go to
2.) What is their process? Planning covers every area of your financial life and real financial planners will be able to quickly explain their process
3.) What conflicts of interest do they have? If they are paid by selling you a financial product you will have to decide if they can really act in your best interest
4.) Will they take on Fiduciary Duty? This means they legally must act in your best interest. Brokers and insurance agents are not fiduciaries.

If you have any questions, go to


Arjun kumar said...

This information is useful and informative .I have a plan to do my financial planning and I get idea with a financial planner to save enough amount for my retirement year and to enjoy wealth in god way.Thanks admin to share this blog.Keep on sharing.

rolekkyle said...

Excellent article