Have a flashback of days of adolescence, best period of life, when one enjoy every moment to the fullest and spend money recklessly because at that time we are blessed with financial protectors (parents and guardians) to rely on. However, imagine the moment, when nature will apart us from our protectors, when we will be grey, isolated and we be left all alone to face this mean and sardonic world. For those days, which are devoid of a draught, one need to plan and for that planning we need a financial planner who can help us with retirement planning services.
At this situation the worst thing is, market is flooded is with these financial planners, it seems that financial advisers are everywhere, trying to make their business out of ours. Therefore, how to choose one is the biggest question and here are some clues for the same:
Do check whether he is a green pea or expert and qualified: undeniably, handling finance and predicting financial future is not a fortuneteller job, who sit in front of a glass ball and tell you things. This section needs skills and expertise. Before betting on a horse, do check is it safe or not, do check whether he has CFP credential or not? Nevertheless, it is not only CFP that guarantees everything one must check the expertise level of the planners, because as a survey there are 40000 planners with this accreditation. One can also check the Personal financial specialists (PFS) and chartered financial consultants (ChFC) status of the planner.
Ask him, what about his commission: this question will enable a seeker to understand, how much commission; he will be pulling out from the deal. If he is a commission based financial planners, chances are high that he will dupe you in comparison to one who works on fees basis.
Check his intention: It is always advisable to speak to an existing policyholder before visiting a financial planner. This will help you to identify whether your interest matters to that financial planner or he is just after his own commission. In the latter case, he will for sure sell you an unwanted and unsuited high priced policy.
Is he farsighted or with limited vision: when you visit a planner, you must tell him entire financial status and situation including your future projections. Then try to evaluate, how a planner deals with the situation, is he roaming around one aspect or is he capable enough of exploring horizons. This check will help you to understand, whether the planner is using his experience or just the formal training he obtained through a crash course.