Evaluating Your Financial Planner

If you’re currently behind on your finances, you may have sought help from a financial planner. You probably thought that you couldn’t handle your financial troubles on your own, and you needed the help of a trained professional to give you the financial advice you need to help you get things sorted out.

There’s No Shame in Getting Help

There is nothing wrong with seeking the help of a financial planner when you are trying to get back on your feet financially. Recognizing that you need help is the first step in making a chance with your problems.

You may have even sought out a financial planner because you believe they can help you see a boost in your investments. Financial planners are hired for a variety of reasons.

Many financial planners specifically specialize in helping people chart a course towards retirement. They claim to be able to help people find the best possible solutions to their financial concerns.

Make Sure You Can Trust Them

However, it is important to keep in mind that financial planners are trying to make a living as well. We as consumers need to be careful and be certain that we can trust our financial planner before we continue paying them for their services.

There are certain red flags you should be aware of when it comes to financial planners. If you notice or see any of these red flags, you should seriously consider switching financial planners.
Here are a few of these red flags so you can be informed and prepared to know if you can trust your financial planner. If your financial planner has a complicated history in regards to his or her career, then you should be wary.

Do They Switch Jobs A Lot?

If they have switched jobs often, it may indicate that they are not good at working with higher management and they may not be the best people to work with. If you notice a lot of turnover among a certain firm’s advisers, than you may want to consider going with a different firm.

Are They Interested in Your Personal Needs?

Another red flag to look out for is if your financial planner does not seem very interested in looking at the specific details of your situation. If they think they have a solution very quickly and without really knowing what’s going on with your finances, you may want to get a different planner.

These types of planners are usually just trying to make money rather than really trying to help you with your finances. They want to make you believe they know what they’re doing, so you don’t have to worry about how they’re doing it.

However, you and your planner are supposed to be working together on your finances, so it is very much your business what your planner is doing with your finances. If you notice that your planner has been operating with a one-size-fits-all attitude, you may want to seek help elsewhere.

Another Gimmick?

Another possible red flag is if you notice that your planner has been introducing a gimmicky product to you each time you meet with him or her. If they do not seem genuinely interested in helping you get back on your feet financially, you should be wary.

If your financial planner fails to specifically define a target return amount with you within your first couple of meetings, this is not good. A financial planner should always set up a specific target return with you so you are aware of what’s going on.

They should also talk about a standard deviation of this return with you as well. If they fail to do either of these things, than you should definitely notice.

There Should Be Constant Contact

Your financial planner should also be constantly updating you about what is happening with your finances. If they fail to contact you for an extended period of time, you should consider getting a different advisor.

The state of your finances is rapidly changing, and so you should be meeting with your advisor often to discuss how you need to shift your strategies and what changes you should be making. If you feel that your planner is not positioning you to get good returns in good markets, then you should probably get a different financial planner.

You should also pay attention to how you are interacting with your financial planner. If the relationship is polite and cordial and they seem very eager to help you, then this is good.
But if they are rushed and don’t seem to have the time to meet with you, then this is not good. You deserve a planner who has your best interests in mind and will work with you to make your dreams a reality.

That’s what you’re paying them to do, after all.

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