28/04/2022
Choosing a financial planner - checklist.
Here’s a checklist when looking to hire a financial planner if this is the route you want to take at some point.
I’ll make a document out of this in due course when I can.
Financial Planning is a different kettle of fish than arranging investments. It might include it, but it’s comprehensive and and probably based on fixed fees.
You may consider % where investments are involved if you want to recognise the additional returns that your planner helps you keep *temperamentally* in down times and up? Again, I think it's nice to have the option of fixed fees or %. Again, this is separate from the planning.
If I were in your shoes, here's what I would do, knowing what I know, just to whittle it down a bit:
If screening by Phone:-
A. Ask for a 10 minutes now or a phone appointment to determine whether or not you should meet for a longer exploratory meeting by Zoom.
B. Ask, "What do you need to know from me to determine if I am a possible match for your services?" (Trusted advisers will have standards, or specialise in helping similar types of people. If you closely match their ideal client profile and their philosophy, continue. If not, politely end the conversation and try someone else. If they say, "That's not really important. Tell me about yourself ..." or can't answer the question, you're talking to a salesperson, not a trusted adviser).
C. Ask, "What do you require from us in a first meeting?" Really good advisers would expect you to provide documents relevant to that stage and bring your partner.
D. Say, "My next question is about your process. What would be the steps we'd take in our first meeting?" (If you're happy with the answer, continue. If they won't or can't answer, or it's vague, you're dealing with a sales person, not a trusted adviser).
Some further pointers:
1. Choose a Certified Financial Planner Professional with the CFP designation. Not only is this a Level 7, Masters qualification, you'll get the right mindset (but subject to 2, below)
2. Choose a CFP who also *practices* comprehensive financial planning every day, as part of their process: it's what they do in the real world.
3. Choose a CFP who is also authorised to advise on regulated investment products by the FCA as an Independent Financial Adviser (IFA), not one tied to a panel of companies or area ("Restricted Advice).
4. In relation to investments, is their philosophy evidence based, low cost? Yes? Pass Go.
5. Do you get the sense that they see YOU as the client, not just your money? Yes? That's what you want. If you want your own platform, they don't mind.
6. Do they charge in a way that works for you - will they offer a flat fee for a financial plan for example?
7. Do they use the first meeting to talk about themselves or are they keen to make sure you get value from it whether or not you become a client: they listen to you and your issues?
8. Do you get the sense that they would genuinely value your business, but not need it? They are more interested in fit and will have no problem directing you elsewhere if necessary for your benefit.
9. Do they have a structured process for creating a comprehensive financial plan and can tell you what it is?
10. Do they ask you to provide documents to be accurate (but not show until you're happy)?
11. Do they inspire you in a positive way?
12. They won't be talked into just selling you a product - even if you insist.
13. They're candid, yet polite. They will tell you the truth no matter what.
14. They will talk to you about what you have a right to expect from them and what they have a right to expect from you. They will tell you if they cannot meet your expectations or if they are unrealistic, seek modification upfront or direct you to someone who might meet them. They will check in to ask if expectations are being met or missed.
Hope that helps.
