Drafting your own financial plan can be a daunting task. Typically, people do not have the experience, time or knowledge to investigate the complexities of financial planning and/or the products available. Finding a suitable financial planner can be just as trying, however, the process can be simplified by considering the following points:
- Independence – The best type of advice is independent advice. Independent financial advisors are driven by their clients’ needs and draw distinctions between the various product suppliers and their associated benefits. There are no conflicts of interest resulting in objective and unrestricted advice. Independent financial planners are also not incentivized to advise on a single product supplier only. They act as voice of reason and will be able to advise on what is best for the client.
- Trust – It is essential that you find someone that you are comfortable dealing with. Trust, however, is only earned over time and so you may need to rely on recommendations from friends or family that have experience with a particular advisor. Before taking any advice, do some research to obtain insight into the company and the financial planner that you intend to consult with.
- Qualifications – Ensure that your financial planner has the necessary qualifications that match your needs. Belonging to professional bodies such as the Financial Planning Institute (FPI) guarantees that your financial planner complies with experience, education, examination and ethical requirements.
The path to finding financial freedom requires a well thought-through financial plan that should be drafted by a professional. If you are interested or would like to find out more about financial planning, please contact us.
Stephan Steinmann CFP®