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Financial Planning


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September 15th, 2020

What do the Best Financial Planners Have in Common?

Now that you understand the importance of working with a financial planner, the next step is finding the best option out there.

The greatest Financial Planners have five shared traits.  

  1. They follow the fiduciary standard. The client's advisor must be willing to put the needs of their client above their own. Advisors who act in a fiduciary capacity have a legal and ethical duty to act in the client's best interest.
  2. They are transparent about their costs and how they are compensated. Many believe that a comprehensive fee-only Financial Planner operating in a fiduciary capacity is the best option.  These Financial Planners charge a flat fee and do not earn commissions from any investment or product sales.  Although the sticker cost is more transparent, it is likely they are the same cost or cheaper than a commission-based advisor.
  3. They motivate their clients. The best Financial Planners not only create investment ideas, but they also motivate their clients to keep on the right course. It is too often the case that a solid plan is never fully implemented because the clients lack the ability to see the value. It is crucial the Financial Planner is able to energize their clients.
  4. They express their role clearly. It is vital the Financial Planner is absolutely clear about their relationship with the client. The client must know who they are working with, when they should expect the advisor to be available, and how much they should be paid. The best Financial Planners will offer their clients a pre-engagement disclosure, so the investor knows exactly what their relationship with their Financial Planner entails.  
  5. The plan is shaped by their client’s interests. The best Financial Planners shape their clients’ portfolios and create a plan that will support the unique, individual needs of the client. The faster the Financial Planner can decipher the client’s specific situation, the more successful the relationship will be.  

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