By Nick Britton, AIC
Nick Britton, Head of Training, AIC
I’m sure it wasn’t planned, but it’s rather appropriate that Financial Planning Week coincides with Mental Health Awareness Week. Finance worries can take a huge toll on our mental health, and having a good plan in place can be a great aid to peace of mind.
When it comes to choosing a financial planner, it’s a bit like choosing a therapist or counsellor. Their qualifications, knowledge and experience are all important – but it’s also important that you click with them and feel they understand you.
Here are five questions to help you decide if a financial planner is right for you.
The charging structure might be an hourly rate, a fee per job, or a percentage of your assets. Make sure you understand the fees and have them in writing.
Can you just phone up out of the blue? Are there regular reviews? (The CISI recommends annual reviews as a minimum.) What’s included in the fees? And which people in the firm will you be dealing with?
A long-term relationship is a balance. You should have the opportunity to say how you feel and what your aspirations are, while a financial planner’s job is to explain how they will get you there.
Check if the financial planner holds any advanced level professional qualifications, such as the Certified Financial Planner qualification. The CISI recommends you should opt for a planner with at least two years’ experience in working directly with individuals and planning their financial needs.
A financial planner who describes themselves as ‘independent’ should cover all retail investment products, including investment companies. If they don’t, this should ring alarm bells. Finally, you can check that both the firm and the individual planner you are speaking to are authorised by the FCA. To do this, you can search the Financial Services Register on the FCA’s website.