How to hire a financial planner

Optometric Management, Sep 2000

QUESTION: PII be graduating this year, and Id like to consults financial planner How do I find a good one?

ANSWER: First, decide exactly what you want from a financial planner-advice about debt management, tax planning, starting your own practice? Next, ask colleagues, family and friends for recommendations, says Bill Nolan of Williams Consulting Group in Lincoln, Neb. Industry associations such as the National Association of Personal Financial Advisors, are also good sources.

Then, call some planners and ask about their experience - you want a minimum of 3 years - and areas of expertise as well as licenses and certifications.

Next, schedule a meeting with those who look promising and discuss:

Financial philosophy. A planner may be aggressive or cautious. Does this match your philosophy?

Masterplan. Decide if you want an all-inclusive plan or one that concentrates only on specific goals. Find out how the planner would proceed.

Clientbase. Ask for a profile of typical clients and a sample financial plan to give you an idea of his usual approach and how you might fit in.

Fees Costs can be fee-based (hourly, flat or percentage of assets, commission-based or a combination. Be wary of anyone paid only by commission.

Your costs. Ask for an estimate. An hourly rate of $100 or less is average.

References. Planners should be prepared to give you names of long-term clients and professional associates.

Insurance. Make sure the firm or the individual financial planner has liability insurance.

Once you've found an advisor who's right for you, get a written agreement that details the services to be provided.

Here's a final word of advice from Bruce Mailer, president and CEO of The BSM Consulting Group, Incline Village, Nev.

"You can find people to guide you," he says, "but ultimately you need to make the final decisions. Learn about your options and be sure you understand what's happening with your money. Don't just assume your advisor knows what he's doing. Without education you're simply prey."

For more information, visit the Certified Financial Planner Board Web site at www.cfp-board.org and InvestorGuide at www.investorguide.com.