| Choosing a financial planner is a very important | | | | 3. Characteristics |
| decision. Who will you trust to handle your life savings | | | | - What is your investment philosophy? |
| and plan your financial future? The fact that | | | | - Do you focus on domestic markets, foreign market |
| someone claims to be a financial planner does not | | | | or both? (Answer should be both) |
| qualify him or her to handle your money. They must | | | | - What is your specialty? Your strongest area? |
| have the proper certification, experience and | | | | (Global portfolio management, no load mutual funds, |
| knowledge. | | | | stocks, bonds etc) |
| The Four Cs of choosing a financial planner | | | | - How do you view risk and how does your |
| 1. Credentials | | | | philosophy fit my risk tolerance? |
| - What certifications, college /university degrees and | | | | 4. Customer service |
| experience does he/she have? | | | | - What services does your firm offer? |
| - How many clients or how much money does he | | | | - How accessible will you (the agent) be? |
| she handle? | | | | - Will you review the funds last 5 to 10year |
| - Make sure the planner is registered with the | | | | performance in the prospectus? |
| Investment Dealers Association in your area or | | | | - What has been your year-to-year investment |
| Certified by a Government body | | | | performance? |
| 2. Compensation | | | | - What was you worst year? Best year? And why? |
| - How are you compensated? Flat fees, salary or | | | | (Look for defensiveness or humility after raising this |
| commission? (Beware of those who earn big | | | | question, it reveals personality type) |
| commissions for placing you in high risk funds) | | | | - Do you offer financial planning, money management |
| - Are there any hidden underwriting fees with my | | | | or both? |
| investment fund? | | | | In conclusion, a financial planner works for you, and |
| - Will you explain all the cost involved with each | | | | should be compatible with your personality, risk |
| investment? | | | | tolerance and financial goals. Make sure that your |
| - What is the cost of liquidating or canceling my | | | | hard earn money is in good hands. Interview potential |
| account with your firm? (Good to know, if you | | | | planners, ask for references and call at least 3 of |
| decide to switch funds or investment companies) | | | | those references. |