It is important to know that a financial planner, or a financial advisor, is usually compensated in one of three ways: those that charge an up-front fee to evaluate your financial position and to develop a plan for you to carry out on your own, those that get paid only through the commissions on the stocks, insurances, etc. that they sell you, and those that get paid both ways. Your needs and goals can help determine which of these types of financial planners is best for you.
One of the best ways to find a good financial advisor is to ask for referrals from people you know and trust. Another way is to find an advisor in your area is to visit www.napfa.org. You should also ask yourself how comfortable you are handling your own finances - do you simply want someone to tell you whether or not you are on the right track for your long term goals or do you prefer someone who can both develop and implement a plan for you.
When you do meet with a financial advisor you should ask a lot of questions. For example, how exactly is he/she compensated, what qualifies him/her to be a financial planner, can you get references, and will you be able to carry out your personalized financial plan yourself if you want to. Be sure to get clear, specific answers to these qestions and any others you may feel need to be asked. In my experience, I was not forward enough in asking these questions and I ended up unhappy with my financial planner. I found myself wishing I had interviewed several before choosing one.
If you decide you want to see a financial planner it is important to research and choose one carefully. Only you know what your needs are and what your comfort level is.
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