Harris: Finding a qualified financial planner

By Charlestien Harris, Retired Financial Coach at Southern Bancorp

National Financial Planning Month is a great time to seek expert advice from a certified or qualified financial professional. However, finding the right person can be challenging if you’re unsure where to start or what to look for. Working with a certified professional can mean the difference between financial success and financial hardship. A financial planner offers a holistic and strategic approach to managing your finances, helping you see the bigger picture.

Here are a few tips to help you find a credible financial planner:

1. Verify Certification and Professional Designations
   Many financial professionals are members of organizations that authorize the use of specific professional designations. These titles or certifications indicate that the individual has met established standards of expertise and qualification in their field.
2. Start with Your Goals
   A good financial planner begins by understanding your goals. A great planner will help you navigate the sometimes difficult process of setting goals that align with both your current and future financial needs. Financial planning requires organizational skills that support your ability to stay on track and achieve your objectives.
3. Understand the Compensation Structure
   Fees play a significant role in choosing a credible financial planner. Consider working with a “fee-only” planner, who is compensated directly by clients through a flat fee, hourly rate, or a percentage of assets under management (AUM). This approach helps minimize conflicts of interest and ensures unbiased advice. Try to avoid “fee-based” planners, who may receive both client fees and commissions from product sales.
4. Know the Ethical Standards
   It’s important to understand the difference between fiduciary duty and the suitability standard. A fiduciary is legally obligated to act in your best financial interest at all times. In contrast, advisors who follow the suitability standard are only required to recommend products that are appropriate for you, even if those products yield higher commissions for them.
5. Ask Key Questions During the Interview Process
   Schedule initial “discovery meetings” with two to four advisors to make informed comparisons. Ask the following questions to determine if they’re the right fit for your needs:

• What are your qualifications and certifications?
• How are you compensated, and what is your total fee structure?
• What services are included in your fee?
• Who is your typical client?
• What is your experience working with clients in similar situations to mine?
• How will we work together, and how often will we meet?
• Can you provide references from current clients?
• Can you put your terms, conditions, and our agreement in writing?

This is not an exhaustive list, but it’s a good starting point. You can also create your own list of questions to help you make a well-informed decision.

When selecting a personal financial planner, consider their qualifications, experience, fee transparency, services offered, client references, fiduciary responsibility, communication style, availability, specialization, use of modern technology, and regulatory compliance. With this information, you’ll be better equipped to find the right financial planner for your needs.

For more information, you can email me at charlestienharris77@gmail.com or write to me at P.O. Box 1825, Clarksdale, MS 38614.

Until next week – stay financially fit!

Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.