Comments on: Hiring a Financial Planner– Everything You Need To Know

By: FinEngr

FinEngr — Fri, 29 Jan 2010 04:31:36 +0000

Commission & Hourly planners will generally provide an initial consultation for me. It’s a way to meet each other and judge if there’s a good fit. I just happened to be prepared with an onslaught of questions.

This leads into my final point. You may also want to add that going to an hourly planner doesn’t mean that you shouldn’t prepare as much as possible in order to get the most out of your 2-hr session (or whatever time frame). Don’t forget YOU are the one paying for each “uh” and “um” you utter.

By: MD

MD — Thu, 28 Jan 2010 16:08:23 +0000

Fair analysis on the specialist. It’s better to focus your energy on what you’re good at, as opposed to stressing yourself out over complex situations.

As for the second part- Maybe that’s why the planner was free?

By: FinEngr

FinEngr — Thu, 28 Jan 2010 15:32:57 +0000

Answers in reverse order.

Edwin hit the nail on the head. You see a specialist because they specialize in that field. When there’s a lot on the line (your money), not fully understanding the complexities or mistaking regulations can result in costly mistakes.

Only one in particular was a “waste of time” which now seems too harsh a phrase. It wasn’t a complete waste, I did learn a little. The planner focused on things I had no interest in, spoke on things I already knew about, and didn’t provide a clear direction as to my specific tax questions.

By: MD

MD — Thu, 28 Jan 2010 05:43:49 +0000

You absolutely can’t trust a financial planner working on a commission. Some of the investment products that I’ve heard “financial planners” are known to try to sell to naive young people are completely horrible.

Personal finance bloggers may not have all of the answers, but hopefully we have the right questions for you guys. The right financial planner can really help you clear up a sticky situation. On the other hand, the wrong financial planner can set your financial goals back a few years.

By: Edwin

Edwin — Wed, 27 Jan 2010 23:39:35 +0000

To me a financial planner should be well versed enough to come up with things you wouldn’t be able to yourself. For most financial topics you can do plenty of research online and at your local library. The one thing you can’t do by yourself is make connections without having the knowledge. For example maybe you are considering multiple investment choices and doing plenty of research on them. What a financial planner would add is the tax advantages / disadvantages to all of these investment types based on your unique needs.

The most important thing you say in this article is to find out how they are getting paid. A “financial planner” on a commission is just a salesman wrapped in the package of a financial planner.

By: FinEngr

FinEngr — Wed, 27 Jan 2010 12:38:27 +0000

To answer the post sincerely, I have hired a financial planner several times. All of which were free to me, as I am a STRONG advocate of not paying full price (check out my post on it).

I like that you dispel the notion only old people with lots of money require a financial planner. There are many sticky situations that require a little more finesse and knowledge that most of us have (even us PF bloggers!).

Overall, I had mixed reviews. Some were very helpful, some simply steered me in the right direction, and others were actually wastes of MY time.