What to do when Hiring a Financial Planner

When it comes to achieving our financial goals, having a knowledgeable and experienced guide by our side can make all the difference. This is where a financial planner comes into play. A financial planner is a professional who provides personalized guidance and expertise to help individuals navigate the complex world of finance.

However, making the right choice when hiring a financial planner is crucial to ensuring your financial success. Let’s delve into why you should hire a financial planner, when is the right time to do so, and the criteria for selecting the right planner for you.

Why Hire a Financial Planner?

Financial planners are not just for the wealthy; they provide valuable assistance to individuals from all walks of life.

Whether you’re aiming to secure your retirement, optimize your investment strategy, or plan for major life events, a financial planner can offer expert advice tailored to your unique circumstances.

These professionals have a deep understanding of various financial instruments, market trends, and tax implications, helping you make informed decisions that align with your goals.

When Should You Hire a Financial Planner?

The decision to hire a financial planner often arises during pivotal life moments. Whether it’s your first job, you’re getting married, starting a family, or planning for retirement, a financial planner can provide guidance to ensure your finances are on track.

Similarly, receiving an inheritance or experiencing a sudden windfall necessitates careful financial planning to make the most of your newfound wealth. No matter the scenario, a financial planner’s expertise can provide clarity and direction in times of uncertainty.

Criteria for Assessing the Right Planner

Selecting the right financial planner involves careful consideration of various factors. Look for professionals with the requisite qualifications and experience. It is crucial to opt for planners with a proven track record in delivering positive results for clients.

Beyond accreditations, it’s essential to find a planner who listens to your needs, communicates effectively, and understands your aspirations. Consider the following to ensure you conduct thorough due diligence when hiring a financial planner:

  • In-Depth Research: Before making a decision, conduct extensive research on potential financial planners. Look for online reviews, testimonials from clients, and any news or articles related to their professional history. This can give you valuable insights into their reputation and the quality of their services.
  • Interview Multiple Planners: Don’t settle for the first financial planner you come across. Interview multiple candidates to compare their approaches, methodologies, and personalities. This will help you gauge their communication style, commitment to your goals, and overall compatibility.
  • Check for Disciplinary History: Verify if the financial planner has any disciplinary history or complaints lodged against them. Regulatory bodies such as the FSCA and FAIS Ombud provide resources to check if a planner has faced any disciplinary actions or violations.
  • Request Client References: Ask potential planners for references from current or past clients. Speaking directly to those who have worked with the planner can provide valuable insights into their professionalism, effectiveness, and ability to meet clients’ needs.
  • Clarify How They Stay Updated: The financial landscape is constantly evolving. Inquire about how the financial planner stays updated on industry trends, tax laws, and investment strategies. A commitment to ongoing education and staying current is a sign of a dedicated and informed professional.
  • Ask About Communication Frequency: Clear communication is essential for a successful partnership. Discuss with the planner how often you can expect updates on your financial plan, investment performance, and any changes in your strategy. Make sure their communication frequency aligns with your expectations. Effective communication and a good working relationship are crucial for successful financial planning. Ignoring compatibility could hinder progress and lead to misunderstandings
  • Understand the Investment Approach: If investments are a significant part of your financial planning, understand the planner’s investment philosophy. Do they follow a quality or value investment style? Do they prefer passive over active funds? How do they balance risk and return? Ensure their approach aligns with your risk tolerance and long-term goals.
  • Review the Financial Plan Process: Ask about their process for creating and updating your financial plan. A comprehensive financial plan should include goal setting, risk assessment, asset allocation, tax planning, and estate planning. Ensure they have a structured process that covers all your needs.
  • Ignoring Fee Structures: Different financial planners adopt various fee models, including commission-based and fee-only. Transparently understanding the fee structure prevents surprises down the road and aids in evaluating the cost-effectiveness of the services provided.
  • Trust Your Instincts: While qualifications and experience are crucial, your gut feeling also matters. If something feels off during your interactions with a potential planner, it might be a red flag. Trust your instincts and choose someone you feel comfortable and confident working with.
  • Written Agreement: Once you’ve selected a financial planner, make sure to have a written agreement in place that outlines the scope of services, compensation structure, and any other terms. This provides clarity and protects both parties.

By incorporating these points, you can conduct a thorough due diligence when hiring a financial planner. This will empower you to make an informed and confident decision that aligns with you financial goals.

Remember that financial planners operate under a fiduciary duty, meaning they are obligated to prioritize your best interests. It’s important to understand how your financial planner works and how they manage their relationships with clients.


Choosing the right financial planner can significantly impact your financial journey. By understanding the benefits of hiring a financial planner, knowing when to seek their expertise, and assessing them based on credentials and compatibility, you can avoid common mistakes that others make.

Remember, a financial planner is your partner in achieving your financial aspirations, so take the time to research, interview, and choose wisely. Your financial future deserves nothing less.

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