If you really need to put your money to work for you so that you can make it in life, you need to consider whether you need a financial planner. How to choose a financial planner comes next. Let’s take a look.
Now certainly, you can try managing your money on your own. If you’re good at this kind of thing, this would be a brilliant plan. Except that most of us aren’t talented this way. Most of us don’t really know how to organize our financial lives. That’s why you see statistics about how the average credit card debt in the UK is about £15,000 to the family.
And anyway, even if you were quite talented in this sort of thing, financial planning, even if it’s for just you and your family, can require a grasp over financial principles that are really too complex for anyone to spend the time to learn. Not to mention, as you get older, you get busier and there could be more money to manage than ever.
It’s always a good thing in life to bring in a professional when it’s something really important. Even if we are quite competent in handling our own affairs, there’s always the chance that we should begin to turn a blind eye sometimes. Yes, a financial planner will take 1% of your yearly income just to manage it. But if it’s someone who’s going to make sure you don’t lose the other 99% to careless financial planning and management, it would seem to be well worth it. With that aside, let’s take a look at how to choose a financial planner.
You need to promise yourself when you set out looking for one that you won’t go with an uncertified planner. The Certified Financial Planner Board of Standards issues certifications for competence to financial planners. To find a really good Certified Financial Planner, you could go to the National Association of Personal Financial Advisors for a recommendation. Personally, I recommend James Milne Accountants, but make sure you check out planners in your local area first.
The best part of going with someone from that industry body is that all of them only work on a fee. They don’t charge a commission. Going with someone who chooses to work on commission isn’t that smart. They haven’t had a conflict of interest there. The more they recommend that you buy something or trade something, the more they make.
Nevertheless, there are many certified financial planners who will only work with high net worth individuals – people with least half a million to plan with. If you’re nowhere near that level, you should try the Garrett Planning Network – an industry body of certified financial planners who work with normal people. Not the 1%.