Everyone, it seems, is trying to part you from your money. When shopping for a financial planner, you should know how to pick the professional that best fits your wants and needs. Here are five traits that the best have in common:
They are true fiduciaries
You want someone who looks out for your best interest and puts it above his or her own. Fiduciaries make the right decisions for you, even when it costs them, and they are the people you want on your side.
But doing what's in the client's best interest is broader than matching him or her with the right financial product. Part of a planner's job is finding out what the client wants, even if the client isn't quite sure.
They are transparent about how they get paid
It's critically important to understand how your financial adviser gets paid: by you, by big financial firms for putting clients into certain products, or something in between. The best advisers are clear up front about how they are compensated. And the best scenario is that they are compensated by you, not the big financial firms.
They focus on motivating you
The best financial advisers not only develop a financial plan for you, they also help you stick to it. They energize and motivate you to meet your goals. The best financial plan in the world won't matter unless you have the determination to see it through, and that means a long-term commitment measured in years.
