The best financial planners share these five traits

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.

They are clear about your relationship

When you hire a financial adviser, you are looking for someone who is going to be with you for years, so you want to be absolutely clear on the relationship. Whom will you work with? How often will you meet? How will you pay the adviser? These are all questions you need to answer. The best advisers are interested in your welfare and will clearly detail what you need to know before you decide.

They shape a plan that meets your needs

The best advisers listen to you and shape a financial plan around your requirements. That means an adviser must actively listen and empathize with the client, structure a plan around those needs and then show how the plan fits together. Above all, find an adviser who wants to help you meet your goals even if that means helping you find out what your goals are.

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