Question 1

How much money should you have to see a financial planner?

Accepted Answer

You don’t need a specific amount to see a financial planner; many work with clients of all income levels. Some planners require minimum assets (often $50,000 to $500,000), but many offer hourly or flat-fee services for those without large portfolios. If you have financial goals, complex planning needs, or questions about retirement, it may be worth consulting one, regardless of assets.

Question 2

What does a financial planner do?

Accepted Answer

A financial planner helps clients create comprehensive financial strategies based on their goals, covering areas like budgeting, investments, retirement, insurance, and estate planning strategies. They assess current financial situations, recommend strategies for growth and financial freedom, and provide guidance on specific financial decisions. Financial planners also monitor progress and make adjustments as life and goals evolve.

Question 3

How often should I meet with my financial planner?

Accepted Answer

Most people meet with their financial planner annually to review goals and update strategies. Major life events—like marriage, a new job, or a large purchase—might require additional meetings. If you’re closer to retirement or have complex investments, semi-annual or quarterly check-ins might be beneficial.

Question 4

What qualifications should I look for in a financial planner?

Accepted Answer

Look for credentials like Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), or Certified Public Accountant (CPA) specializing in personal finance. These indicate rigorous training and adherence to ethical standards. Experience, client reviews, and a solid understanding of your specific needs are also essential factors.

Question 5

What is a fiduciary financial planner, and why is it important?

Accepted Answer

A fiduciary financial planner is legally required to act in the client’s best interest, avoiding conflicts of interest and prioritizing the client’s needs. This is important because it provides transparency, aligning the planner’s recommendations solely with what benefits you, rather than any hidden incentives or commissions. A fiduciary in an advisory relationship strives to build trust and helps aim to ensure your financial goals are genuinely supported.

Financial Planning Terms & FAQs