Panning on hiring an expert to help with your finances? It is understandable if you find yourself in a position where you are undecided on how to proceed. Making a rash decision and hiring the wrong coach can be detrimental to your financial situation. Here are some tips on what to look for when hiring a financial coach.
A simple check online or on the directories will reveal a ton of qualified men and women with impeccable credentials. However, the decision to pick a financial coach touches on your immediate life and future. Therefore, there will be either good or bad consequences on whichever pick chosen.
Look at the Form ADV
Begin by scrutinizing the financial advisors form ADV. This is the document that they file with the SCC. It contains any information you would like to know about the firm.
What are Their Designations?
This gives precise details of the educational background and areas of specialty. The top recommended financial designations are certified financial planning, Chartered financial consultant or the Certified Public Accountant. There are other designations out there. However, these are key, and either must be present.
Level of Education and Experience
Is your financial planner in a position to disclose some of their past advisory work and the results witnessed? Maximum transparency is always a good sign. This gives you an opportunity to go on a fishing expedition to some of their previous clients for testimonials.
What is Their Approach?
Find out the depth at which their financial consultancy goes into. How comprehensive is the financial planning? If they do not meet what your expectations were, then there is no need for taking the communication further.
Area of Specialization
Does the financial coach have any level of specialization that directly applies to your situation? If this is so, it sets you in a good position as they can directly relate to your case without much explanation. Besides, they might already have a manual for success that worked previously.
What Type of Clients do They Work With?
Inquire from the financial coach what their preferred client demographic is. Do they usually work with young, older or middle-aged groups? This is important as the financial coaching for millennials is very different from that of the elderly. The focus on the young will be very different and riskier compared to the elderly who are more focused on security.
What are the Minimum Requirements?
Is there a certain necessary income bracket you can operate in? Must you have assets that are investable? Does the financial advice require a net worth disclose? Are there are minimum fee charges? Get the answers to these questions from the start.
Check out Their Membership Credentials
Look up your planners registered financial planning memberships. Some of the top organizations are NAPFA of the financial planning association among others. Such bodies ensure their members remain up to date with the latest changes in financial planning and maintain professional ethics among members. If the financial coach is not a member of any organization find out why that is so.…