Qualities to Check for Before Hiring a Financial Planner

A Closer Look at 6 Details to be Analyzed Before Appointing a Certified Financial Planner

If you are seriously looking into the option of hiring a certified financial planner (CFP) then it will be important to check whether the CFP is competent enough to manage your requirements. As such, we will be examining few of the qualities a CFP should have to provide the right type of financial advice.

Qualities a Certified Financial Planner Must Have

Quality #1: Objectivity

certified financial plannerRecommendations provided by certified financial planner must be as per specific requirements you have. Moreover, CFP should make those recommendations only after properly examining your situation. Additionally, the CFP you hire should be bold enough to tell you that financial goals you want to achieve are not possible due to your present financial position.

Quality #2: Integrity

The CFP should be capable enough and have required level of professionalism to help you accomplish your financial goals. A certified financial planner should also take needed steps to build trust of his or her clients. In addition to it, a CFP should take steps for fulfilling your financial goals before thinking about his or her personal gains.

Quality #3: Clarity

CFP must provide detailed information about services he will be providing and also make you aware of cost you will have to bear for the same. More importantly, CFP should share details about risk associated with financial products he will be recommending and also about any likely conflict of interest that is going to arise due to those recommendations. Such conflict of interest generally arises when CFP gets benefited personally or financially when any particular financial product gets sold or when strategies suggested by CFP are implemented. 

In general terms, the certified financial planner should share details of earnings he will have from sale of certain financial products.

Quality #4: Diligence

An experienced CFP will take required steps to help you understand how you will benefit by using his or her services. Additionally, the CFP will try to fully understand the financial goals you have in mind before any work is carried out on your behalf. After CFP is confident that he will be able to meet your needs, he will be recommending certain financial products which will be suitable for you. Moreover, these products will be closely analyzed to make sure they will be right for you before they are recommended.

Quality #5: Compliance

Any experienced CFP should not offer investment advice or stock brokerage if he or she does not have the license for the same or if the CFP is not qualified enough for the task. As for example, a CFP should not function like a broker/dealer if he or she is not holding license for the same.

Quality #6: Privacy

Certified financial planner must take necessary steps to maintain privacy of sensitive information you will be sharing. However, if it becomes necessary to share such information then it should be done for business purpose only and that too after getting your approval.


As we can see there are several things to be checked and by performing these checks you will be able to find the right CFP.