Anybody use a financial planner?

I have a financial planner that calls me every couple of weeks trying to get my business. Frankly I've never used one but just don't have the time to manage everything myself anymore. I get the sense he wants to sell me a bunch of mutual funds and insurances based on his calls. What are your thoughts on your planners? What questions would you ask a planner courting you?

Re: Anybody use a financial planner?

In my experience, they like to sell you stuff that benefits them. At the moment, I hope you have some oil company stock

Re: Anybody use a financial planner?

A good financial planner will have a questionnaire to find out what your financial goals and style are.

The guys who call with an answer in search of a question ought to be selling used cars.

My FP searches for options that meet my criteria for diversification and and risk tolerance.

Re: Anybody use a financial planner?

They can be very useful, or they can be exactly what you suspect this one to be. If you think you might benefit from the services of a CFP and you have a spare half hour sit down with him and find out which is the case. All it will cost you is a little time.

Re: Anybody use a financial planner?

They can be very useful but not the ones that are calling you every two weeks looking for your business. If you feel you can use one ask you friends who they use and go one of them. If you don't feel comfortable with direction he/she wants send your money go to another one.
One key item that should be considered very carefully is whether they sell a product they represent or are totally independent to sell anything from any company.

Re: Anybody use a financial planner?

If you do not know this person, I would be leary about using him. Check with family or friends that may be using one and you may want to go with that person.

Re: Anybody use a financial planner?

My CFP calls me about every week, sometimes more. We have developed a good friendship over the years and I value his input and advise. He works for me, not for his company or for himself. He advises me on what to do, and many times I will have an idea that I will bounce off his head. He will tell me I am looney, or that is a good idea and if he can use the idea with others. No matter what he says, I have the final answer.

We understand each other, and each others roles. He makes money when I actively trade, or when I buy into a managed account. He doesn't make money when I do nothing, but he knows if he tries to hard to sell, I can go elsewhere, or do it myself with TDAmeritrade, Charles Swab, etc. I do like the human element of dealing with a trusted friend, and over the years he has made some mistakes, but he has also pointed me towards some great gains. In the end, his fees have been worth the "relief factor" in knowing I was not going it alone.

He also understands that I have a discount brokerage account that I also use, and he is willing to give me input and ideas for that, because he knows the happier I am and the better I do, the better he does. And several of his clients are a direct result of my recommendations. So, in the end we all win.

But if this CFP isn't willing to sit and talk, or all he wants is to sell, then run away from him. And make sure you have plenty of known references before agreeing to anything. Just my thoughts ...

Re: Anybody use a financial planner?

Leave that one alone and find one that has a trusted reputation with people you know if you really want to use one.
My 2 cents.

Re: Anybody use a financial planner?

I have. The last one took to me close to financial ruin. He was/is a freind. I don't hold anything against him.

My new one only looks at the dollars. All math. He has done me well.

Re: Anybody use a financial planner?

JB said:

A good financial planner will have a questionnaire to find out what your financial goals and style are.

The guys who call with an answer in search of a question ought to be selling used cars.

My FP searches for options that meet my criteria for diversification and and risk tolerance.

Click to expand...

I have two and they do what JB describes.

You should pick your FP, not him picking you. I don't think you can go wrong with a major company such as Edward Jones, etc.

One way to weed out the crooks from the honest one's is to ask them if they are a fudiciary. A fudiciary is commited to working in your best interests not his. And if your investments do well so does he.

Re: Anybody use a financial planner?

I have been dealing with the same financial planning company since 1977. When I move, I get a call from my new planner in my area for a face to face. When I first started in 77, they asked us a bunch of questions about what we wanted in the future. IE, paid home, college educations, travel, etc. Our needs changed over the years and so did our investments. I depend on them to advise. They are worth the money they earn. When I make money, they do to.

BTW, I too was a family financial planner at one time and still keep my finances with the same company...

Re: Anybody use a financial planner?

DECK SWABBER 58 said:

I have two and they do what JB describes.

You should pick your FP, not him picking you. I don't think you can go wrong with a major company such as Edward Jones, etc.

One way to weed out the crooks from the honest one's is to ask them if they are a fudiciary. A fudiciary is commited to working in your best interests not his. And if your investments do well so does he.

Click to expand...

I agree. We've been with our fudiciary for about ten years and he's done well at growing wealth and protecting us during downturns.

I recommend getting with a good fudiciary, but there is one thing that I learned many years ago. Don't put you're money in anything that you couldn't explain to a twelve-year old. Exaggeration maybe, but some insurance salesman can sell bad "whole life" policies to the point you don't have a clue where your money is going. Keep it simple.