Here are 4 points to help you identify what to look for in a Financial Planner:
What to look for in a Financial Planner
1. Look for a Certified Financial Planner (CFP®). CFP®’s are governed by the FPSC, (the governing body for Financial Planners in Canada). It is considered to be the standard of excellence in Financial Planning. Many professionals may call themselves “financial planners,” however, CFP® professionals have completed extensive training and experience requirements and are held to rigorous ethical standards.
2. Look for a true fee only Certified Financial Planner. True fee only planners do not sell any product whatsoever or receive any referral fees. In this way they are able to provide 100% unbiased advice along with recommendations made with your best interests in mind.
3. Does the final output consist of fully customized recommendations? Arguably, a final report which outlines how to implement your plan is even more important than the plan itself.
4. What kind of software is used? How robust and sophisticated is it? An example would be, does it use average tax rates or does it calculate the exact federal and provincial taxes owing based on taxable income, applicable credits and tax deductions for each and every year until life expectancy?