What is a Financial Planner?
A financial planner is a professional that helps people manage various facets of their finances. They'll usually draft a financial plan for their clients to follow with the goal of improving the client’s financial security now and in the future.
Services Offered by Arkansas Financial Planners
The services provided by financial planners in Arkansas are quite broad. Basically whatever could possibly affect your finances can be managed by a financial planner. Financial planner’s expertise includes:
- Estate planning
- Taxes
- Savings
- Investments
- Insurance
- Retirement planning
Some AR financial planners will work with you to build a comprehensive plan that includes every one of the elements listed above while others focus on just one financial area. Be aware of people who call themselves financial planners but offer only a few products that they are likely making commissions off of.
Before Hiring a Financial Planner in Arkansas
There are a number of points to consider before you hire a financial planner in Arkansas. Because financial planners offer such a huge selection of services it’s essential that you understand exactly what it is that your financial planner can offer. It’s equally important you know what it is you need from a financial planner to make certain they have the expertise you’re looking for.
Another factor to consider is how the financial planner will be paid. Some financial planners charge a set amount while others charge per hour. It’s also possible for a financial planner to work off of commissions or a mixture of fees and commissions.
Before you hire a financial planner you must be fully aware of how the financial planner will be compensated.
The Importance of Finding a Certified Financial Planner in Arkansas
You’ll need to make sure that your financial planner is certified to ensure that they are knowledgeable and meet ethical standards that were set by official organizations.
There are several certifications for Arkansas financial planners. However, the Certified Financial Planner (CFP) certification supplied by Certified Financial Planner Board of Standards, Inc. is well known in the profession. There are a number of designations that FINRA has outlined in their handbook ‘Understanding Investment Professional Designations’.
Before employing a financial professional, ask about their certifications and then check with each organization to make sure they in fact earned the certification and that they are still in good standing. You may also wish to see what the experience and education requirements are for receiving the certification.
If a financial planner offers suggestions about investments then they should be registered with the SEC and/or the Arkansas securities regulator.