What is a Financial Planner?
A financial planner is a professional that helps people manage various aspects of their finances. They'll usually draft a financial plan for their customers to follow with the goal of increasing the client’s financial security now and in the future.
Services Offered by Colorado Financial Planners
The services provided by financial planners in Colorado 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 CO financial planners will work with you to build a comprehensive plan that includes all of the elements in the list above while others specialize in just one financial area. Look out for people who call themselves financial planners but just offer a few products that they are likely making commissions off of.
Before Hiring a Financial Planner in Colorado
There are several points to consider before you hire a financial planner in Colorado. Because financial planners offer such a wide array of services it’s essential that you understand just 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 thing to consider is how the financial planner will be paid. Some financial planners charge a flat fee while others charge on an hourly basis. 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 conscious of how the financial planner will be compensated.
The Importance of Finding a Certified Financial Planner in Colorado
You’ll want to make sure that your financial planner is certified to make certain they are knowledgeable and meet ethical standards which have been set by official organizations.
There are many certifications for Colorado financial planners. However, the Certified Financial Planner (CFP) certification provided by Certified Financial Planner Board of Standards, Inc. is well known in the marketplace. There are a variety 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 they are still in good standing. You may also want to see what the experience and education requirements are for receiving the certification.
If a financial planner offers information on investments then they should be registered with the SEC and/or the Colorado securities regulator.