What is a Financial Planner?
A financial planner is a professional that can help 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 Hawaii Financial Planners
The services provided by financial planners in Hawaii are quite broad. Basically anything that 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 HI financial planners will work with you to build a comprehensive plan that includes all the elements listed above while others focus on 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 Hawaii
There are several things to consider before you hire a financial planner in Hawaii. 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 that you know what it is you need from a financial planner to ensure 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 by the hour. It’s also possible for a financial planner to work off of commissions or a mix 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 Hawaii
You’ll need to make sure that your financial planner is certified to make certain they are knowledgeable and meet ethical standards that were set by official organizations.
There are several certifications for Hawaii financial planners. However, the Certified Financial Planner (CFP) certification provided by Certified Financial Planner Board of Standards, Inc. is well known in the industry. There are a number of designations that FINRA has outlined in their handbook ‘Understanding Investment Professional Designations’.
Before hiring 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 have to be registered with the SEC and/or the Hawaii securities regulator.