What is a Financial Planner?
A financial planner is a professional that helps people manage various aspects of their finances. They will usually draft a financial plan for their customers to follow with the goal of improving the client’s financial security now and in the future.
Services Offered by Illinois Financial Planners
The services provided by financial planners in Illinois 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 IL financial planners will work with you to construct a comprehensive plan that includes every one of the elements listed above while others specialize in just one financial area. Be aware of 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 Illinois
There are several points to consider before you hire a financial planner in Illinois. Because financial planners offer such a range of services it’s important that you understand exactly what it is that your financial planner can offer. It’s equally important you are aware of what it is you require 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 by the 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 conscious of how the financial planner will be compensated.
The Importance of Finding a Certified Financial Planner in Illinois
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 Illinois 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 hiring a financial professional, ask about their certifications and then check with each organization to ensure they in fact earned the certification and that 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 suggestions about investments then they must be registered with the SEC and/or the Illinois securities regulator.