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 improving the client’s financial security now and in the future.
Services Offered by Maryland Financial Planners
The services offered by financial planners in Maryland 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 MD financial planners will work with you to construct a comprehensive plan that includes all the elements in the list above while others specialize in 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 Maryland
There are several points to consider before you hire a financial planner in Maryland. 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 that you know what it is you require 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 per hour. It’s also possible for a financial planner to work off of commissions or a combination 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 Maryland
You’ll want to make sure that your financial planner is certified to make sure that they are knowledgeable and meet ethical standards which have been set by official organizations.
There are many certifications for Maryland 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 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 advice on investments then they must be registered with the SEC and/or the Maryland securities regulator.