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 Massachusetts Financial Planners
The services provided by financial planners in Massachusetts are quite broad. Basically any situation 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 MA financial planners will work with you to put together a comprehensive plan that includes all the elements in the list above while others specialize in just one financial area. Look out for people who call themselves financial planners but only offer a few products that they are likely making commissions off of.
Before Hiring a Financial Planner in Massachusetts
There are several things to consider before you hire a financial planner in Massachusetts. Because financial planners offer such a wide array of services it’s important that you understand just what it is that your financial planner can offer. It’s equally important you know what it is you require from a financial planner to make sure 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 fee while others charge on an hourly basis. 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 conscious of how the financial planner will be compensated.
The Importance of Finding a Certified Financial Planner in Massachusetts
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 a number of certifications for Massachusetts 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 make certain 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 suggestions about investments then they have to be registered with the SEC and/or the Massachusetts securities regulator.