What is a Financial Planner?
A financial planner is a professional that can help people manage various facets of their finances. They will 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 New Mexico Financial Planners
The services provided by financial planners in New Mexico 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 NM 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. 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 New Mexico
There are several things to consider before you hire a financial planner in New Mexico. Because financial planners offer such a range of services it’s essential 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 need from a financial planner to ensure 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 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 New Mexico
You’ll need to make sure that your financial planner is certified to make sure that they are knowledgeable and meet ethical standards that were set by official organizations.
There are many certifications for New Mexico financial planners. However, the Certified Financial Planner (CFP) certification supplied by Certified Financial Planner Board of Standards, Inc. is well known in the profession. 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 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 must be registered with the SEC and/or the New Mexico securities regulator.