What is a Financial Planner?
A financial planner is a professional that helps 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 New York Financial Planners
The services offered by financial planners in New York 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 NY financial planners will work with you to put together a comprehensive plan that includes all the elements in the list above while others focus on just one financial area. Look out for 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 York
There are several things to consider before you hire a financial planner in New York. Because financial planners offer such a huge selection of services it’s important 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 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 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 conscious of how the financial planner will be compensated.
The Importance of Finding a Certified Financial Planner in New York
You’ll need to make sure that your financial planner is certified to make certain they are knowledgeable and meet ethical standards that have been set by official organizations.
There are several certifications for New York financial planners. However, the Certified Financial Planner (CFP) certification supplied 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 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 suggestions about investments then they should be registered with the SEC and/or the New York securities regulator.