What is a Financial Planner?
A financial planner is a professional that can help people manage various aspects 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 Rhode Island Financial Planners
The services offered by financial planners in Rhode Island 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 RI financial planners will work with you to construct a comprehensive plan that includes every one of the elements in the list above while others focus on just one financial area. Look out for 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 Rhode Island
There are several points to consider before you hire a financial planner in Rhode Island. 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 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 fee while others charge on an hourly basis. 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 Rhode Island
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 Rhode Island 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 advice on investments then they must be registered with the SEC and/or the Rhode Island securities regulator.