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If you have decide to seek professional help in managing your personal financial planning, you should interview him too. These following questions may help you to evaluate several financial planners before you appoint who is right for you.

1. What experience does he have?

You should ask the planner how long he has been practice and several companies or individuals that has been associated with him. Ask him about his working experience and how he can relate that to his current practice.

2. Does he really certified financial planner?

There are many liars and conman outside there. Make sure he shows you his license and if you doubtful, you must check on his background with the relevant professional organisations.

3. What services does he offer?

Financial planner is a wide aspect of practice. There are several area of expertise such as cashflow management (including debt management), taxation, investment, insurance and estate planning.

Independent financially planner usually doesn’t sell any insurance or investment products and advice unless he is registered with the relevant authorities. Some of them offers consultancy without any products. They may also only specialize in taxation matters or estate planning only.

4. What is is his approach?

Different planners have different approach. Ask him in general what is the general requirement that he needs before you appoint him. There are financial planners who offers services only to high net worth individuals. Some of them may develop you a financial plan from a scratch.

5. Will be other people to working with you?

The financial planner may work with you himself or he have others in the office to assist him. He may appoints lawyers, insurance agent, tax consultant and others to carry out the plan for you. You should ask for list of names so you can check them in advance about their background and qualifications.

6. How he will be paid?

There is no free lunch. You should ask him from the very beginning how he will be paid for his services. Financial planners can be paid in several ways:

a. A salary paid by the company which he works. The company maybe get the money from you or the commissions generated from the products sold in order to pay his salary.

b. Fees based on hourly basis, flat rate, percentage from your assets or income.

c. Commissions paid by the 3rd party from any financial products sold. The commissions are usually generated from percentage of the amount you invest in the products.

d. A combination of the above.

7. How much does he typically charge

The amount that will be charged are varied but he should be able to give you an estimate of possible costs based on the works that will be performed.

8. Does anyone benefits from his recommendations?

Some business relationships, associateship and partnership may effect his own personal judgment while working for you this it could make him no to works for your best interest. Thus, you should ask him in writing to provide the conflicts of interest.

For example, he may ask you to buy an insurance, securites and unit trust / mutual fund from ABC company. The planner must be asked to disclosed his relationship with the company or with the other 3rd party such as lawyer or tax consultants.

9. Has he ever been taken action for his professional negligence and breach the professional code of conduct and ethic?

Mind to ask him what the regulating body that regulates him such as Financial Planning Association of Malaysia (FPAM) or Securities Commission and you may call these authority to verify him.

10. Can he put everything in writing?

You must ask the financial planner to put everything in writing i.e. the written agreement the details of the services that he will be provides. Peruse the document, make an objection if you disagree. Remember, all types of agreement in the world can be negotiated and altered. Keep the document properly for you future reference.

Original Source before editing: Certified Financial Planner Board of Standards

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