Professional financial planning is a service that helps individuals manage their current money needs and reach their long-term goals. Financial planners can help with a wide variety of topics, such as saving for retirement, education, taxes, insurance and estate planning. Some planners specialize in a particular topic, while others provide comprehensive advice. Financial planners can be paid in a variety of ways, including commissions and fees for services, such as hourly rates or flat fees. Financial planners who are commissioned may have an incentive to direct clients to investment products for which they receive payment. In contrast, financial planners who are fee-only have a fiduciary responsibility to act in their clients’ best interests.

Professional Financial Planning: How Experts Help You Succeed

Some financial planners have earned the CERTIFIED FINANCIAL PLANNER(r) (CFP(r)) credential from the CFP Board. This designation requires significant study and work experience and imposes a fiduciary duty on planners to make recommendations that are in their clients’ best interests. The CFP Board also provides a tool for consumers to check the status of any planner who claims to hold this credential.

Whether or not a planner holds this certification, it’s important to ask about their education and background. It’s also worth considering their cost versus your financial needs and goals. Planners can charge a range of fees, from a percentage of assets under management to an hourly or flat rate. Moreover, some planners have termination fees that require notice periods before you can end your relationship with them.