good financial planner

5 Principles for Choosing a Good Financial Planner

As the economic environment becomes more difficult, financial instruments become more complex, and uncertainty about the future increases, so does the demand for ‘financial design’. Many people are  interested  in financial planning, search the Internet, and ask them to  introduce a financial planner to their surroundings, but there is often no standard as to which  financial planner to meet and consult with.

Perhaps when it comes to finding a place to eat, planning a trip, or finding a child’s school, you have your own standards. But when I choose a financial planner who will give me advice for my financial future and maybe manage  me for the rest of  my life, I often don’t know what criteria to choose, and if I  choose a financial planner with the following five criteria, I’ll say, Good You will be able to choose a ‘Financial Planner’.

1.  Choose a financial planner who asks a lot of questions

People’s lives are very diverse.  Your job, your family members, your current financial situation,  and  your plans for the future are  all different. Therefore, the plans and actions  for the  future that are derived from  financial design consultations should  also be presented in a customized manner that reflects  the unique lives of  each person. In order for a customized financial plan to emerge, the financial planner needs to know  the customer well, and to get to  know the customer well,  he or she needs to ask questions and listen.   If a financial planner is only focused on   explaining his  career or  the merits of  a particular financial product,  it is  likely that he is not interested in the  client’s life and is not interested in selling  his product.

2.  Keep in mind that there are no freebies in the world

There is a saying that ‘there is no free thing in the world’. Since financial planning is also a business,  there can be no  free consultation, no free advice.  If the consultation is  free, there is  bound to be a different cost. So if you’re meeting with a financial planner,  be sure to ask how much it will cost.  The reality is that the  proportion of financial planners who conduct financial  consultations for a fee is still very  low in  our country,  and there is no guarantee that paid  financial counseling is better  than free financial counseling,   but it is very likely  that paid financial counseling will be  better in terms of  professionalism or objectivity.  It is high.  The process of checking whether financial counseling is free or paid, and seeing what it costs if it’s free, is essential.

3.  Choose a financial planner with clear principles

A good financial planner has his own clear principles and philosophies. It’s a good idea to  rethink the  idea of a financial planner who does everything the client wants. A financial planner who recommends  stocks if you want them to be  good,  and who  recommends  products that you want if you want  insurance,  or annuities if you want annuities,  is likely to be nothing more than  a salesman. A financial planner who can figure out what the client needs under a long-term plan, and sometimes offer  other alternatives based on  principles and philosophies, even if it is what the client wants, is a good financial planner.

4.  Avoid financial planners who boast a return on investment

“Past returns are not a guarantee of future returns” You may have seen this phrase in an investment product advertisement. This also applies to financial planners,  and it may be a  good idea  to  use them as a criterion for financial planners to avoid. Financial planners who boast that they have made a few percent of their clients profitable in the past should avoid such operational performance, even if it is true.  In fact,  past returns do not provide any guarantee for the future,  so as previously instructed,  you  should meet with  a financial planner who  can help you develop a  long-term investment plan based on clear principles and grounds. In addition,  nowadays, there are many  damages caused by illegal solicitation of investment due to similar receiving  activities, so it is important to note  this.

5.  Be a good customer

Finally, while it’s important to find a good financial planner, keep in mind that if you don’t become a good client even if you find them, you may not receive good financial advice and management.  A good client is a  client who is open-minded and communicates  with a financial planner about his or her financial  position and concerns, and  actively  participates in the process of providing materials or counseling  so that a good plan can  be formulated. If you have found  a good financial  planner according to the four  principles  outlined above, be sure to be  a good customer and enjoy the best financial design services.

Meeting a good financial planner is perhaps the next most important thing in your life after meeting a good spouse. You’ll be the  one who has  the biggest  influence  on  making decisions about the inseparable issues of  money in your life.  Please set the standards and principles to find a good  financial planner and develop a successful financial plan and life plan.