A professional financial planner can become a vital partner in assisting you with many, if not most, of the complex issues related to planning, executing, assessing, and revising your personal financial plan. But defining who is a "financial planner" is a little more difficult than defining "financial planning."

Because financial planning is a process, any number of financial professionals can take on the role of a financial planner. We support the concept, when applicable, of using a team in estate and financial planning. So, let's start with some terms we all know, like:

• Accountant: the financial professional who has a deep understanding of tax issues and making sure the tax man doesn't get a penny more than he's due. Some accountants hold the Certified Public Accountant (CPA) designation, and/or other accounting designations. An accountant may also handle aspects of business planning and management, as for instance bookkeeping, auditing, designing and implementing accounting systems, and may also do various forms of business consulting. Some accountants certify the general accuracy of accounting records for the benefit of third parties. There are many kinds of accountants with different skills and expertise.
• Stockbroker: the financial services professional who has passed exams mandated so that he or she can represent a broker-dealer firm to buy or sell securities on your behalf. There are many different kinds of brokerage firms, both discount and full (cost) service. A financial planner does not need to be a stockbroker to help you with your investments.
• Insurance agent: a state-licensed financial services professional who can advise you on your insurance needs and sell or broker you various kinds of insurance products.

Can an accountant complete your income tax return without asking you what state or country you'd like to live in when you retire? Sure.

Can a stockbroker sell you the latest investment without knowing that you want to start a family next year? Yes.

And can an insurance agent sell you an insurance product without knowing you're putting a nephew or niece through college? Yes!

Will a financial planner give you advice on how to reach your goals without asking you enough about your life to end up discussing your college funding, your plans to start a family or your dreams of retiring to Tahiti? No!

And that's what being a financial planner is all about. A financial planner is a trained professional who starts with you, the client, and works outward to products and services that meet your needs. Regardless of whether the financial planner is finding you a single investment or developing a broad-based, multi-year $10,000 financial plan, keeping sight of the big picture is at the heart of the recommendations the planner makes.

Questions to Ask when You're Considering a Financial Planner

What is your background and experience? Find out who you're talking to and if they have the experience necessary to advise you on your situation.

What are your professional qualifications? The term "alphabet soup" gets used a lot in financial services and that's because there are a lot of qualifications out there, some of which mean a lot and some of which don't. Ask the planner about his or her qualifications and the organization providing them so that you can do your own research.

What services do you offer, and may I choose only some of those services? Qualifications, personal preferences, and a host of other things may determine the services the planner offers. Find out what you will be able to access and what's not on the menu.

What is your approach to financial planning? Ask the planner how you would fit with his or her current group of clients and whether the planner has a preference for a particular style of planning.

Do you work alone or with others as a "team"? If you will work with a team, ask the planner how often you will get to work directly with him or her once you sign on.

How do you get paid for your services? Planners get paid by a variety of methods—salary; fees charged hourly, as a flat rate or a percentage of assets under management or other formula; commissions paid by a third party from the products or services sold; or some combination of all of these. Make sure you understand how the planner is getting paid.

How much do you typically charge? Until a planner gets deeper into your situation, he or she may not be able to tell you what the exact charges will be, but he or she should be able to provide you with estimates and cost ranges. Ask about any possible fees that might not be apparent. Remember, charges will vary state by state and by the nature of the work as they do for all professional services.

Could anyone besides me benefit from your recommendations? Ask the planner if he or she could gain personally from making a particular recommendation.

Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career? Do your homework and check all available disciplinary records.

Can I have it in writing? If a planner won't put your agreement in writing, ask why not.

It's a Process

Once you enter into a relationship with a professional financial planner, you can't just sit back and pat yourself on the back for a job well done. Remember, financial planning is an ongoing process, and you need to be an active participant in this process.

Your financial planner should have integrity. Trust is the linchpin of a successful professional relationship. You rely on your planner's honesty and professionalism in working toward achieving your goals. A planner should take his or her obligations to you seriously and place principles over personal gain.

You should receive objective advice. You are entitled to receive the best impartial advice your planner can offer based on his or her knowledge, experience and judgment. You shouldn't ever have cause to question whether your planner is acting in his best interest or yours.

Your financial planner should be competent. You have the right to expect that your planner has the level of knowledge necessary to carry out his or her responsibilities as an adviser. Ongoing continuing education should be a regular part of your planner's skills enhancement.

You should be treated fairly. You have the right to understand the risks associated with recommendations your planner makes. Your planner should tell you of any potential conflicts of interest that may exist if you purchase a particular product or service or follow a certain course of action.

Your privacy is important. You should be able to rely on your planner keeping your personal financial information in confidence, only sharing it with others to conduct business on your behalf. If your planner is also a lawyer providing you with legal services you have additional rights to confidentiality so that you can speak freely about your situation and receive frank legal advice.

Your financial planner should be a professional. Your planner should fully understand and respect his or her legal boundaries and not operate outside of his or her expertise.

Your financial planner should be diligent. A planner should discuss and understand your goals and objectives, and the scope of services you are asking him or her to provide. Then the planner should carry out those obligations in an efficient and timely manner and be ready, willing and able to address any questions you may have along the way.

In closing, here are some common sense, final thoughts and tips about working with a financial planner who will put your interests first:

• Trust your inner voice and don't be afraid to speak up. Ask for explanations if you're unsure about something. Address concerns if you aren't comfortable with something your planner does or recommends.
• If you feel you've been given a flip answer or a less than feasible explanation, schedule a visit to speak to your planner in person to discuss the issue and your concern.
• If you feel the need for a deeper level of service or attention, ask for it! Most planners will happily add the services you need. But sometimes they need to know exactly what you expect from them.
• Remember that you are in charge. A financial planner can only advise, counsel and recommend—you make the decisions!
• And finally, remember that the best financial planning partnerships begin and end with cooperation, honesty and open communication.

Estate Planning, Wealth Accumulation, and Protection Telephone: (804) 935-8510 ● Secondary Telephone: (804) 364-5071 Fax: (804) 364-6387 ● E-Mail Us
Street Address: 4860 Cox Road, Suite 200 Glen Allen, VA 23060 Map and Driving Directions	Mailing Address: P.O. Box 4066 Glen Allen, VA 23058-4066
Virginia estate planning attorney Robin S. Gnatowsky, CFP,® is a CERTIFIED FINANCIAL PLANNER™ practitioner, a certified public accountant (CPA), and an attorney focusing on financial planning, tax planning and estate planning. Richmond ● Glen Allen ● Midlothian ● Virginia Beach ● Virginia ● Florida ● Maryland ● Washington, DC