It can be difficult to come up with questions to ask when you are meeting with a financial planner for the first time. The questions below are a good place to start and will help you build an educated understanding of whether you should move forward.

1. How much money should you have to see a financial planner?

This varies by the client and there is no set rule. A good way to look at this is that if you have to ask yourself the question “Do I need an advisor?” then it is probably worth seeking out a free consultation. 

2. How much is a financial planner fee?

Fees vary from one advisor to another depending on their qualifications, experience, how much they pay their employer (advisors usually have split revenue similar to real estate agents), and the services they provide. The easiest way to find out is to interview and advisor and ask them for a written proposal quoting your fee as well as the services they will provide to you. 

3. Is it worth paying for a financial planner?

4. Is there a difference between a financial advisor and a financial planner? 

There are all sorts of terms used to describe what is commonly called a “financial advisor.” These can include things like financial advisor/adviser, investment adviser, financial planner, retirement planner, investment manager, financial representative, and so on. It is generally up to the advisor and their employer what they call themselves (assuming they have the right certifications and licenses). We recommend finding an advisor who has earned the right to call themselves a CERTIFIED FINANCIAL PLANNER™ professional and who is fee-only (does not sell commissioned products). 

5. Are all financial planner fiduciaries? 

Answering this question first requires defining the word “fiduciary.” Many investors consider fiduciary to mean the advisor is not incentivized to sell commission products. However, that is different from the legal definition. In many cases a commissioned advisor can be considered a fiduciary even though their advice may be biased or limited to the products they are able to sell. We believe the purest form of a fiduciary is someone who is 1) Credentialed by the CFP Board and 2) qualifies as “fee-only” as defined by the CFP Board meaning they do not receive commissions or compensation from third parties like insurance companies or mutual fund companies. 

6. Is certified financial planner the same as a fiduciary?

All Certified Financial Planner™ professionals are required to act as fiduciaries if they are providing financial planning. There are exemptions to this rule and they can still earn commissions or other hidden fees while acting as a fiduciary. It is important that your advisor is not only a CFP® professional but also fee-only (cannot receive hidden fees/commissions). 

7. Who are the best fiduciary financial planners or financial advisors near me?

There are several options for finding a financial planner near you who is also a fiduciary. These include feeonlynetwork.com and napfa.org which are search engines that allow you to search for local fee-only advisors. 

8. How do you know if a financial advisor is a fiduciary?

Simple – ask them to put in writing that they will always act in a fiduciary capacity and will never receive a commission or other hidden fee from the advice they give to you. 

9. Which is better, CFP or CFA?

The CFP® designation covers a wide variety of topics ranging from estate planning to investments to taxes. It is most common to see CFP® designees working as financial planners who directly engage with clients. It is rare to see a CFP® designee working in a corporate structure that does not involve working with clients. The CFA designation has a narrower focus and includes sections on economics, corporate finance, and investments. It is common to see CFA designees working in corporate finance and corporate economic positions. Some CFAs also work directly with clients in a financial planning capacity. 

10. What is the difference between fee-based and fee-only? 

This is one of the trickiest terminology differences in the financial planning world. Fee-based advisors have the capacity to act both as fiduciaries paid directly by their clients and also as commissioned salespeople paid by a third party for selling their products. Fee-only advisors are exclusively paid by their clients and do not receive commissions or other hidden fees. 

11. What does CFP® or Certified Financial Planner™ mean?

The CFP Board is a private organization that manages the certification process for the CERTIFIED FINANCIAL PLANNER™ designation. Certificants must meet an education requirement (bachelor’s degree), meet an industry experience requirement (generally three years of experience), pass an exam, and maintain ongoing continuing education and ethics requirements. Just like any other professional designation, there are different types of CFP® practitioners and each can choose their own career path and services they provide to clients.