Making sense of retirement planning can be an arduous process. After all, it can become immensely confusing when trying to determine what steps to take in order to ensure your retirement is secure. Thankfully, choosing a financial planner to walk alongside you through this process and even advise you when you need suggestions, can make the entire process much, much easier. Of course, choosing the right financial planner to guide you in this process is key as choosing the wrong planner can be a hindrance to your success instead of helping you thrive in your senior years. Read on for some key factors to consider when picking the right financial planner:

Consider Their Background

You can easily check up on any potential financial planner by looking at their Form ADV. This is required as part of their state and federal registration process. Look for their client relationship summary and their advisory brochures, which are located on each advisor (or planner’s) forms. This is similar to a resume. In essence, you can look at their business experience, educational background, and even any disciplinary history that might be present.

Check Certification

To ensure that you are getting the most professional guidance from a financial planner, you want to make sure they have the right certifications and credentials. Some to look for include being certified in the following ways (although what certification is important to you might differ):

• Chartered Financial Consultant (ChFC)
• Chartered Retirement Planning Counselor (CRPC)
• Accredited Asset Management (AAMS)
• Certified Financial Planner (CFP)

Of course, they should also have state licensing.

Compare Fees

Another important aspect to consider when selecting the right financial planner is the cost. Make sure you understand the way that your potential planner makes money. After all, they aren’t advising you for free. Therefore, you want to make sure you understand how their fees breakdown, and then you can compare planner-to-planner to see which professional gives you the best deal. The most common ways financial planners are paid are broken down below:

• Commission-based: This means you pay a fee each time a transaction takes place.
• Fee-Based: This means you make an annual payment, which is equal to a percentage of the assets being managed.
• Fee-Only: You pay a set hourly fee for the planner’s services.

Interview Questions for Narrowing Down Your Options

Another way to help you determine the right financial planner to walk alongside you into retirement planning is to come up with some questions you want to ask. Then, when you meet with an advisor, you can ask these interview-like questions to help you further determine if they are a good fit for your needs and preferences:

• What Services Do You Offer? This question is designed to help you understand what potential areas they specialize in. For example, they might have experience in education savings, wealth savings strategies, or even estate planning.
• What Products Do You Offer? Investment-wise, you need to know what type of services you can get through a financial planner. This could include products like stocks, specific accounts, exchange-traded funds, mutual funds, CDs, bonds, annuities and insurance.
• What Resources Are Available For Clients to Use? Helpful tools that you could use while working with a financial planner could include resources like savings calculators and online account access.
• How Do You Work With Your Clients? The answer to this question will help you understand how involved a particular planner might be in your account. Are they hands-on? Do they communicate often? If so, how do they contact you, and what constitutes them contacting you?
• Are There Any Educational Resources Available? You might want to learn more about investments and the market overall as part of your experience with financial planning. Therefore, it’s wise to ask a planner you are considering if they offer any educational resources for you as their client.

In addition to the interview questions already listed, you can also inquire about some relational issues. This ensures that you align with your advisor on your overall investing approach. This could include questions about a planner's overall investment philosophy, their level of training, and how they can help you achieve your individual financial goals.

Set up a Meeting

Once you have narrowed down your list of potential advisors, now’s the time to meet with them in person to see how you get along with each other. Have all the questions listed above in mind, or add more of your own. Ideally, though, the purpose of the first meeting is just for you to see if you work well together. It can also be a time in which you share your short and long-term financial goals, and go over your personal risk tolerance among other issues and financial preferences. Make sure you bring along information about any investments you currently have, including proof of income, expenses, insurance coverage, debt, and assets. Keep all this and more in mind as you choose the best financial planner for your retirement and financial planning needs.