How to Choose A Financial Planner

Let's face it, not everyone is cut out to manage their money well.

"I don't actually have the time or the energy to do my own financial planning," said Adrienne Ables in Spartanburg. 

She admits she's better off with a financial planner. 

"You just need to find someone that you really trust and someone that understands what's important to you because everyone has different goals when it comes to financial planning," said Ables.

Wofford College Finance Professor Philip Swicegood echos that advice.  He says in addition to finding a planner who matches your financial philosophy, look for these 3 things when choosing who to hire:

     - Are they a Certified Financial Planner?

     - Do they offer detailed investment advice or just general?

     - And most importantly, how do they make money off you?

"I really prefer somebody who has no personal incentive to sell you a particular product because it may not be best for you individually," said Swicegood.

In other words, find someone who charges flat fees instead of commissions stocks and other investment sales.

He says a typical flat fee is about $1500, or 1% of the money being managed. 

Not cheap.  So Swicegood says a financial planner is not for everyone.

"If you're looking at needing help with a portfolio of less than 100,000 then it might not make sense at that point. 

As you look to grow your wealth, a word of caution.  Experts say beware of financial planners who over-promise.

"If they use words like guarantee, run.  Nobody can give a guarantee in this world, in the financial markets these days," said Swicegood.

Fortunately Ables feels her planner has steered her right for 10 years.

"I'm where I need to be so I can retire when I want to."

HOW TO FIND A FINANCIAL PLANNER:

The National Association of Personal Financial Advisors (NAPFA) are fee-only, which means their only revenue comes from their clients.

The Garrett Planning Network is a group of certified financial planners who all pledge to make themselves available for smaller projects for an hourly fee.

MANAGING YOUR OWN MONEY:

If you are going it alone, experts recommend these books:

Dave Ramsey: total Money Makeover, Financial Peace

Andrew Tobias: The only Investment Guide You Will Ever Need

Jeff Opdyke: Wall Street Journal Complete Personal Finance Guidebook