3 Tips for Hiring Financial Planning Services

Financial advisors have become more prevalent in recent years, and people of all income brackets have started relying on their services. This trend is evident because 26% of Americans view them as their most trusted source for financial advice. 

If you are considering hiring financial planning services for the first time, you’re on the right track to managing your assets and building wealth. Still, there are some things you should know before trusting just any financial planner. 

This article will share three great tips to get the most out of your financial management services, so keep reading!

1. Get to Know Your Financial Needs

Before setting out to hire asset managers or financial planning services, you should have a clear objective in mind. What are your needs and goals?

For instance, you may want to secure your future by maximizing your retirement funds. Or, you may want to make higher returns on your investments. Here is a list of common reasons people hire financial planners:

  • Budgeting
  • Tax planning
  • Investing
  • Debt management
  • Insurance
  • Business planning
  • Retirement planning
  • Estate planning

In each area, you’ll find specialized financial planners. Meanwhile, some advisors work with people of certain occupations, demographics, or life stages. Find one that fits your needs and puts your interests first. 

2. Search for Local Advisors and Review Their Credentials

Finding a financial planner near you may be as simple as asking around. Family, friends, and colleagues are excellent places to start since they can recommend advisors with whom they have personally worked. 

Some great online resources let you search for financial advisors according to your location. Use these tools to make a shortlist and cross-check advisors and their credentials. 

Just about anyone can call themselves a financial planner, so make sure they are certified or licensed. 

The financial advisor you choose should be knowledgeable, professional, and skilled, such as those at https://consilium-ifa.co.uk/financial-planning/. Some of the credentials to look for include the following. 

CFP (Certified Financial Planner)

To receive this certification, individuals must have a bachelor’s degree and three years of experience in full-time financial planning. In addition, they must complete a board-certified program. Continuing education is also a requirement, of which professionals must complete thirty hours to keep their credentials.

CFA (Chartered Financial Analyst)

CFA officials primarily work in areas of investing. They have passed a three-part examination that covers wealth planning, investment tools, risk analysis, and portfolio management. They also hold a bachelor’s degree or are within 11 months of obtaining one. 

CIMA (Certified Investment Management Analysts) 

These professionals also focus on investments and complete a course only a few universities offer. Before enrolling, individuals need three years of experience in finance. To keep their CIMA certification status, individuals must complete forty hours of continuing education every two years. 

CRC (Certified Retirement Counselor)

If you want help planning your retirement funds, look for an advisor with this certification. They have at least two years of experience offering retirement planning services and have passed an exam. CRCs also take at least 15 hours of continuing education annually to stay on top of the latest developments. 

In addition to the ones we mentioned, you’ll see financial planners with other credentials. These will be listed after their name on their professional profiles. Be sure to examine their training type and understand what areas they are certified in. 

3. Understand Fee Structures

Once you find a qualified financial planner you would like to hire, it’s crucial to understand how they will charge you. Sometimes, advisors charge based on the total investments or assets they manage. Other times, clients must pay a flat fee or get a commission on earnings. 

There are various fee structures, so we’ll look at some of the most common ones. 


These advisors only charge for their services. It may be a flat rate, by the hour, or a retainer. Moreover, they don’t get commissions from the products or policies they recommend to clients. 

Assets Under Management (AUM)

This model is a type of fee-only pay structure. Clients have their advisors manage a portion of assets, and they charge a percentage of their total value. Usually, they charge between 1-3% of the assets’ value.


Financial planners with this pay structure get a commission when they sell certain products to their clients. Sometimes, this can lead to a conflict of interest. They may recommend products that are not in your best interests so they can make more money.


This model combines fee-only and commission structures. The financial planner charges the client a flat fee. Plus, they get a commission on the products they sell to clients. 

Of all the pay structures, most people prefer to work with a fee-only or assets under management advisor. Doing so ensures they have your best interests at heart since they are not getting a commission when they recommend products. 

Moreover, the AUM pay structure encourages advisors to grow their wealth since they will receive a higher payout. This incentive may motivate them to make wiser decisions regarding your portfolio.

Build Wealth with Financial Planning Services

After reading the tips in this post, you know about hiring financial planning services that you can trust. Get to work by reviewing your needs and researching local advisors. 

Remember to take your time and ask questions to find the right fit. If you do, you’re bound to find experienced and trustworthy financial planners who will help you reach your goals! 

If you want to learn more about asset management, check out more of our content relating to finances!  

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