What to look for in a financial planner.

Many consumers are unaware of all their financial needs. Thus, they are often not well versed in the methods used to satisfy their short-term and long-term financial goals.

Though consumers want to accumulate greater wealth, they are also concerned about losing their life savings in a volatile investment market. Unfortunately, inexperienced investors may be swayed by financial planners who are not qualified to provide advice on a broad array of financial planning options. Many of these so-called "professional financial planners" are employees of investment companies, and their earnings are tied to commissions and product sales.

The high-pressure techniques that many of these sales people use often push consumers to buy products that are not suitable for them. As a result, consumers find themselves in a financial quandary, paying unnecessary sales commissions for products that will not provide them with financial security.

What should consumers be looking for in a financial planner? The two equally important and overriding characteristics that a financial planner should possess are competency and ethics.

Competency is the ability of the planner to correctly assess the various multi-disciplinary financial needs of a client. A competent planners should create a plan that includes appropriate methodology and financial instruments to meet all the requirements of the client. In addition, the financial planner should be the "quarterback" who puts together a team of qualified professionals such as an attorney, a CPA, an investment advisor and an insurance agent, for example. The financial planner must be competent enough to assess the work of the team members and to suggest any necessary adjustments to the financial plan.

Ethics involves placing the client's welfare before the planner's welfare. The financial planner must understand that his personal well-being rests on how well he performs on behalf of the client. When the financial planner recognizes this aspect of care, then all the necessary ingredients of sound financial planning fall into place.

To find a planner that satisfies both the compotency and ethics requirements, look to a Certified Financial Planner (CFP) practitioner. These planners are licensed by the CFP-Board of Standards which ensures that CFP licensees have the highest level of professional standards and codes of conduct. The Board requires the 4 E's--Education, Exam, Experience and Ethics--in an effort to prepare planners to best provide the services that consumers have the right to receive.

California Lutheran University offers a certified financial planning program through its graduate studies program. CLU offers both an MBA and a Certificate in Financial Planning. The coursework is deigned to prepare individuals to sit for the CFP Certification Exam. CLU's program is registered with the Certified Financial Planner Board of Standards.

This article was provided by California Lutheran University. To find out more about their program, visit www.clunet.edu/fp.