Define: Financial Planner

When choosing a financial planner, it is important to look for someone who is a Certified Financial Planner (CFP) and has relevant experience in the field. Additionally, check if they are registered with the appropriate regulatory bodies.

Financial planners typically charge either a fee-based structure, where they charge a percentage of the assets they manage, or a commission-based structure, where they earn commissions from the financial products they sell. Some may also offer a combination of both.

Financial planners who are registered as investment advisors are legally obligated to act as fiduciaries, meaning they must always act in the best interest of their clients. However, not all financial planners are held to this standard, so it is important to clarify their fiduciary duty before engaging their services.

A financial planner can help you develop an investment strategy based on your financial goals and risk tolerance. They can also provide ongoing monitoring and adjustments to your portfolio to ensure it remains aligned with your objectives.

Financial planners are not typically licensed to provide legal advice. However, they may be able to offer general guidance on legal matters related to financial planning, such as estate planning or tax implications.

If you suspect your financial planner is involved in fraudulent activities, you should immediately report your concerns to the appropriate regulatory authorities, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).

No, it is illegal for a financial planner to guarantee investment returns. Investments inherently carry risks, and a financial planner can only provide guidance based on their expertise and market analysis.

The frequency of meetings with your financial planner will depend on your individual needs and circumstances. However, it is generally recommended to have regular check-ins at least once or twice a year to review your financial plan and make any necessary adjustments.

If your financial planner goes out of business, your investments and assets should still be held separately in custodial accounts or with financial institutions. In such cases, you may need to transfer your accounts to a new financial planner or manage them independently.

Yes, you have the right to terminate your agreement with a financial planner at any time. However, it is important to review the terms of your agreement to understand any potential fees or penalties associated with early termination.