11.3.3 Video: Choosing a financial planner

From: Financial Consumer Agency of Canada

Transcript

Introduction

Most of us can manage our day-to-day financial affairs, like banking and paying bills, on our own. But when it comes to bigger financial matters, we may not have the knowledge or skills to manage everything ourselves. If that's the case for you, you need to find a financial professional you trust and respect and with whom you can discuss important personal matters.

For financial matters, you should be able to find and build a rewarding relationship with a trusted financial professional who can help guide your financial planning. But to find this person, you'll need to do your homework.

You may need a financial planner to develop a financial plan to reach a specific goal, such as saving for education, starting a business or planning your estate.

 

Segment 2: Before you start

Before you start looking, it's important to realize that the financial professional who's right for the needs of a friend or relative might not be appropriate for your needs.

Also, be sure that the financial professionals that you consider are licensed as required by your province or territory to give the services and sell the products that you are seeking.

 

Segment 3: Finding prospective financial professionals

Now that you’re ready to start looking, here are some tips that can help you find the financial professional that is right for you:

(Voiceover)

1) Start by identifying the kind of financial professional you need. For many types of financial services, such as investing, professionals must be appropriately licensed.

2) You can ask your family, friends, colleagues and other professionals if they know financial professionals whom you should interview.

3) Check with organizations in your area to find accredited professionals.

 

Segment 4: The interview

Once you have the names of two to four financial professionals that others recommend, it's time for you to interview them.

(Voiceover)

When you meet them, ask them to explain or provide:

  • Their qualifications, experience and details of the company they represent
  • The types of services they offer
  • How they will go about helping you reach your goals
  • How you will be charged for the services
  • References to other clients in a situation like yours

You can get a list of specific questions to ask in the Investing and Financial Planning modules of the Financial Toolkit on the FCAC website.

You should feel comfortable talking with the financial professional that you choose. If you feel uncomfortable with one, choose someone else and beware of promises that are "too good to be true".

 

Segment 5: How to work with a financial professional

(Voiceover)

Once you have chosen your financial professional, expect that person to spend enough time with you to understand your needs thoroughly and to respond to your questions. The professional has the obligation to know your profile and needs.

The financial professional should report to you regularly, and should not take action on your behalf without first getting your permission.

When you talk to your financial professional, whether in person or on the phone, write down your questions and take notes of any information you receive.

 

Conclusion

For more information about financial planners, go to the Coalition for Professional Standards for Financial Planners website or go to the Financial Toolkit at the FCAC website.

 

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