Membership in an industry group may indicate the planner has met certain standards and requirements. Ask for an explanation of any title used by the planner, and about the requirements for use of the title and membership in, or certification by, the organization. Call the organization to verify what you are told. But, remember that neither membership in an organization, nor initials after a name, guarantee competence or integrity. Regardless of an individual's title, your best approach is to apply your own stringent standards to the selection of a financial planner.
Some planners specialize in one or more areas of financial planning, or in a certain type of client.
In such a case, determine whether an area of specialty matches your goals. Also, ask whether the planner refers clients to another source of assistance, if the need arises for services outside his or her areas of expertise. Fee Determinants Financial planners are categorized by the manner in which they charge their clients. Basically, they offer a financial plan and then refer clients to others who sell financial products such as stocks or mutual funds. Payment is required whether or not you choose to implement the suggested plan.