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.
Some planners charge no fee, but do earn a commission on the investment products they sell.
Some planners charge a fee for the financial plan and a commission for the sale of products. It is up to you to determine whether a planner is offering sound financial advice or is simply trying to earn a commission by selling a particular product. When you interview prospective planners, ask how they expect to be compensated. If the planner earns a commission, ask whether he or she offers a complete range of investments or sells only a specific type of product. Similarly, ask whether the planner offers investments from one specific company or from many providers.