When you are getting ready to plan your financial future, you want to make sure your financial planning is done right the first time. Protecting your investments from fraudulent individuals is easy to do if you look into a few key areas. With some additional information, you will be able to determine if the financial planner you plan to hire is the best option for your needs.
Each state requires some type of license for a financial planner to operate a business. In some states, the financial planner only needs to take an exam for the license that proves that the person has a working knowledge of financial matters. In other states, the individual needs a degree in business and/or accounting before they can even take the exam to obtain their license.
Additionally, you should know if your state requires an insurance license as well for any products or policies the financial planner is offering. For example, some states require the individual to have a license when their clients can buy life insurance policies through the company. By knowing your state's requirements, it will be easier to choose a qualified person to help you with your investment needs.
Once you start looking for a licensed financial planner in your area, you need to know what type of payment options each one offers. You want to choose a planner that offers their services for a fair amount. Since some may even use different payment methods based on the services they offer, you need to be aware of how these options can influence the amount of money you pay.
The most common payment options you will find are a fixed fee and commission. The fixed fees are generally for advice on which investments you should choose or the fee can be for setting up retirement accounts. Commission based payments are normally for when the planner sells stocks on your behalf and generates extra money through the sale.
Another option is a percentage-based payment. When it comes to this option, you need to be careful, since the amount you pay is based on the value of the assets the planner manages for you. If you plan to invest a large sum of money, you want to avoid planners that only use a percentage-based system, since this will increase the amount of money you pay them.
When you are looking for a financial planner, it is best to gather some additional information first. With this information, you can choose a planner that is qualified and one that will offer you a fair payment scale.
When I got my first credit card, I had no idea how to manage my money. I made a lot of mistakes that I later regretted and had to spend many years rebuilding my credit. I didn't realize that even one mistake can cause serious damage to your credit score. I did a lot of research into money management and credit repair options and put the effort in to rebuild my credit. This site is a compilation of the things that I've learned and the steps that worked for me. Hopefully the information here can help you to avoid some of the struggles that I faced.