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Los Angeles Five Star award winner

HOW TO WORK WITH A FINANCIAL PLANNER

                                     WANT A FINANCIAL PLAN?  

                           THEN WORK WITH A FINANCIAL PLANNER

 

As a Financial Planner, I am often asked: How much money do I need to work with you OR do you require a minimum amount of assets? It’s easy to understand why that question is asked so often. Traditionally, the financial services industry has placed a greater emphasis on what money/assets you have now vs. what you are trying to build and/or will have in the future. Often times, there is less focus on strategic and goals-based planning. Well, this is changing. True financial planning is about helping individuals make better financial decisions to achieve their personal financial goals. This includes creating a better understanding of employee benefits, investment strategies, estate planning, risk management, tax planning, and of course, personal and financial planning.

A CERTIFIED FINANCIAL PLANNER® professional helps people to identify and prioritize their goals; create roadmaps and blueprints to guide them and check in with them to monitor their progress. In short, financial planners act as your personal Chief Financial Officer. Job One is placing client’s interests first.

So, let me break it down in a language that might help to explain the differences in the professions and their expertise:

 

Financial Advisor: broad based, usually assigned by a company/corporate partner. Helps individuals identify assets and assigns specific assets to goals.

 

Investment Advisor: Expertise in Investments: Risk Profiling, Investment policy Statements, Asset Allocation Recommendations, Risk Profiling and Rebalancing Strategies.

 

CERTIFIED FINANCIAL PLANNER® (CFP®) mark: Includes all of the above –  Financial and Investment Advisor roles PLUS Strategic and Goals based planning –  including tax and estate planning, investments, risk management/protection strategies, retirement and lifestyle management.

When it's all said and done, you'll need to determine what platform best fits your needs. All of the above mentioned are professionals, who have met certain levels of training and must complete specific continuing educational requirements. What’s most important is what you need and how the financial professional will work with you.

 

In addition, be sure to do a background check on your financial professional. Here are two sites that you should visit to learn more about the financial professional you are either currently working with or are planning to work with. You simply need to put in the advisor's name and location. Here you will be able to view their history, current employment status, licensing and registration information and most importantly, view if there are any disclosures such as consumer complaints and/or regulatory violations:  

 

                  FINRA SITE

https://brokercheck.finra.org

 

     SECURITIES AND EXCHANGE COMMISSION SITE

                        

https://www.adviserinfo.sec.gov/IAPD/default.aspx. 

 

At the end of the day, working with a financial professional can assist in meeting your financial goals. Just do your homework first and make sure you've picked the right professional to work with.

 

Click to access BrokerCheck

Advisory Services offered by Urban Wealth Management Group LLC, a Registered Investment Provider. This material is for informational purposes only. The views expressed herein represent the opinion of Urban Wealth Management and are not intended as investment advice or an endorsement of any specific investment.

*Winners appearing on this page do not pay a fee to be considered or to win the Five Star Award. Professionals with a digital profile have paid a promotional fee.
The Five Star Wealth Manager award, administered by Crescendo Business Services, LLC (dba Five Star Professional), is based on 10 objective criteria. Eligibility criteria – required: 1. Credentialed as a registered investment adviser or a registered investment adviser representative; 2. Actively licensed as a registered investment adviser or as a principal of a registered investment adviser firm for a minimum of 5 years; 3. Favorable regulatory and complaint history review (As defined by Five Star Professional, the wealth manager has not; A. Been subject to a regulatory action that resulted in a license being suspended or revoked, or payment of a fine; B. Had more than a total of three settled or pending complaints filed against them and/or a total of five settled, pending, dismissed or denied complaints with any regulatory authority or Five Star Professional’s consumer complaint process. Unfavorable feedback may have been discovered through a check of complaints registered with a regulatory authority or complaints registered through Five Star Professional’s consumer complaint process; feedback may not be representative of any one clients’ experience; C. Individually contributed to a financial settlement of a customer complaint; D. Filed for personal bankruptcy within the past 11 years; E. Been terminated from a financial services firm within the past 11 years; F. Been convicted of a felony); 4. Fulfilled their firm review based on internal standards; 5. Accepting new clients. Evaluation criteria – considered: 6. One-year client retention rate; 7. Five-year client retention rate; 8. Non-institutional discretionary and/or non-discretionary client assets administered; 9. Number of client households served; 10. Education and professional designations. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Award does not evaluate quality of services provided to clients. Once awarded, wealth managers may purchase additional profile ad space or promotional products. The Five Star award is not indicative of the wealth manager’s future performance. Wealth managers may or may not use discretion in their practice and therefore may not manage their clients’ assets. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. For more information on the Five Star award and the research/selection methodology, go to fivestarprofessional.com. 3,527 Los Angeles area wealth managers were considered for the award; 158 (4% of candidates) were named 2020 Five Star Wealth Managers. 2019: 3,528 considered, 154 winners; 2018: 2,708 considered, 154 winners; 2017: 2,351 considered, 287 winners; 2016: 2,374 considered, 298 winners; 2015: 3,105 considered, 327 winners; 2014: 6,088 considered, 340 winners; 2013: 3,488 considered, 372 winners; 2012: 1,019 considered, 176 winners.