How do you search for the best Financial Planner?
People sometimes ask for a referral from someone they know. However, the financial planner who is a perfect match for your friend is not a perfect match for you. You should start with understanding what your unique financial needs and goals are. You will then be in a better position to find a financial planner with experience helping other people like you, and one who
can help you clarify your goals and needs to work towards a solution.

What is Financial Planning?
Financial planning is the process of creating a plan to help you reach your life goals and
financial goals. In this regard, financial planners often perform the role of psychologists, asking you questions to help you figure out what your life goals actually are. Many people might say their goal in life is to retire and move to the beach, but how many people actually do that when they retire? Not many. Most people want to continue to do something productive and they want to be near family and friends in a familiar setting. A financial planner can ask questions to help you explore your true goals.The process of financial planning will also look at when you want to achieve your financial goals and what your current financial situation is. In looking at your total financial picture, a financial | plan may incorporate retirement planning, college education
funding, estate planning, charitable giving, income needs, insurance needs and your tax
situation. It should also take into account your personal risk tolerance, which means an assessment of the amount of volatility you are willing to have in your portfolio in exchange for a potentially higher rate of return. Your risk tolerance usually influences how your portfolio is diversified among stocks, bonds, commodities and alternative investments. This is important to prevent people from panicking and selling at market bottoms, or putting everything into a popular investment at a market top.

What are the next steps in the process of financial planning?
As mentioned above, the first steps are for the financial planner to find out your goals, risk tolerance and current situation. He or she can then begin the analysis to prepare your actual financial plan. For instance, the analysis might show much money you need to save each month, earning 8%, to retire at age 60 with sufficient retirement income to last for 30 years after that.
Your financial plan might show various scenarios, such as a scenario based on what you are currently doing, and another that shows what you need to do differently to actually reach your financial goals. You would discuss the plan with your financial planner at this point to make sure
it correctly identifies your goals and situation, and that you understand the analysis and results
of your financial plan. This analysis and delivery of a plan form the basis of financial planning.
Some financial planners will charge you only for the time necessary to create your financial plan. You can then take the financial plan and implement it on your own or with another financial professional. Many financial planners will also help you implement the plan. In this step, they
will select the right solutions to fit your needs. For instance, your goal might be to save for retirement. The financial planner would select the blend of investments that matches your risk tolerance, tax situation and retirement needs. Or your goal might be to provide income for your family if you pass away. A financial planner can help select life insurance that fits your needs and budget.

You will hopefully have a long-term relationship with your financial planner. Not only will you want to review your plan and make sure your solutions are still on track to meeting your goals, but your financial planner will want to review your goals themselves to see if anything has changed. This happens constantly. With every birth, death, marriage, divorce, job change, college education, or other financial event in your family’s life, you will need to work with your financial planner to see if your goals have changed, your will needs to be updated, your plan needs to be updated, etc.