Financial planning: what to know

What the job involves, what changes the price, and what to ask a pro.

What financial planning is

A planner reviews your income, savings, debts and goals, and discusses strategies for budgeting, saving, insurance and investing. People look for one at a life change such as a job change, marriage, a new child, a home purchase or when they want a clearer picture of their finances. This is general information, not financial or investment advice.

Signs you need it

  • You have goals such as a home, school costs or retirement but no written plan
  • You received a bonus, inheritance or settlement and are unsure what to do with it
  • You have debt, savings and investments and want to see them together
  • You are changing jobs or reviewing workplace benefits
  • You are newly married, divorced or widowed
  • You want an independent view of the products you already hold

What the pro does

  • Gather information about your income, expenses, assets, debts, insurance and goals
  • Discuss your comfort with risk and your time frames
  • Analyze your current position and highlight gaps
  • Discuss possible strategies for saving, debt, insurance and investing
  • Put the discussion in writing and explain the reasoning behind it
  • Schedule reviews to update the plan when life changes

What changes the price

Every job is different, so we do not publish prices. These are the things that move the quote up or down.

  • The scope of the plan, from one topic to a full review
  • Complexity of assets, such as a business or stock compensation
  • Whether ongoing management or reviews are included
  • Whether the planner also manages investments
  • Whether you have a spouse or family to include
  • How organized your records are
  • How the planner is paid: by you, by commissions or both

What a written quote should spell out

  • The planner's compensation method in writing
  • What the plan covers and the deliverables
  • Whether ongoing reviews are included
  • Whether investments will be managed, and how that is paid
  • Conflicts of interest the planner discloses

Questions to ask before you hire

  • How are you paid, and could you earn more from certain products?
  • Are you required to act in my best interest when advising me?
  • What credentials do you hold, and how can I verify them?
  • Will you manage my investments, or only provide a plan?
  • Who will hold my money, and who has access to it?
  • How often will we review the plan?
  • Can I see a sample plan with personal details removed?

Red flags

  • A planner who promises returns or guarantees performance
  • Pressure to buy a product right away
  • A planner who will not explain how they are paid
  • Advice to move all assets without reviewing your situation
  • A planner who cannot show registration or credentials when asked

What you can do yourself

You can list your income, expenses, debts and savings, build a budget, and set goals with dates. Many free tools help you track spending. A licensed financial professional can review your plan, and tax questions belong with a CPA or enrolled agent. Anyone who sells investments or gives investment advice must meet registration rules.

Licenses and permits

Financial planning is a licensed or registered activity when it involves investments, insurance or advice for pay, and requirements depend on what the person does. Ask which licenses and registrations the planner holds and check them with the state securities or insurance regulator or the licensing agency.

Financial planning questions

Can a planner guarantee returns?

No. Investments carry risk. Be cautious of anyone who promises a result.

How do I know if a planner is registered?

Ask for registration details and check them with the regulator.

Do I need a planner if I have a small portfolio?

It depends on your goals. A licensed financial professional can discuss options.

Pro reviewers

Pros who offer financial planning remotely can improve this guide, like Wikipedia. We check every edit before it goes live. Every approved edit is credited in the edit history and on the pro's profile.

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  3. 3. They reach out

    They contact you the way you chose: phone, email or in-app messages.

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