"What are your qualifications?"

Keith L. Hatton, CFP, CLU, ChFC, TEP

financial planner planners Canadian planning advisor

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We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning.

Financial, RRSP, Mutual Fund, Estate Planning, IPP, RRIF, Employee Benefits, Life Insurance, Universal Life, Tax Shelter, Living Buyout, Financial Planning, Retirement Planning, Shared Ownership, Pension, Trusts, Offshore, Shareholder Agreements, Accident and Sickness Insurance, Group Insurance, Canadians Can Now Purchase an Affordable US Health Care Plan

Question

"What are your qualifications?"

Answer

Many people offering financial services call themselves financial planners. However, financial planning is a detailed, complicated process. It requires hands-on experience and a strong technical understanding of topics such as personal tax planning, insurance, investments, retirement planning and estate planning, and how a recommendation in one area can affect the others.

Ask the planner what her qualifications are to offer financial advice and if, in fact, she is a qualified planner. Ask what training she has successfully completed. Ask what steps she is taking to stay current with changes and developments in the financial planning field. Ask whether she holds any professional designations including the Certified Financial Planner designation, which is recognized internationally as the hallmark of the competent, ethical financial planner.

Question

"What experience do you have?"

Answer

Experience is an important consideration in choosing any professional. Ask how long the planner has been in practice, the number and types of firms he has been associated with, and how his work experience relates to his current practice. Inquire about what experience the planner has in dealing with people in similar situations to yours and whether he has any specialized training. Choose a financial planner who has a minimum of two years experience counseling individuals on their financial needs.
Question

"What services do you offer?"

Answer

The services a financial planner offers will vary and depend on her credentials, registration, areas of expertise and the organization for which she works. Some planners offer financial planning advice on a range of topics but do not sell financial products. Others may provide advice only in specific areas such as estate planning or taxation. Those who sell financial products such as insurance, stocks and bonds and mutual funds, or who give investment advice, must be registered with provincial regulatory authorities and may have specialized designations in those areas of expertise.

Question

"What is your approach to financial planning?"

Answer

The types of services a financial planner will provide varies from organization to organization. Some planners prefer to develop detailed financial plans encompassing all of a client's financial goals. Others choose to work in specific areas such as taxation, estate planning, insurance and investments. Ask whether the individual deals only with clients with specific net worth and income levels and whether the planner will help you implement the plan she develops or refer you to others who will do so.

Question

"Will you be the only person working with me?"

Answer

It is quite common for a financial planner to work with others in his organization to develop and implement financial planning recommendations. You may want to meet everyone who will be working with you. Financial planners often work with other professionals including ones you already use such as your lawyer and accountant. if the planner works with professionals outside his own practice get a fist of their names and qualifications.

Question

"How are you compensated?"

Answer

Your planner should disclose in writing how she will be compensated for the services she will provide to you. Planners can be paid in several ways:

Commissions: The advisor is compensated if you purchase financial products to implement a financial planning recommendation. In some cases the commission is paid by the suppliers of financial products such as an insurance company. In other cases you pay the commission, for example, if you buy shares of a publicly traded company. Commissions are usually a percentage Of the amount you invest in a product.

Salary: The company for which the planner works pays the planner a salary. The planner's employer may get its revenues from fees paid by clients such as yourself or in commissions paid by clients making a purchase or by the suppliers of financial products.

Fee-for-Service: Advisors paid on a fee-for-service basis may charge on an hourly rate, set a flat rate for a specific service or be paid a fee based on a percentage of assets or income.,

In some cases compensation would be a mix of fee and commission. You should also ask if the planner or organization receives any benefit other than commission, such as advertising and promotion subsidies, from suppliers of financial products.

Question

"How much do you typically charge?"

Answer

While the amount you pay the planner will depend on your particular needs, the financial planner should be able to provide you with an estimate of possible costs based on the work to be performed. Such costs would include the planner's hourly rates or fiat fees or the percentage he would receive as commission on products you may purchase as part of the implementation of the financial planning recommendations.

Question

"Could anyone besides me benefit from your recommendations?"

Answer

Ask the planner to provide you with a description of any business interests and potential conflicts of interest in writing, for instance, any business relationship or ownership interest in any company that supplies financial products sold by the planner and the planner's employer.

Question

"Are you regulated by any organization?"

Answer

Financial planners who sell financial products such as securities and insurance or who provide investment advice are regulated by provincial regulatory authorities and may also subscribe to a code of ethics through a professional association. Others who are members of the accounting and legal professions are usually members of professional bodies which govern their fields. Planners who hold the CFP designation are subject to disciplinary proceedings of the Financial Planners Standards Council. It is a fair question to ask a planner whether he has ever been the subject of

disciplinary action by any regulatory body or industry association. You can verify the answer by contacting the relevant organization. Ask the financial planner whether he subscribes to a professional code of ethics such as the Certified Financial Planner Code of Ethics.

Question

"Can I have it in writing?"

Answer

Ask the planner to provide you with a written agreement that details the services that will be provided. Keep this document in your files for future reference.

Information Request Form click here

We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning. We have also been very successful in reducing costs of employee programs and providing more tax effective compensation.

health, dental, rrsp, rrif, tax shelter, mutual funds, shared ownership, split dollar, segregated funds, bonds, life insurance, employee benefits, planners, financial, planner, pension plans, offshore, trusts, living buyout, universal life, IPP, rrsp maximums, disability insurance, RCA, levered, financial planning, estate planning, buy sell agreements, group insurance, group RRSP, accident and sickness insurance, Canadians Can Now Purchase an Affordable US Health Care Plan

We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning.

Financial, RRSP, Mutual Fund, Estate Planning, IPP, RRIF, Employee Benefits, Life Insurance, Universal Life, Tax Shelter, Living Buyout, Financial Planning, Retirement Planning, Shared Ownership, Pension, Trusts, Offshore, Shareholder Agreements, Accident and Sickness Insurance, Group Insurance, Canadians Can Now Purchase an Affordable US Health Care Plan

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Last modified: December 14, 2008