Montreal Finance
Choose Financial Planner
Financial Planner Definition
Who and how you choose financial planner is determined by the fact that the kinds of services financial planners offer can vary widely.
Typically, a financial planner prepares financial plans for his or her clients.
Some financial planners assess the seven aspects of the financial planning areas, that is, legal aspects, estate planning, insurance, finances, taxation, investment and retirement. They also help you develop a detailed strategy or financial plan for meeting all your financial goals.
Other professionals call themselves financial planners, but they may only be able to recommend that you invest in a narrow range of products.
The average profile of the 31,000 members of the Chambre de la sécurité financière (F&E;), is a professional who is 49 years old, has 17 years of professional experience and who will retire in 2023 at the age of 65.
Locate Financial Planner
You can check the list of members (F&E;) provided by the Institut québécois de planification financière to help you find a professional in your area.
You can also view the Register of firms and individuals authorized to practice (F&E;) supplied by the Autorité des marchés financiers.
Selecting Financial Planner
Questions for a Financial Planner
What experience do you have?
Find out how long the planner has been in practice and the number and types of companies with which s/he has been associated.
Ask the financial planner (IQPF - F&E;) to briefly describe his or her work experience and how it relates to his or her current practice.
Choose financial planner who has experience counselling individuals on their financial needs in all or any of the seven aspects of the financial planning areas.
What are your qualifications?
The term "financial planner" is used by many financial professionals. Ask the planner what qualifies him or her to offer financial planning advice.
Choose financial planner who has proven experience in financial planning topics such as legal aspects, estate planning, insurance, finances, taxation, investment and retirement.
Determine what steps the planner takes to stay current with changes and developments in the financial planning field.
What services do you offer?
The services a financial planner offers depend on a number of factors including credentials, licenses and areas of expertise.
Generally, financial planners cannot sell insurance or securities products such as mutual funds or stocks without the proper licenses.
They cannot give investment advice unless registered (IQPF - F&E;).
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 tax matters.
What is your approach to financial planning?
Ask the financial planner about the type of clients and financial situations s/he typically likes to work with.
Some planners prefer to develop one plan by bringing together all of your financial goals. Others provide advice on specific areas, as needed.
Choose financial planner whose viewpoint on investing is not too cautious or overly aggressive for you.
Some planners require you to have a certain net worth before offering services.
Find out if the planner will carry out the financial recommendations developed for you or refer you to others who will do so.
Will you be the only person working with me?
The financial planner may work with you himself or herself or have others to assist him or her.
You may want to meet everyone who will be working with you.
To develop or carry out financial planning recommendations, your financial planner may work with other professionals outside his or her own practice. If so, get a list of the names of the attorneys, insurance agents or tax specialists and check on their backgrounds.
How will I pay for your services?
As part of your financial planning agreement, choose financial planner that will clearly tell you in writing how s/he will be paid for the services to be provided.
Planners can be paid in several ways:
A salary paid by the company for which the planner works. The planner's employer receives payment from you either in fees or commissions, in order to pay the planner's salary.
Fees based on an hourly rate, a flat rate, or on a percentage of your assets and/or income.
Commissions paid by a third party from the products sold to you to carry out the financial planning recommendations. Commissions are usually a percentage of the amount you invest in a product.
A combination of fees and commissions whereby fees are charged for the amount of work done to develop financial planning recommendations and commissions are received from any products sold.
In addition, some planners may offset some portion of the fees you pay if they receive commissions for carrying out their recommendations.
How much do you typically charge?
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 should include the planner's hourly rates or flat fees or the percentage he would receive as commission on products you may purchase as part of the financial planning recommendations.
Could there be any conflicts of interest between me and your business relationships or partnerships?
Some business relationships or partnerships that a planner has could affect his professional judgment while working with you, inhibiting the planner from acting in your best interest.
Ask the planner to provide you with a description of his conflicts of interest in writing.
For example, financial planners who sell insurance policies, securities or mutual funds have a business relationship with the companies that provide these financial products.
The planner may also have relationships or partnerships that should be disclosed to you, such as business s/he receives for referring you to an insurance agent, accountant or attorney for implementation of planning suggestions.
Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?
Make sure your financial planner meets the Institut québécois de planification financière (IQPF) legal requirements! (F&E;).
If the person you seek is not registered in the member directory (F&E;), make sure s/he is a graduate (F) of the IQPF.
The Autorité des marchés financiers (AMF) holds a register of individuals and firms with the right to practice in the various industries it governs.
Before you choose financial planner, use the AMF register (F&E;) to confirm the nature of a firm or the right to practice of an individual you are doing business with.
Can I have it in writing?
Choose financial planner that will provide you with a written agreement that details the services that will be provided. Keep this document in your files for future reference.
Questions for a Financial Planner
Financial Planner Checklist (MBK) / Locate Financial Planner (MBK)
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