Finding the Financial Planner of Your Dreams

If you are like most humans, money can be an awkward conversation. It’s a very intimate topic. Depending on how you were raised, the whole idea of talking about finances can be intimidating at best; embarrassing at worst. What you are looking for in a financial planner is, well, a special type of relationship. One that could be very different from other professional encounters you’ve had. This is a person who could quite possibly know more about you than anyone else in your life. 

With that being said: You want to find a candidate you’re very (very) comfortable with. 

“Tears happen in my office; sometimes from grief, sometimes from joy,” says Jamie Cochran Certified Financial Planner (CFP®) of Memphis, Tennessee. He’s there for his clients’ big life changes: graduations, marriages, divorces, retirement, widowhood etc. And Cochran becomes a part of those lives, adding guidance and advice as needed in times of adversity and change. Which is a blessing when you have the right guide. Other financial advisers I spoke with describe their job as “understanding the nuances of your world and listening.” 

So, if this human, this financial planner, you’re looking for is going to know all of your business; your ups and downs, your highs and lows, your triumphs and losses—your personal coach through life’s most personal moments, maybe we should look at finding the right financial adviser like dating.

For example, I chatted with a Manhattan financial planner who’s into metaphysical philosophy and has built her business around that passion. Her clients, all with her for decades, are either of the same mind set or don’t mind some granola with their financial advice. She consults psychics for their takes on the markets. She uses horoscopes and astrological charts and invests accordingly. In her newsletter she shares about her yoga practice and whatever New Age topic is relevant. The point is: There are all kinds of flavors of financial planners for you to choose from. “We all tend to gravitate towards people who share our interests,” offers Cochran. 

But here’s the question: Do you need a financial planner? 

When I’ve asked that question to qualified, licensed CFPs the answer is always, “Yes!” If you have anywhere between $25 to $25 million to invest, the answer is yes, you can benefit from a financial planner to manage even the most modest of portfolios. “You don’t need a ton of money, that’s a myth,” a New York planner told me. Another offered that everyone already has a financial plan, some by design, others by default. She said guidance from a professional can help fashion a better plan for a healthier financial life.

If you have no money at the moment, CFPs will suggest they can add value just with a conversation even if you don’t become a client. For example, medical students often will have massive amounts of debts when starting their practices, they have no money but talking to a professional about finances can help them get on the right path. Financial planners are a great resource for sound advice that’s tailored to your specific situation. 

Usually people seek a financial planner before big life events: Getting married, having kids or retirement.

If you’ve not sought out a financial planner yet, you could be wondering, is it too late? 

I put this question to the CFPs I spoke to and they all agreed: it’s never too late. One told me he just got a new client who’s 99 years old. (May we all be lucky enough to procrastinate that long!) Remember: Financial advisors assist not only with investing, but also with insurance, taxes, charitable giving and estate planning. 

Ok, so far we’ve established that a financial planner is an intimate (hopefully) long term professional relationship, one you will benefit from having and it’s never too late to start.

But where do you even begin to find this person?! 

If the idea of searching for some stranger to guide you through your financial journey could seem daunting, here are some thoughts to ease the panic:

Unlike a potential husband or a wife, CFPs are regulated by a certification board which is considered the gold standard in the industry. Certification denotes they’ve passed a rigorous written exam. Then to maintain their good standing with the CFP® board, they must adhere to strict ethical standards. They’re required to act in your best interests and if they don’t, they could lose their license permanently. The CFP® board also requires annual re-training, so clients can be assured their planner is up to date with any new laws and tax codes. 

In that way, we can think of financial advisors like lawyers. Yes, there could be bad ones, but Bar Associations have the power to end those careers while ensuring all officers of the court follow the law. If you find a reputable CFP® who’s in good standing with the CFP® board, that can ease many concerns. These are checks and balances within an industry that is ultimately based on trust and mutual benefit. 

Finding a money advisor is like looking for a date. You are looking for a human connection. You may be wondering, is there something like OKCupid, a dating app, to find your perfect match with a CFP®? Actually, yes, there is. They’re not apps exactly but are referred to as matching services. One is SmartAsset, another is Wiser Adviser. On these websites, potential clients fill out a questionnaire, let’s think of it as your dating profile, then are given five potential matches to consider. 

/ check with Sharron

The sage advice there is to talk to more than one match. Seven is verging on excessive, according to my sources. But most CFPs I spoke with say around three is pretty much due diligence. And remember, like a date, this is a bothway interview. You are not wasting their time and there’s no obligation to go with a financial planner you have any hesitation about. Most of us didn’t marry the first person we dated, so keep that in mind when on your search. One financial planner said she doesn’t even talk about money during her first conversation with a potential client. “I have some requirements but it’s not a financial number,” she told me privately. One of her requirements is willingness to learn. 

Now if the thought of meeting strangers off the Internet isn’t your thing, there are other ways of finding a great match offline. Start with your affinity groups: Your place of worship, the schools you attended, the schools your children attended, your book club, your kickball team, your RenFair Guild etc. 

Whether we call it your natural market or the human Google, this is how we used to make connections before WiFi and it still works. And with financial planners, much like restaurants, reputation is everything. If a restaurant is making people sick, it’ll not be recommended. Same with CFPs. If someone is doing a great job, their clients will testify to that effect. That type of feedback is particularly trustworthy when we consider the relatively small world of financial planners. According to the Certified Financial Planner Board of Standards, as of 2023, there are just under 100,000 CFPs in the United States. Meanwhile, the Land of the Brave is home to 750,000 restaurants and 1.3 million lawyers.

However, you can use the regular Google to find your match. There you can find reviews of CFPs and get a sense of who they are from their websites or their firm’s websites. It’s also a good place to research details about financial products you could benefit from. Remember: These are not used car salesmen saying anything to close the deal. You should feel no pressure. It should be an enjoyable educational experience that considers the big picture, as opposed to immediate gratification. 

Word-of-mouth is still bread and butter to those who make a living helping people with their financial aspirations. All of the financial planners interviewed for this article agreed that the majority of their referrals are from current clients, not the Internet. They explained that this is a relationship based on trust, and a referral is a transfer of trust. 

So once you’ve found Mr. or Ms. Right-CFP®-For-You then what?

Again we can think of this like dating in that communication and boundaries are paramount. How often do you need to talk to this person? How often should you? When starting out with a new relationship, even when it’s purely professional, it’s always good to figure out expectations and make sure everyone is on the same page. One CFP® tells me the bare minimum they connect with their clients is twice annually. You could want to check in each quarter or even once a month. Again, this is your comfort and your security, and it’s all your call. “I want to know their specific goals and their specific needs for a holistic approach,” says another financial advisor in Manhattan. 

You could be wondering: What are the things to look out for?

I put this question to many CFP®s, the obvious one was not to trust your life savings to an unlicensed advisor whose main selling point is they managed to download a Bitcoin app. In fact, the CFP® licencing board offers the latest guidance on cryptocurrency as such: 

“The Code and Standards does not require a CFP® professional to provide, and does not prohibit a CFP® professional from providing, Financial Advice about cryptocurrency-related assets. When providing Financial Advice about cryptocurrency-related assets, however, a CFP® professional should do so with caution. A CFP® professional must be competent to provide that Financial Advice and must consider the particular attributes, risks, and uncertainties that cryptocurrency-related assets present when providing that Financial Advice.” 

Meaning if you encounter a financial planner who evangelizes cryptocurrency, be wary. As of this writing that’s not considered best practices. Regardless of whether you want to be a risk taker or more conservative, it should always be at your comfort level with full transparency. 

What are other red flags? “Be skeptical of anyone who says they always outperform the market. No, they don’t,” cautions one planner.

“I’d say a red flag would be recommendations they can’t explain or something the client may not be comfortable with. Pushy, is a warning,” says Cochran. 

You could be wondering how CFPs get paid.

“I get paid based on the market value of the investments,” explains Cochran. The range varies but it’s usually around 1-2 percent of the market value. They make more as it grows and less when it decreases. It’s a relatively small amount compared to other commissioned professions. Talent agents, for example, take 15 percent. When you’re doing your bothway interview it’s a good time to ask how they get paid and what percentage they’ll take. They should be very upfront about that. There are some formulas for different types of financial products but the range is still relatively low. 

To sum up: Don’t be intimidated, CFPs are there to help you plan and strategize for financial health. Financial planners are friendly and there’s no pressure in closing a deal. Ask around for recommendations. Do your research. Don’t panic. Talk to more than one financial planner.

But most importantly: It’s never too late to figure out your plan for a more secure future!