The financial world can be complex to navigate. New investment products, global investing opportunities, employee-driven 401(k)s — these things (and many more) — collectively underscore the value of seeking professional financial advice. If you are considering a transition from handling your finances on your own to working with a financial professional, here are a few key points to think about:

Consideration #1: Standards of professionalism.
The term “financial professional” is often used loosely to characterize anyone who receives compensation for providing financial guidance. But there is a stark difference between self-proclamation and industry-certification, with the latter carrying objective standards of competence. Financial professionals can earn industry certifications by completing accredited courses. There are several of these certifications available, but perhaps the most well-known is Certified Financial Planner™ (CFP®), which is awarded by the Certified Financial Planner Board of Standards, Inc. Many financial professionals work as accountants, lawyers, stockbrokers, and even insurance agents—all contributing complementary skills and training that contribute to a person’s financial stability. For example, an attorney who specializes in estate planning may also serve as a financial professional for retirement planning or estate and trust planning.

Consideration #2: Fees and expenses.
Another key consideration when transitioning to a financial professional are the cost and any fees. Financial professionals can be compensated in several different ways—some may bill for their time only while others earn a commission based on transactions—making it imperative to determine which option makes most sense financially based on an individual’s goals and situation.

Consideration #3: Value and benefits.
Managing your financial affairs can be complex and challenging but a financial professional can help you navigate your finances more easily. They can help you evaluate and assess your financial goals as well as tax liabilities, all while pursuing a strategy that aligns with your risk tolerance. Based on your financial goals and unique situation, the financial professional will provide a written financial plan outlining the steps necessary to pursue and adhere to your goals. This plan can also help you readjust tactics should your financial circumstances change.

Consideration #4: The selection process.
When working with a financial professional, it may be helpful to do a bit of research about their background and training to help determine whether they are a good fit for you. Important questions to consider include:

• Why did you become a financial professional?
• What is your training and background?
• Do you offer specific or general recommendations?
• How do you implement your recommendations?
• Which services and advice do you provide (accounting, estate planning, etc.)?
• Do you work with a team of other professionals to assist you? If so, which ones, and what are their specialties?
• How do you communicate with your clients  (method, frequency, etc.)?
• Do you perform annual reviews?

Consideration #5: Building a relationship.
When you first meet with your financial professional, it’s important to be candid about your financial needs and goals—which can be more challenging than it sounds. If you don’t have firm goals, they may even be able to ask you questions to help clarify them, if necessary. In preparation for the initial meeting, be sure to ask the financial professional which documents you should bring—such as your will, insurance policies, pension information, and investment account statements. Be prepared to discuss key subject areas like retirement, cash flow, savings, college fund(s), emergency funds, and estate planning.

Consideration #6: Fee-based financial professionals.
After you have developed clear investment goals and strategies, your professional will prepare a financial plan for you to review. This plan should include major objectives, like having a minimal amount of insurance, creating cash reserves for an emergency, and tactics for pursuing your short- and long-term goals. It may even include recommendations for changing your portfolio to align with your risk tolerance and overall financial goals as well as suggestions on where to invest future income and savings. Once the plan has been finalized with your financial professional, you will likely schedule annual reviews for tracking progression. These reviews will help ensure that the plan suits your current financial circumstances and to ensure you are making progress toward your goals.

By partnering with a financial professional, you are making a commitment to take better control of your finances and create a structured path toward a more independent financial future. Whatever your financial goals, our team of dedicated financial advisors in Member Investment Services are eager to speak with you. Contact them today.