Dear Penny: How Can I Find a Fiduciary Certified Financial Planner To Get Us Ready for Retirement?

Dear Seeking,

Looking for a Certified Financial Planner (CFP) is a great start, because these are a type of advisor with a fiduciary duty to their clients. That means they have to advise you in your best financial interest (and can’t, for example, advise you to make a risky investment only because they’ll get a whopping commission for it).

A CFP can help you manage money for your current expenses while planning for your retirement. They can advise you on specific investment moves, and if they’re a Registered Investment Advisor (RIA) with the Securities and Exchange Commission, they can also manage your investments for you.

The simplest place to find a credentialed CFP Professional is through the CFP Board’s website, letsmakeaplan.org. You can search by your city or address, and filter for those that provide retirement planning services.

Financial planners offer a variety of services and cater to varying income levels, so you can seek a CFP who aligns with your needs.

Set up a preliminary call with a CFP to ensure they’re a fit. The CFP Board recommends asking these questions:

• What are your credentials? A Certified Financial Planner or (less common) Chartered Financial Consultant both have a fiduciary duty and offer general financial advice.
• What services do you offer? Ensure they can help with your goals.
• Will you have a fiduciary duty? They should commit to this in writing.
• What is your approach to financial planning? Make sure their style is a fit for you, and know whether they directly handle your investments or enlist others to do so.
• What types of clients do you work with? They should align with your financial situation and unique needs.
• How will I pay for your services? You might pay a flat retainer fee, a fee based on a percentage of the investment assets the CFP will manage, an hourly rate or a fixed fee per service.
• Do you earn a commission for selling any products? A fiduciary planner can earn commissions, but they have to put your financial interests first.

Finally, make sure they haven’t been de-certified or disciplined in their field. You can confirm a CFP certification through the CFP Board’s verification tool. If they’re also an RIA, you can look them up through FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure.

Dana Miranda is a Certified Educator in Personal Finance® and author of YOU DON’T NEED A BUDGET. She writes Healthy Rich, a newsletter about how capitalism impacts the ways we think, teach and talk about money.