Picking a pro for your financial game plan

In some ways, choosing a personal financial planner is like picking a good golf or tennis instructor. You want someone who's knowledgeable, can make a thorough assessment of your strengths and weaknesses, and gives you a plan to help improve your game.

Of course, unless you're eyeing a spot on the pro tour, you'll have much more at stake tackling today's increasingly complex financial environment than playing at your local country club. That's why working with a financial expert to develop a comprehensive, personalized financial game plan may be the best investment you ever make.

Here are some thoughts to keep in mind in selecting the right financial planning professional:

Expect 'big picture'

While many financial professionals specialize in certain areas, such as investment advice, estate and retirement planning, risk management, and tax strategies, the primary responsibility of the accomplished financial planner is to provide you with a "big picture" perspective. Even if you only want consultation on one facet of your financial situation, a good planner should give you the framework to weigh each financial decision in relation to its short- and long-term effects on your life goals.

Set measurable goals

Specificity shape a successful, well-focused plan. Wherever possible, a planner should help you quantify your financial goals and set targets for when you'd like to achieve them.

Demand individual treatment

Before making any recommendations, your planner should meet with you several times, reviewing your personal situation, discussing your objectives, examining relevant documents, and establishing the terms of your working relationship. The end result should be your plan -- nobody else's. Watch out for the plans that are put together without a rigorous examination of your circumstances. That's a tip-off that you may be getting a boilerplate product rather than a customized strategy.

Get costs

A planner should be able to let you know the cost of his services within the first or second meeting. Depending upon the complexity of your situation, prices may range from $300 to $2,500 or higher.

Separate the plan from other purchases

Increasingly, consumers looking for unbiased, objective strategies are selecting fee-based planners. They are paid separately for the plans they develop, regardless of whether they play any other role in putting the plan into action.

Check credentials

Several educational designations, such as CFP (Certified Financial Planner), ChFC (Chartered Financial Consultant) and CFA (Certified Financial Analyst), can help identify professionals who are committed to high standards and ethics. In addition, planners who are registered as investment advisers must produce, upon request, a form disclosing compensation methods, conflicts of interest, business affiliations and personal qualifications.

Coordinate expertise

The rapid pace of today's financial, tax and legal developments makes it almost impossible for a planner to have an expert grasp on all the elements that might be needed to complete your comprehensive plan. That's why your planner should be willing and able to coordinate your plan with the efforts of any other specialists you retain.

Keep control, be involved

Contrary to a popular misconception, hiring a professional planner doesn't equate to yielding control of your finances. Actually, a good planner should solicit and welcome your input. And a well-conceived plan should empower you to make better informed and more focused decisions going forward.

Keep tabs on plan performance

Make sure that you monitor the performance of your plan. If you want, your planner will work with you after the plan has been implemented to track results and make appropriate adjustments.

Even if you're comfortable with developing your own financial strategy, you may want to think about reviewing it periodically with a planner. Just as the finest athletes regularly consult with coaches to keep in top form, objective professional input may add the extra "winning edge" to your personal finances in the long run.

Sharon Stanley is a representative of The Prudential Insurance Co. of America in Cape Girardeau. (334-2603)