Perhaps one of the most challenging financial planning decisions you’re going to make is choosing a financial planner. Now of course, this doesn’t apply to the do-it yourselfer’s, (DIY) yet I’ve noticed lately that even the DIY crowd is keen on seeking a second opinion.

YOYO – Your On Your Own

Back in the “old days”, most people that worked full-time were covered by a defined benefit plan, also known as a pension. Between your pension, anticipated social security income and a lifetime of savings to draw on, planning for retirement was not that complex. Usually, again, speaking of the good old days, most people entering retirement had little or no debt and in most cases their mortgage was paid off prior to retirement. So retirement income planning quite honestly, didn’t take all that much planning.

Fast forward to 2010 and welcome to the “you’re on your own” – YOYO economy we now live in. In this economy, where a successful retirement requires strategic financial planning, choosing a financial planner is more crucial than ever.

Investments have become overly complex, the stock market is extremely volatile and we’re all living longer lives. Running out of money during retirement is what most of my new clients are concerned about when they develop a retirement plan. For those reasons and many more, people, especially baby boomers are seeking professional financial advice like never before.

5 Steps for Choosing a Financial Planner

Since 2003, when I started Spiritus Financial Planning, I grew the practice almost exclusively through client referrals. As it turns out, that has been a winning formula. Think about people you know and respect and have achieved success reaching their financial goals. They would be a great resource for a financial planner referral.

Take the time to do a little research on a financial planner’s web site. This is your first opportunity to learn a) how the financial planner runs his/her practice, b) about the services they offer and c) their overall philosophy. If they have a blog; all the better as you’ll gain valuable insight into their thinking and overall take on the economy.

Come up with a list of objective criteria you’re going to use to evaluate each financial planner. This step is worth the investment of time. It’s music to my ears when a potential client contacts me with a clear and concise sense of what they want to accomplish when working with a financial planner. The more financially intelligent the client, the higher the odds are of a very successful relationship.

For some reason, maybe because we’re dealing with money, I notice a lot of people who are seeking a financial advisor only tap into their left brain. Of course, our left brain is for crucial skills like analysis and reasoning, and that’s mighty important as you choose an advisor, but don’t forget about using your right brain as well as your intuition. This is especially true for women who seem to have much more access to their intuitive side. So think about the choice you’ll make but also feel it and trust your gut.

There are loads of options and choices in terms of choosing a financial planner. What often gets lost in the shuffle is a values match. Again, maybe because it’s money and that topic spooks a lot of people, but as a society in general, we tend to give a lot of our power away when it comes to money.

Seek out a financial planner that shares your core values - this should not be optional. For a successful and vibrant long term relationship to work for both the client and the advisor, become a matchmaker for yourself and watch how happy you’ll feel.