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10Questions to AskWHEN C HOOSINGAFINANCIAL PLANNERC ERTIFIED F INANCIAL PLANNERB OARD OF S TANDARDS, I NC.

You may be considering help from afinancial planner for a number of reasons,whether it’s deciding to buy a new home,planning for retirement or your children’seducation, or simply not having the time orexpertise to get your finances in order.Whatever your needs, working with afinancial planner can be a helpful step inQ&Asecuring your financial future.It’s your future. Plan it!

10QUESTIONSThe questions in this brochure will help you interviewand evaluate several financial planners to find theone that’s right for you. You will want to select acompetent, qualified professional with whom youfeel comfortable, one whose business style suits yourfinancial planning needs. An interview checklisthas been included for your convenience.1QWHAT EXPERIENCE DO YOU HAVE?A Find out how long the planner has been in2Qpractice and the number and types of companies with which she has been associated. Askthe planner to briefly describe her work experience and how it relates to her current practice.Choose a financial planner who has experiencecounseling individuals on their financial needs.WHAT ARE YOUR QUALIFICATIONS?A The term “financial planner” is used bymany financial professionals. Ask the plannerwhat qualifies him to offer financial planningadvice and whether he is recognized as aCERTIFIED FINANCIAL PLANNERTM professional or CFP practitioner, a Certified Public Accountant/Personal Financial Specialist (CPA/PFS), or aChartered Financial Consultant (ChFC). Lookfor a planner who has proven experience infinancial planning topics such as insurance,tax planning, investments, estate planning orretirement planning. Determine what stepsthe planner takes to stay current with changesand developments in the financial planningfield. If the planner holds a financial planningdesignation or certification, check on his background with CFP Board or other relevantprofessional organizations.1

3QWHAT SERVICES DO YOU OFFER?A The services a financial planner offers4Qdepend on a number of factors includingcredentials, licenses and areas of expertise.Generally, financial planners cannot sellinsurance or securities products such asmutual funds or stocks without the properlicenses, or give investment advice unlessregistered with state or Federal authorities.Some planners offer financial planningadvice on a range of topics but do not sellfinancial products. Others may provideadvice only in specific areas such as estateplanning or on tax matters.WHAT IS YOUR APPROACH TOFINANCIAL PLANNING?A Ask the financial planner about the type ofclients and financial situations she typicallylikes to work with. Some planners prefer todevelop one plan by bringing together allof your financial goals. Others provide adviceon specific areas, as needed. Make sure theplanner’s viewpoint on investing is not toocautious or overly aggressive for you. Someplanners require you to have a certain networth before offering services. Find out if theplanner will carry out the financial recommendations developed for you or refer you toothers who will do so.2

5QWILL YOU BE THE ONLY PERSONWORKING WITH ME?A The financial planner may work with youhimself or have others in the office assist him.You may want to meet everyone who will beworking with you. If the planner works withprofessionals outside his own practice (such asattorneys, insurance agents or tax specialists)to develop or carry out financial planningrecommendations, get a list of their namesto check on their backgrounds.WHATEVER YOURNEEDS, WORKINGWITH A FINANCIALPLANNER CAN BEA HELPFUL STEP INSECURING YOURFINANCIAL FUTURE.3

6QHOW WILL I PAY FOR YOUR SERVICES?A As part of your financial planning agreement,the financial planner should clearly tell you inwriting how she will be paid for the servicesto be provided.Planners can be paid in several ways: A salary paid by the company for which theplanner works. The planner’s employerreceives payment from you or others, eitherin fees or commissions, in order to pay theplanner’s salary. Fees based on an hourly rate, a flat rate, oron a percentage of your assets and/or income. Commissions paid by a third party from theproducts sold to you to carry out the financialplanning recommendations. Commissions areusually a percentage of the amount youinvest in a product. A combination of fees and commissionswhereby fees are charged for the amount ofwork done to develop financial planningrecommendations and commissions arereceived from any products sold. In addition,some planners may offset some portion of thefees you pay if they receive commissions forcarrying out their recommendations.4

7QHOW MUCH DO YOU TYPICALLY CHARGE?A While the amount you pay the planner will8Qdepend on your particular needs, the financialplanner should be able to provide you withan estimate of possible costs based on thework to be performed. Such costs shouldinclude the planner’s hourly rates or flat feesor the percentage he would receive as commission on products you may purchase as partof the financial planning recommendations.COULD ANYONE BESIDES ME BENEFITFROM YOUR RECOMMENDATIONS?A Some business relationships or partnershipsthat a planner has could affect her professional judgment while working with you,inhibiting the planner from acting in yourbest interest. Ask the planner to provide youwith a description of her conflicts of interestin writing. For example, financial plannerswho sell insurance policies, securities ormutual funds have a business relationshipwith the companies that provide thesefinancial products. The planner may also haverelationships or partnerships that should bedisclosed to you, such as business she receivesfor referring you to an insurance agent,accountant or attorney for implementationof planning suggestions.5

9QHAVE YOU EVER BEEN PUBLICLYDISCIPLINED FOR ANY UNLAWFULOR UNETHICAL ACTIONS IN YOURPROFESSIONAL CAREER?A Several government and professional regulatory10Qorganizations, such as the National Associationof Securities Dealers (NASD), your stateinsurance and securities departments, and CFPBoard keep records on the disciplinary historyof financial planners and advisers. Ask whatorganizations the planner is regulated by andcontact these groups to conduct a backgroundcheck. (See listing at right.) All financial plannerswho have registered as investment adviserswith the Securities and Exchange Commissionor state securities agencies, or who are associated with a company that is registered as aninvestment adviser, must be able to provideyou with a disclosure form called Form ADVPart II or the state equivalent of that form.CAN I HAVE IT IN WRITING?A Ask the planner to provide you with a writtenagreement that details the services that willbe provided. Keep this document in your filesfor future reference.6

TO CH ECKthe Disciplinary History of aFinancial Planner or AdviserCertified Financial Planner Board of Standards, Inc.888-237-6275 www.CFP.net/searchNorth American Securities AdministratorsAssociation202-737-0900 www.nasaa.orgNational Association of Insurance Commissioners816-842-3600 www.naic.orgNational Association of SecuritiesDealers Regulation800-289-9999 www.nasdr.comNational Fraud Exchange (fee involved)800-822-0416Securities and Exchange Commission202-942-7040 www.sec.govTO FI NDa Financial Planner in Your AreaFinancial Planning Association800-282-7526 www.fpanet.orgNational Association of Personal Financial Advisors888-333-6659 www.napfa.orgAmerican Institute of Certified PublicAccountants/Personal Financial Planning Division888-999-9256 www.aicpa.orgSociety of Financial Service Professionals888-243-2258 www.financialpro.org7

LEARNAbout Financial Planning OnlineCFP Board's Web site, www.CFP.net/learn, is acomprehensive resource for financial planning,offering useful information for visitors at everystage of the financial planning learning curve.Interactive tools provide help for your personalsituation, including changing jobs, managingdebt, planning your retirement and more. Jointhe eNewsletter for updates and check back regularly to participate in polls and quizzes.The U.S. Securities and Exchange Commission’s Office of InvestorEducation and Assistance has reviewed this publication. The SECdoes not endorse the commercial activities, products or membersof this or any other private organization.The information in this brochure is provided as a public serviceby Certified Financial Planner Board of Standards Inc. (CFP Board).A nonprofit, professional regulatory organization, CFP Boardfosters professional standards in personal financial planning sothat the public values, has access to and benefits from competentand ethical financial planning.It‘s your future. Plan it! is a service mark owned by CertifiedFinancial Planner Board of Standards Inc.This publication may be reprinted for educational and nonprofitpurposes only.C ERTIFIED F INANCIAL PLANNERB OARD OF S TANDARDS, I NC.1670 Broadway, Suite 600, Denver, Colorado 80202-4809Consumer Toll-free Number: 888-CFP-MARK (888-237-6275)P: 303- 830-7500F: 303-860-7388E: mail@CFP-Board.orgW: www.CFP.net/learnCopyright 1997-2004, Certified Financial Planner Board of Standards Inc. All rights reserved.

CHECKLISTfor Interviewing a Financial PlannerPlanner Name:Company:Address:Phone: Date:1 Do you have experience in providing advice onthe topics below? If yes, indicate the number of years. Retirement planning Investment planning Tax planning Estate planning Insurance planning Integrated planning Other2What are your areas of specialization?What qualifies you in this field?3 a. How long have you been offering financialplanning advice to clients? Less than one year One to four years Five to 10 years More than 10 yearsb. How many clients do you currently have? Less than 10 clients 10 to 39 40 to 79 80 4Briefly describe your work history.

5 What are your educational qualifications?Give area of study. Certificate Undergraduate degree Advanced degree Other6What financial planning designation(s) orcertification(s) do you hold? CERTIFIED FINANCIAL PLANNERTM certification Certified Public Accountant/Personal FinancialSpecialist (CPA/PFS) Chartered Financial Consultant (ChFC) Other7What financial planning continuing educationrequirements do you fulfill? hoursevery8What licenses do you hold? Insurance Securities CPA J.D. Other9 a. Are you personally licensed or registered as aninvestment adviser representative with a state(s)?: Yes NoIf no, why not?b. Are you or your firm licensed or registered as aninvestment adviser with the: State(s)? Federal Government?If no, why not?c. Will you provide me with your disclosuredocument Form ADV Part II or its state equivalent? Yes NoIf no, why not?

10What services do you offer?11Describe your approach to financial planning.12a. Who will work with me? Planner Associate(s)b. Will the same individual(s) review my financialsituation? Yes NoIf no, who will?13How are you paid for your services? Fee Commission Fee and commission Salary Other14 What do you typically charge?a. Fee:Hourly rate Flat fee (range) to Percentage of assets under managementpercentb. Commission:What is the approximate percentage of theinvestment or premium you receive on: stocksand bonds ; mutual funds ;annuities ; insurance products; other15a. Do you have a business affiliation with anycompany whose products or services you are recommending? Yes NoExplain