5 Questions to Ask When Choosing a Financial Planner

Selecting a financial planner is a crucial decision that impacts your long-term financial security. Not all planners operate with the same expertise or ethical standards, so it’s essential to ask the right questions to ensure they align with your needs. Here are five key questions to help you evaluate a planner’s qualifications, ethics, and suitability.

1. What Are Your Qualifications?

Your financial planner should have recognised credentials such as the Certified Financial Planner Practitioner (CFP®) designation, which requires rigorous education, exams, and adherence to a fiduciary duty—meaning they must always act in your best interests. A CFP® professional is trained in comprehensive financial planning, covering areas such as investments, taxation, retirement, and estate planning.

At the very least, someone offering you financial advice should hold a Qualified Financial Adviser (QFA) designation. A QFA is a recognised qualification that allows individuals to provide financial advice on regulated products such as mortgages, insurance, and pensions. However, a CFP® professional has additional expertise in holistic financial planning and is bound by higher ethical and fiduciary standards.

It is important to understand the difference between a financial planner and a financial advisor. A financial planner typically provides a more strategic, long-term approach to financial well-being, while a financial advisor may focus more on investment advice and product recommendations.

2. What Is Your Investment Philosophy?

A good financial planner tailors investment strategies to your goals and risk tolerance rather than taking a one-size-fits-all approach. Some prioritise capital preservation, while others focus on long-term growth or socially responsible investing.

Ensure their approach aligns with your expectations. Do they offer a detailed, bespoke financial LifeMAP®, or do they provide a simpler strategy? The right fit is about more than just qualifications – it’s about how well they understand your specific needs.

3. How Will We Work Together?

A successful financial planning relationship requires ongoing communication and collaboration. Ask how often you will meet, whether they provide regular financial reviews, and how they handle major life changes or market shifts.

Will they proactively reach out with updates or wait for you to initiate contact? Do they offer online tools and resources for tracking your financial progress? A planner should provide clear expectations on how they will support you over time.

4. Can You Provide References or Testimonials?

Reputable planners should have a strong track record. While testimonials and client reviews are helpful, verify their regulatory standing. Have they been subject to complaints or disciplinary actions? Check with the Central Bank of Ireland or the Financial Services and Pensions Ombudsman.

Client feedback can reveal a planner’s strengths and weaknesses. Ask about their communication style, transparency, and ability to navigate market downturns.

5. Where Is My Money Held, and How Is It Protected?

When selecting a financial institution to safeguard your investments, it is essential to understand where your funds are held and the measures in place to protect them. Typically, client assets are held by major banks (e.g. Pershing – a Bank of New York subsidiary and the biggest custodian in the world) or life companies (think Aviva, Irish Life, New Ireland, Standard Life, Zurich), that are subject to rigorous regulatory oversight. These institutions are required to adhere to strict financial standards and are regularly audited to ensure compliance with industry regulations. If a planner suggests transferring your money to an unfamiliar or unregulated institution, more questions need to be asked!

Choosing the Right Planner: Ethics, Qualifications, and Fit

Selecting a financial planner isn’t just about expertise – it’s about trust. By asking these five key questions, you can ensure they are well-qualified, ethical, and aligned with your needs. A CFP® professional, bound by strict ethical and fiduciary standards, provides confidence that your financial future is in safe hands.

Most importantly, consider whether they are the right fit. Do they offer the tailored, strategic planning you require, or would a simpler approach be more suitable? The right planner will align with both your financial goals and personal values.

At Chartered Capital, we’re dedicated to providing the highest level of service, with a focus on strategic, tailored financial planning. If you think we might be a good fit for you, we’d love to hear from you.