How Involved Do I Need to Be With a Financial Planner?
To some extent, one’s level of involvement with a financial planner is a matter of personal choice; some people like to be very involved and are interested in financials, others are less so inclined be involved. However, there is a base level of involvement you can and should expect with your financial planner in order to safeguard your finances and insure that you are getting the level of service that you are paying for.
At a minimum, you should perform due diligence on your financial planner prior to working with him, and conduct an annual review of that diligence. A financial planner can produce stellar results for years on end before trouble is seen, so it’s good to ensure that you are up-to-date with due diligence.
You should expect to see and read all pertinent account statements. Never leave the final analysis of your accounts, and their performance, to your financial planner, or anyone else. You should be informed as to the status of your accounts and their performance over time.
In terms of decision-making about asset allocation, this is where the lines become more fuzzy. While you are the final decision maker, you are paying a financial planner for his advice, so it is important that you are comfortable with that notion. You should never allow transactions on your account that you do not understand. If you don’t understand a particularly strategy, or part of a strategy, make sure that you financial planner explains it until you do.
In addition, only you can determine what your financial goals are. Your financial planner can help, can provide you with the right questions to ask, but ultimately, it is your call as to whether you want to aim for maintaining your current lifestyle, downscaling or upscaling.
Involvement with your financial planner is to some extent a matter of personal taste. However, there are some basic levels of involvement you must maintain to ensure your goals are clearly understood, your wishes are being followed, and your finances are safeguarded.