When do you need a financial planner?

Certified financial planner is a professional who uses the financial planning process to help individuals work out a plan to meet their life goals.

Basically they are known with a qualification such as Certified Financial Planner (CFP) or Chartered Financial Consultants (ChFC).

In financial planning, there are 3 categories. Single purpose, multi-purpose and comprehensive financial planning. For single purpose financial planning, they are basically the person who sell insurance and unit trust / mutual fund. The current development shows there also a person who will help you particularly in estate planning.

The independent CFPs and ChFCs usually can show you more holistic plan because they are not tied-agents who are attached with any financial institutions.

It is very important to seek for a certified financial planner because if you have any problems with your agent or financial planner, you can always seek a recourse from central bank or securities exchange commission, particularly in Malaysia, Bank Negara Malaysia and Securities Commission.

You should find a financial planner for a specific advice on your financial matter especially when you are in these situations:

1. In need of expertise in certain areas of your finances for example how to evaluate the risk level of your financial portfolio, retirement plan and so on;

2. You want to get a professional opinion about the financial plan that you have developed for yourself;

3. You don’t have time to do your own financial planning;

4. You have an immediate need or face an unexpected life event such as a birth, inheritance or major illness;

5. You feel that a professional adviser can help you improve you current financial portfolio; or

6. You know that you have to improve your financial position but don’t know where to start.

Knowledge is Power - Francis Bacon