Are there different kinds of financial planners?
Yes. There are lots of people who call themselves “financial planners.” You probably want to look for a financial planner that is a certified financial planner or CFP who has met the criteria of the CFP board. You also probably want to find a financial planner who doesn’t sell products or manage assets. If the financial planner is a broker, then their compensation is based on the quantity of commissions they earn for the products they sell. If the financial planner manages money for a living, then they can’t really give you unbiased advice about buying a house or buying an annuity, because those might conflict with their interests of maximizing their assets under management. The best kind of financial planner provides you with completely unbiased financial guidance about your whole financial picture – from budgeting, taxes, and investments, portfolio analysis, and risk management to education costs, housing, charitable donations, retirement spending, and shortfall risk. What is a CFP?
