Your Money: Choosing a financial planner

By Matt Solberg on February 11, 2023.

In Canada, anyone can call themselves a ‘financial planner’, ‘financial adviser’, ‘financial consultant’ or investment adviser,’ to name just a few. This is because financial planning is not regulated in most Canadian provinces and territories.

When you go to see your doctor, dentist, accountant or lawyer, you can be confident they have spent years completing the educational and practical requirements to do their job competently. But when meeting a new financial planner, it’s possible they may not have the education, knowledge or experience required to help you reach your financial goals, so asking some key questions is very important;

What are their credentials?

Look for someone with a CFP (certified financial planner) designation. CFP professionals adhere to strict regulations and ethical standards and unlike some other accreditations; CFP holders must have a minimum level of work experience and take part in continued education and testing to maintain their designation.

How long have they been a financial planner for?

Experience is a virtue. To keep your money safe, it is important to choose an adviser with experience. Everyone has to start somewhere, but if an adviser has under two years experience, ask them if someone else will be reviewing their advice.

How do their fees work and how are they compensated?

Advice comes at a cost, and it is important to understand that cost, whether it is commission, hourly, a flat fee or a combination. But it is also important to understand that the lowest cost is not always the best choice. Sometimes quality of advice which will actually increase your wealth in the long run can come at a premium.

What services do they provide and how closely do they work with their clients?

It is not just about investment advice; a good financial planner should put together a comprehensive financial plan and motivate you to keep you on track. Think of your relationship with your financial planner as a partnership, with both of you working to achieve your financial goals. Ask questions when you don’t understand something and be honest with yourself and your planner about your financial situation.