How Firefighters Should Choose a Financial Planner

By CRACKYL staff

A financial planner can be a valuable asset in helping you manage your money and achieve your financial goals. But you have to find one first, and identifying the right financial planner for you can be a daunting task, especially since firefighters have unique financial needs. 

These needs can pertain to irregular income, on-the-job risks, and education and training.

A financial planner can help you create a budget that accommodates your lifestyle, and develop strategies for saving and investing. He or she can also help you protect yourself against unexpected medical expenses, and explore financing options for continuing education and training.

A financial planner who understands these unique needs can be a great resource for firefighters. Here’s what to look for:

1. Experience and Credentials:

• Certifications: Look for financial planners who have professional designations like Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or Certified Public Accountant (CPA). These certifications indicate a certain level of expertise and adherence to ethical standards.   
• Experience: Ask the financial planner about his or her years of experience and their track record of success. A planner with a proven history of helping clients achieve their financial objectives is more likely to be a good fit.

2. Investment Philosophy and Approach:

• Risk Tolerance: Assess your comfort level with investment risk and ensure the planner’s approach aligns with your risk tolerance. A conservative investor may not be a good match for a planner who specializes in high-risk, high-reward strategies.
• Investment Style: Understand the planner’s investment philosophy, whether it’s passive investing (e.g., index funds) or active management (e.g., stock picking). Make sure his or her approach is consistent with your investment goals.

3. Fees and Compensation:

• Fee Structure: Ask the planner about their fee structure. Common fee models include hourly rates, flat fees, and commission-based compensation. Consider the pros and cons of each model and choose one that best suits your needs.
• Conflicts of Interest: Be aware of potential conflicts of interest. For example, commission-based planners may have an incentive to recommend products that generate higher commissions, rather than those that are necessarily in your best interest.

4. Communication and Compatibility:

• Communication Style: Ensure you can communicate effectively with the planner. A good planner should be able to explain complex financial concepts in a way you can understand.
• Compatibility: It’s important to feel comfortable and confident in your relationship with your planner. Trust and rapport are essential for a successful financial partnership.

5. References and Reviews:

• Ask for References: If it’s possible, ask the planner’s previous clients for references. Contact these references to get their firsthand experience and insights. 
• Check Online Reviews: Look for online reviews and testimonials from the planner’s clients. While not always definitive, they can provide information about the planner’s reputation and quality of service.

By carefully considering these factors, you can boost your chances of finding a financial planner you’ll like working with, and who can steer you toward your financial goals.

CRACKYL Magazine recommends you seek professional financial advice before you make any financial decisions.