When choosing the right financial planning professional, you need to ask them some key questions. Here are five questions to help you make the right choice:

1)      What experience do they have? If you chose a rookie financial planning professional you will probably get a cheaper service, but a more experienced adviser is more likely to produce better results.

Don’t jump to conclusions though. The younger, less experienced adviser might be dynamic, more enthusiastic, and a great planner to have on board, where as the older more experienced planner might be set in their ways, or waiting for the right moment to retire. Look for an answer which matches your own ethos. There is no wrong or right answer.

2)      What are their qualifications? All financial planning professionals require basic financial qualifications, but to be honest they are not rocket science, and can be passed with a few weeks study. It is very easy to get involved in financial services with the minimum of knowledge.

Look for those who have advanced qualifications, or are members of professional organisations such as the Chartered Insurance Institute or the Institute for Financial Planning. This shows a commitment to gain important knowledge. Those who only have the basic qualifications may be looking for a quick income in an industry which is lucrative to salesmen as well as financial planning professionals. Be warned!

3) How does the financial planner get renumerated? You usually are given three options; the adviser will get paid by commission direct from the lender, by fee from yourself, or a combination of the two. Advisers who typically work on a commission basis will try and sell you something, otherwise they do not earn. Fee based advice tends to be more impartial, and represents better value for money in most instances. Find out exactly how much they expect to earn, and do a sense check as to whether they are asking too much for what they are doing.

Be wary of the planner who charges fees in excess of what they would earn from commission. You may feel you are getting a better service by paying a fee, but the fee needs to be proportionate to the work which is being done.

A typical fee might be between £150 and £250 per hour for the work that is done.

4)      Ask them to detail any conflicts of interest. Do they get an introducer fee for referring you to a third party, or do they have close working relationships with particular insurance companies. If so, find out why, and make a judgement call on whether this is ethical.

If the financial planner recommends any financial solutions, ask them why it is the best for your circumstances, and make sure you understand the answer. Ask them what else they considered, and why they rejected it. Ask them if any recommendation is flexible, and ask them what features it has which benefits you. Ask them to put it in writing too!

5)      What is their approach to financial planning. How long do they spend creating a plan and strategy, and how long do they spend promoting financial products? How do they establish how much risk you need to take,  and how do they forecast cash flow into the future.

So called financial planners who cannot answer these questions without bumbling will probably be sly salesmen in disguise. Most, if not all of these questions should be answered without you having to ask, but I reckon 99 out of 100 times they will not.

Sometimes it is difficult to chose between planners, but try hard to ensure that you do not end up with the smooth talking salesman, as it could ruin everything you are trying to achieve. You do not want someone who is target or commission biased helping you plan your future!!