When you're ready to work with a financial planner, choosing one can be a difficult. It's your money. You want someone who can give you good advice. These questions can help you find that person.

How long have you worked as a financial planner?

There is no substitute for experience. Be sure to ask candidates how long they have worked in the investment industry. Also ask where and for whom a planner worked, and if he or she holds any professional certifications, licenses, or designations. Certifications to look for include Certified Financial Planner (CFP), Certified Public Accountant-Personal Financial Specialist (CPA-PFS), and Chartered Financial Consultant (ChFC).

What is your area of expertise?

The six general areas of financial planning are income allocation, risk management, investing for wealth accumulation, tax planning, retirement planning, and estate planning. Be sure your potential planner's expertise is in the area that you require assistance with.

What services do you offer?

Services vary among financial planners. Some offer advice only. Some offer advice and sell financial products. Some may not offer the financial products that interest you.

How are you compensated?

Planners should state, in writing, how much they charge and how they are paid. Typical compensation methods include fees (hourly or flat rate), percentages, and commissions. Generally clients pay for fee- and percentage-based services, while broker-dealers pay commissions to the financial planners who sell their products. Consider the potential conflict of interest inherent in commission-based advice. Also, note whether a planner receives higher commissions for selling one investment over another. For more details on fee- vs. commission-based planners, check out the article below.

Do you owe me a fiduciary duty?

A planner who owes you a fiduciary duty (a "fiduciary") represents your interests first and foremost. Planners who are not fiduciaries are held to a lesser standard of "suitability" instead. Suitability suggests that although the financial product is appropriate for a particular client, it is not always in the client's best interest.

Do you have a financial interest in the entity that houses my account?

Ideally, planners should not have a financial interest in the entity that houses your assets or has direct custody of you assets. This creates a conflict of interest. The use of an independent third-party custodian or clearing firm helps prevent fraud.

Will you provide references from clients?

• Securities and Exchange Commission
• Financial Industry Regulatory Authority (FINRA)
• North American Securities Administrators Association (NASAA) Certified Financial Planner (CFP) Board

1. Through upfront fees, which can be hourly or by a percentage of the assets they manage for you
2. Through commission, which means the planner is paid each time he or she buys or sells an investment.

Fee-only payment structures are more desirable for some clients because there's no financial incentive (aka, commission) for a planner to buy or sell. Working on commission can encourage planners to make trades, rather than solely look out for your best interest-called a "fiduciary" duty. (As noted above, you want to be sure that the planner you choose is a fiduciary.)

Sometimes commission-based brokers can represent their planning as being free of charge. Beware of offers that seem too good to be true! You're likely playing them through fees and commissions on the investments they choose for you.

To find a fee-only certified financial planner, visit the National Association of Personal Financial Advisors (NAPFA), which is the largest group of fee-based financial advisors.

By Emmy Callero