Scott Tominaga Suggests To Avoid Common Mistakes While Hiring a Financial Planner


The necessity of logical financial planning can never be overrated. It is a unique strategy that gets individuals set to be capable to attain their financial goals. Having a financial plan helps people manage the inflow and outflow of cash and meet recurring financial obligations while having the aim of getting financial stability after their retirement. Scott Tominaga is an expert specializing in the area of personal financial management, wealth management, and advisory.

He is well-known in the industry for his dedicated financial services to the banking sector, stock trading, financial management, etc. Currently, he is specializing in financial advisory for individual and business entrepreneurs. He states while hiring a financial advisor, people need to avoid five major mistakes.  

Choosing an Advisor Who is not of Fiduciary standard

As defined, a fiduciary is a professional who is ethically and legally bound to perform his/her duty considering the best interest of their client. They are supposed to stay away from conflicts of interest while serving their clients. Thereby, one needs to ensure while hiring an advisor that the professional is not a registered fiduciary since they are likely to suggest investment instruments that they feel best option for their clients. They are not obligated to make sure whether or not any client gets the best return of it because they are mainly focused on their interest. 

Going for One Who Follows ‘One-Size-Fits-All’ Approach

Financial planning is such a subject, which cannot be addressed with a ‘one-size-fits-all’ approach. Professionals must prepare a custom strategy that needs a high level of expertise in the domain to formulate a financial plan matching the income, expenses, spending habits, and financial objectives of the client. This applies to business as well. The lack of understanding of the needs and objectives of one’s financial plan could be destructive rather than doing anything good for the individual. So, before hiring someone, people should ensure to get a list of the professional’s previous clients and inquire them about their satisfaction level with the services of the expert.

Hiring the First Financial Planner Once Met

Hiring a financial advisor is essential. But people need to remember that impulsive decisions and hurry are the causes of making mistakes. Considering the importance of financial planning their life, they should spend adequate time researching well before choosing one. Apart from getting referrals, taking the assistance of Google to shortlist a few advisors, interviewing them, and thereby picking one makes sense. 

Hiring without Checking Credentials

This can be a big mistake. Scott Tominaga suggests people not get tempted simply by seeing a business card imprinted with certain big qualifications and hire the professional on that basis. Financial planning is a complex domain and advisors must undergo certain test procedures and should be equipped with the necessary, licenses, credentials as well as references. So, individuals should not hesitate to ask for those documents and accordingly hire one who is properly certified for example, with a Certified Financial Planner degree.

Confusing Financial Planners with Brokers

Typically brokers focus on a specific segment of the financial goal, for example, helping individuals in developing their investment portfolio. On the contrary, financial planners like Scott Tominaga take care of their client’s entire financial life comprising budgeting, insurance, tax planning, estate planning, investment management, etc.

Post a Comment