Just as do-it-yourself plumbing could lead to disastrous results, so too could do-it-yourself financial planning.

According to a recent poll of Angie’s List members, one in five said they have no financial plan in place. Of those who do have a fiscal plan, nearly half said they devised it on their own.

“Many people have a misconception that financial planning is only for the wealthy,” said Angie Hicks, founder of Angie’s List (www.angieslist.com), the nation’s leading provider of consumer ratings on service professionals, including financial planners. “You don’t have to have a trust fund to make smart money decisions but you might need some good advice. Hiring a qualified, objective financial planner can help you get the most out of every dollar – and it could even help you avoid mistakes that could cost you big.”

Angie’s List recently contacted highly rated financial planners to share their wealth of knowledge on preparing a fiscal strategy.

“Whether it’s a life-changing event like a marriage, the birth of children, a career change, or you’re just ready to manage your overall financial strategy, a good financial planner should help you integrate all aspects of your financial life and bring into focus your financial goals,” Hicks said. “In light of some of the recent news events, trusting your financial adviser is at the core of consumers’ concerns, so before you hire, it’s important to interview at least three or more professionals and find someone with whom you are comfortable.”

A financial planner can help with:
Ø      College planning
Ø      Debt management
Ø      Estate planning
Ø      Insurance
Ø      Investments
Ø      Retirement
Ø      Saving
Ø      Taxes

“There are a variety of financial planners available – investment advisers, personal financial advisers, asset managers and comprehensive financial planners,” Hicks said. “Some work on a fee-only basis – meaning that they don’t take commissions from sales of investments, life insurance, or annuities – while others work on an annual retainer or take a percentage of the profits from your investments. Others make commissions on products they sell. A meeting with a reputable planner should clarify your needs and offer a guideline for the type of planner that best meets your situation.”

Angie’s List offers 10 tips for hiring a financial adviser:

1.)  Check certification: Hire an adviser who is a Certified Financial Planner and/or Resident Investment Adviser. Check Angie’s List, the CFP Board of Standards, the National Association of Personal Financial Advisors and the Financial Industry Regulation Authority.
2.)  Ask for references: Ask the adviser for referrals from at least three other clients with similar financial situations as yours and ask them how the adviser has performed.
3.)  Review experience: Ask about the adviser’s experience, education, and continuing training. Do your research to see if there have ever been lawsuits against the planner. Ask the adviser for a copy of their Form ADV, which details all of that information and must be registered with the U.S. Securities Exchange Commission.
4.)  Do your research: Become familiar with financial terms and planning strategies. Establish what you are looking for in a financial adviser and what you want out of the relationship. If the financial planner uses terminology you’re not familiar with, be sure to ask for clarification. Agreeing to something you don’t fully understand could be costly.
5.)  Ask the hard questions: “Why should I hire you? How can you help me? How long have you been doing this? Have you ever been fired? What’s in your portfolio?” These are all questions you should ask, along with, “Where should I invest my money?” As one highly rated planner on Angie’s List said, if the adviser has an immediate answer for the last question without taking the time to get to know you and your financial goals, find someone else.
6.)  Beware of guarantees: Avoid any adviser who guarantees a stock’s performance, accepts cash, asks for a check for investments in his or her personal name, or says anything that sounds too good to be true.
7.)  Ask how the adviser is paid: Fee-only advisers only make money on the advice they give and do not earn commissions on products they sell. Hiring a fee-only adviser can help ensure that the advice you receive is in your best interest, rather than resulting in a large commission for the adviser.
8.)  Ask how often you’ll meet: This will vary depending on what you’re asking of the planner and the type of relationship you’re looking for, but it’s important to understand how frequently you should review your finances with the adviser. For investment planning, you should expect proactive meetings and updates.
9.)  Ask about investment statements: You should receive investment statements from a respected custodian that can independently verify the value of your investments, rather than directly from your financial adviser.
10.)  Don’t settle: If you’re uneasy with the financial planner’s recommendations, get a second opinion. Trust your instincts. If you feel like the planner is trying to sell you something rather than listen to your needs and goals, look for another planner.

“Ultimately, you want to hire an adviser who is going to listen to you and customize a plan that fits your lifestyle,” Hicks said. “It’s important to have a well-structured plan in place to help secure your current financial status, address unexpected expenses, pay off debt, fund your children’s education and your retirement.”

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