Special to the Echo

With all the scandal surrounding fraudulent financial advisors these days, it’s not surprising that many investors are tempted to rely on their own instincts when it comes to investing their money. Unfortunately, the number of products to be found on the market is so great that individual investors often soon feel lost. The good news is that is still possible to find trustworthy finance professionals.

There are several types of professionals in this field. Financial planning is not regulated in most Canadian provinces, so ensure that the consultant you choose, whether a financial coach, advisor, or planner, is a Certified Financial Planner through the Financial Planning Standards Council or has an equivalent provincial certification. These are the only professionals who can cover all seven areas of financial planning: legal aspects, inheritance, insurance and risk management, finance, taxation, investment, and pensions.

Your certified financial planner will ask you to consider three essential elements: your risk tolerance, your liquid assets, as well as your short, medium, and long term goals. After this, it is up to him or her to present you with the different ways of achieving your objectives. If a proposed investment sounds too good to be true, you can bet it is. Talk to another financial professional to get a second opinion, and research the proposition.

Stay away from a consultant who puts pressure on you. Financial planners are meant to reassure you and provide you with pertinent information based on the facts and your abilities.