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Finding the right financial planner can be a difficult task in a world where financial scams are a dime a dozen. Most scams these days are centered around sketchy financial advisors pushing high-commission annuities or reverse mortgages that aren't needed. Ultimately, carefully screening potential advisors and checking out the plans they offer in detail can help you avoid making costly mistakes.

Current laws allow just about anyone to claim to be a financial advisor. However, there is one designation that can give them some credibility. A Certified Financial Planner (CFP) is an advisor who has to demonstrate proficiency in a broad range of financial planning topics and abide by certain ethical standards. As a result, this is a key certification that should be checked out before choosing an advisor.

It is also important to check out the background of any financial advisor that you find. You'll want to deal with someone who has plenty of experience in retirement planning and any other specialties that you may need. Another important thing to ask is how your advisor gets paid. Some get paid a commission based on which funds they put your money in, which can often turn out to be a conflict of interest. It's best to find one that only gets paid by you.

A final thing to consider is whether or not you need a financial planner at all. Those familiar with the stock market can often invest their own money in a combination of index mutual funds and bond funds. There are many website out there that can tell you exactly which mix is ideal for a planned retirement age. This do-it-yourself mentality can help you save a lot of money both in fees and potential conflict-of-interest funds.

In the end, choosing a financial advisor can be a long process, but doing it right can save (and make) you a lot of money. It is important to find someone reliable and check out exactly how they are getting paid. This can help you avoid fraud and unscrupulous advisors that are just out there to make a buck.

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