Choosing a Financial Planner in Denver, Colorado

TL;DR:Choosing a financial planner in Denver means looking beyond titles. Key traits include fiduciary duty, holistic planning, transparent fees, clear communication, and local presence. These factors help ensure trustworthy, tailored guidance aligned with your financial goals.

• Fiduciary planners are legally bound to put your interests first
• Holistic planning addresses short- and long-term financial needs
• Fee-only structure avoids commission-based conflicts of interest
• Communication clarity builds trust and understanding
• Local advisors may offer better insight into local laws as well as face-to-face support

What qualities, competencies, and credentials are important when choosing a financial planner in Denver, Colorado? Some of the most important factors include:

• Fiduciary status.
• A holistic approach to wealth management and personal financial strategy.
• A fee-only and transparent cost structure.
• Effective, clear, and practical communication.
• Local presence and in-person support when needed.

Why are these considerations especially relevant when choosing a financial planner in Denver? Let’s briefly review exactly what a financial planner is, then take a closer look at each of these key qualities.

What is a Financial Planner?

A financial planner is a professional who provides financial advice and guidance, ideally helping clients manage their wealth and build a financial plan for their future.

There are several titles that financial professionals in this field may use, such as financial planner and financial advisor. These broad titles are generally not regulated, so there isn’t always a clear difference in financial planner vs financial advisor, for example. In fact, many people, regardless of relevant knowledge and experience, can use these general titles.

What’s more important are fiduciary status – a legal obligation to put client interests first – and specific credentials controlled by accrediting boards. Learn more about these concepts below.

What to Consider when Choosing a Financial Planner in Denver

1. Fiduciary Status

A fiduciary works to gain positive results or benefits for their clients, and not their own, as the Consumer Financial Protection Bureau explains.

Fiduciaries are obligated by oath and by law to put their clients’ interests first. That means they make decisions and provide financial advice with their clients’ financial stability as their primary goal.

Some, but not all, financial planners and financial advisors are fiduciaries. One way to determine if a financial professional is a fiduciary is to check if they have the CERTIFIED FINANCIAL PLANNER^® credential.

A professional who displays the letters CFP^® next to their name has proven their financial knowledge, abilities, and ethical standards through examination and continuing education.

As you choose a financial planner, you can and should ask any prospective partners if they carry this credential, or another that obligates them to act as a fiduciary.

Why? Because their investment advice, wealth management guidance, and the other information and suggestions they offer must support your financial goals and objectives.

Holistic Approach to Financial Planning and Wealth Management

A holistic view of financial planning and wealth management considers all major financial needs, wants, and obligations on the individual level, in both the short term and the long term. That approach supports a more comprehensive financial plan for the future.

Holistic retirement planning and overall personal finance management avoid issues that can come with overly targeted approaches, such as:

• Siloed strategies. For example, tax reduction strategies are important, but they must be put in the context of overall financial stability. Focusing only on tax reduction may lead to missed opportunities in other areas of financial management that would provide a greater overall benefit.
• Lack of short-term or long-term perspective. Short-term and long-term financial goals, strategies, and needs should be aligned and support one another in the big picture. Too much focus on one or the other can cause issues either now or in the future.

There are times when prioritizing a certain aspect of financial planning or wealth management is desired or necessary, of course. One advantage that a holistic planning strategy provides is a continued focus on the big picture, even when these temporary needs arise. Balancing the short term and long term can mean more financial stability in the future.

Transparent, Fee-Only Cost Structure

As a client, you deserve to easily understand how and when you will be charged for the services of a financial planner.

Transparent costs can make it easier to determine if the value of services provided is worth their price on a personal level. Additionally, advisors who earn part or all of their income from commissions are normally incentivized to sell specific financial products or services. At times, this can lead to conflicts between a client’s interests and the interests of the advisor.

Fee-only advisors don’t have this potential conflict of interest because they don’t have a financial incentive to promote or sell certain products or services. Instead, they earn money by maintaining relationships with clients and continuing to provide guidance and advice.

Clear, Understandable, and Useful Communication

A strong relationship with a financial advisor is built on their provision of guidance, information, and potential options for the future. In other words, a well-rounded advisor needs not only knowledge and experience, but also the ability to communicate well with clients.

Staying informed and updated is crucial because, in simple terms, it’s your money. You deserve to know what the plans for it are and how your advisor is working to achieve those goals.

Effective communication leads to a clear understanding and a collaborative approach, keeping you involved and informed.

Local Presence and In-Person Support

When you choose a financial planner in Denver, you do not necessarily need to pick an advisor with a local presence. However, it’s worth considering.

A local financial planner can meet with you in person, possibly making it easier to talk through complex options and important decisions. A financial planner based in Denver may also have more knowledge of and experience with state and local laws than a provider in another part of the country.

There are some potential benefits and very few, if any, drawbacks to working with a local financial planner. It’s not a requirement, but it is an important factor for some individuals and families.

Dechtman Wealth Management: Experienced, Informed, Local Financial Planning in Denver

Dechtman Wealth Management is proud to offer:

• Fiduciary financial planners
• A holistic approach to managing wealth
• A transparent and fee-only cost structure
• Clear, understandable communication with clients
• Local presence and in-person support in Denver

Our personalized approach to wealth management and decades of experience in the Denver area are two more key reasons why many of our clients form long-term relationships with us.

Schedule your complimentary assessment to learn more about partnering with our fiduciary financial advisors in Denver.