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The first thing that comes to most people's mind when they hear "financial planning" is investments. Indeed this may be an important part of a financial plan, but it is only one part and many things need to be considered before deciding on investments.

To get the most out of the financial planning process, you should consider a comprehensive approach.
The three key characteristics of comprehensive financial planning are:
1) That it considers all your personal and financial situations to the extent that these can be uncovered, clarified, and addressed through information gathering and counseling by the planner.
2) That it takes advantage of all the techniques and expertise utilized in more narrowly focused approaches to financial problem solving. This means that even though you are taking a broad approach, you still need expert advice on specific financial decisions.
3) That you should gain a clear understanding of your current financial position, the risks involved in reaching your goals and the financial instruments that will be utilized in the process.

To make this process work the planner must be an excellent listener and be able to help you articulate your financial and personal goals. Then all the relevant data must be collected and analyzed. The planner then develops a plan for achieving your goals. Where I further differentiate my approach is that, I let you decide what involvement I will have in implementing your plan. It can vary from being available to answer questions, to showing you how to manage your own investments, or to implementing part or the entire plan for you. For more complex plans, I will make use of other professionals or work with your CPA, attorney or other financial professional.

My approach is similar to family doctors'. They get to know you and your medical history. They are able to handle your day-to-day medical needs and advise you on maintaining your health. However, they can detect when a specialist may be needed to treat an ailment and then counsel you on the recommended course of treatment.

I believe that this approach will provide you with the most cost-effective professional financial advice, while giving you the knowledge of and control over your financial well-being.

Many other organizations offer financial advice. Banks, insurance companies, stock brokers, and mutual funds are all offering financial advisory services so that they can manage your investments or sell you a product. This is fine as long as you realize you are paying handsomely for this service and you may not really be getting a good value or the correct investment. Usually the quality of the service varies directly with the size of your portfolio. For most people this means you are getting generic advice from someone who is trying to sell you something. Most of these "advisors" do not have any significant financial planning training except in the products they sell. Since their focus is very narrow, many times the advice you get does not factor in your overall financial situation or goals.

To avoid these pitfalls you should utilize a financial planner to some degree. However, using a financial planner does not guarantee you will get advice that is 100% in your best interest. Many planners are compensated by commissions on the financial products they sell, so there could be a conflict of interest. This will not be an issue in most cases, but utilizing a fee-only planner eliminates this potential. My practice is strictly on a fee-only basis.