Financial Planners

Choose A Financial Advisor — A qualified financial adviser can provide advice and guidance and provide services including investment management, income tax preparation and estate planning.

Saving for retirement just makes good sense, but when retirement is still a long way in the future and you are intent on living now, the task can seem daunting.

Too often, people look at retirement preparation as a last-minute sprint instead of a long-term marathon. The process should begin early in one’s career and you don’t need a degree to figure it out. The process can be eased by involving a qualified financial adviser.

A qualified financial adviser can provide advice and guidance and provide services that might include investment management, income tax preparation and estate planning.

Building a sufficient retirement savings may require putting a rein on spending during the earning years. Your financial adviser can tell you how much you need to save and then guide you through what can be a confusing investment strategy so that the money you invest will give a good return.

Your local banking institution may offer free or low-cost adviser services, along with printed or online information that would be helpful, such as retirement calculators, trust and estate services, insurance options and others.

The AARP offers these guidelines to finding a competent financial adviser:

• Verify the individual’s credentials and get client reference.
• Study your options and don’t hire an adviser until you are certain he or she offers what you want for your particular circumstances.
• Be clear up front about the adviser’s fees. There are various ways an adviser can be compensated.

Saving for retirement need not be overwhelming. Take advantage of information provided by your employer and your financial institutions. Spend your money before retirement with an understanding of how that will affect the future and team up with someone knowledgeable about retirement finances. And then – happy retirement.

Financial Advisors — Be specific and go with the advisor who will meet your particular needs.

If you have decided it is time to involve an expert in the handling of your assets, what questions should you ask before selecting that expert?

What are your charges and how do you calculate them? This information may be on the potential planner’s website, but be clear if he/she charges an initial fee, whether charges are based on assets under management and if he/she stands to benefit from any products they may want to sell you. That would create incentive for the advisor to sell your particular products.

What licenses, credentials or other certifications do you have? There are four main types of financial advisors: certified financial planner designation is harder to achieve than chartered financial consultant. The former requires a comprehensive board exam. The latter does not demand the test, but uses the same curriculum. If you need someone just to manage money, you might opt for a registered investment advisor. If you have high income or own a small business, a certified public accountant may be your choice. A CPA may also qualify as a personal financial specialist through additional training.

What services does your firm provide? This question may screen out services you may NOT expect to receive from a particular provider. Some financial planners focus on retirement, insurance, estate planning or tax planning. Be specific and go with the advisor who will meet your particular needs.

What types of clients do you specialize in? Some financial planners have a niche, serving clients with particular interests such as charitable giving or socially responsible investments or the problems related to marriage or divorce. As a professional factor, most financial advisors tend to relate best to people within 10 years of their own age. Those who are closer to retirement, for instance, can relate to clients facing the same challenges.

May I see a sample financial plan? There is a lot of variation among plans. If you are provided a complex stack of pages complete with graphs and charts regarding things you don’t understand, likely you wouldn’t relate to your own plan any more easily. A sample might guide you in choosing an advisor whose approach meets your specific needs.

What is your investment approach? If you already have a firm preference about how to invest, you need to know if the advisor you are contemplating is on the same track. If you prefer low-cost funds, ask if the advisor would use actively managed funds or passive investments. If you are willing to be risky in hopes of a large return, say so. Discuss risk tolerance and goals.

How many times will you expect to meet? After an initial planning meeting, some advisors do not see the client again for a year. Some clients need more support than that. How much control are you willing to cede to your money manager? Some surveys suggest that more frequent meetings result in the most satisfaction for the majority of clients.

Will I work directly with you or with team members? Often, you will meet annually with the advisor you select, with additional contacts during the year with a team member. Companies differ on this issue. One approach is not better than the other if the bottom line is to serve your needs. But the more you know before you make a commitment, the more satisfactory the relationship is likely to be.

Why should I choose you to handle my financial affairs? If the answer comes close to “I’m your savvy best friend, financially,” you are on the right track.

After a conversation with a potential advisor, ask the next questions of yourself: Did he or she talk most of the time? Does he or she appear genuinely interested in my circumstances and not just the numbers? Am I sure he or she will act based on my goals, financial background and philosophies about money? Based on these answers, make your choice.