PROTALK
CORNER:
Choosing a Financial Advisor
Most small-business owners work a lot of hours just to make a comfortable living. But if you don’t plan early and start saving money for your mature years, you could find yourself working a lot longer than you want just to pay the bills.
While we live in a world of online investing, no load mutual funds and self-directed retirement accounts, most of us need the talents of a good financial planner to help establish and reach our goals. When searching for your financial expert, it’s important to keep in mind that all financial planners are not created equal. Unlike accountants, attorneys and investment brokers, financial planners are not closely regulated. Because of this, it’s important to understand some of the basic differences between financial planners. Who They Are – Many financial planners have a
series of letters after their names. The most prestigious is the CFP or Certified Financial Planner. This means that the individual has completed extensive studies in financial planning and has demonstrated a certain level of ability. Frequently, letters after a person’s name refer to insurance certifications, which may or may not qualify that person to help you establish a good financial plan.
The best rule to follow is to ask exactly what the designations mean. How They Charge – Financial planners have three different ways of charging for services. Straight commission planners don’t charge a fee. While this might sound good, it’s the least desirable arrangement. Under this method you pay commission on investments the financial planner advises you to make. Less-than- ethical planners could push bad investments just so they can earn higher commissions.
Fee only planners charge a straight fee, ranging from a few hundred dollars to several thousand dollars, depending on the complexity of your plan. Because they don’t earn commissions they give unbiased professional guidance. The third type is a blend of the others. The planner charges a fee and may also receive commissions from the investments they suggest to clients. Once you understand the basic differences of financial planners, you can begin the selection process. Interview at least three or four candidates before making a decision.
| Ask these questions: |
| |
• |
What is their educational background? |
| |
• |
How long have they been doing financial planning? |
| |
• |
Will they provide at least three references of current clients? |
| |
• |
Have they ever been cited for disciplinary reasons by a professional or regulatory body? |
| |
• |
How and what do they charge? |
| |
• |
Do they provide ongoing reviews and planning strategies for you? If you don’t have a solid plan for your financial future get started now. A good financial planner could be worth the fees many times over. |
| |
|
How AFS Benefits Can Help: |
|
ProTalk
The small-business consultants at ProTalk can
answer your business-structure questions and more. Call 800-492-1016 and ask for ProTalk, Monday through Friday, 8 a.m. to noon, CST. You’ll have your answer within the next business day.
OppenheimerFunds Single Ksm Plan
You can now receive many of the 401(k)
benefits that have been traditionally reserved for big companies. With the OppenheimerFunds Single Ksm Plan you can defer up to $13,000 of your salary, in addition to making a deductible profit-sharing contribution of up to 25% of
compensation, with a combined contribution limit of $41,000 per year.
For information, call
800-492-1016 or visit www.afswebsite.org
|
|
>>Back to Common
Sense
|
