The Importance of A Financial Plan - Choosing an " Advisor "

Do you know how much money you need toagent.
save to meet your retirement goals? Have youLastly avoid the "financial advisors" or "wealth
started to save for your children's post-secondarymanagers "at banks, credit unions, saving and
education and college? Will your family be able toloans etc.
maintain the lifestyle that you have establishedThese are people who are on salary, putting in
and created in the event of death or disability?time.
These are just a few of the many issues thatTheir only concern is going for lunch and going
can be addresses in a business plan.home at 5 and not getting their boss in trouble so
Most people have not determined their financialas to draw attention and ire to themselves .
goals let alone developed a plan to reach them.They may help you accidentally.
You should first make basic decisions on the roadHowever they hide behind the façade and
to start your planning process. It is often said ifpower of their institution. And t hey will generally
you do not plan where you want to go you willnot be in the position when you need their help
end up somewhere else.with some problem or disaster . They will be long
You should and must follow a systematicgone transferred to another branch or position
approach to ensure that your goals are welland maybe even being promoted . Lots of luck in
defined and that are set of achievable steps aretracking them down and getting their help.
established and appropriate benchmarks haveGenerally in such organizations as in government
been put in place.jobs ultimately no one is accountable at least to
Should you use an investment planner or anotheryou as a consumner and investor.
outside party? That is a very good question.At least with a commission salesperson you have
Woody Allen's joke in 1960 was that an insurancethe ultimate threat "Screw off. I am unhappy. I
salesman was a person who invested youram leaving and you will lose the commissions and
money till it was all gone is as timely and accurateresidual commissions coming to you. So you had
as it was in the 60's.better take care of this problem .
Only the titles have changed to fool most.A written financial plan incorporates many
The current term is now "Investment Counselor ".different aspects of financial planning. Retirement
Or "Wealth Manager " or some such nonsense.planning is always popular, as is planning for a
You have several optionschild's education.
A counselor who comes as part of the package -Estate planning is growing in importance as baby
free. Remember that there is no such thing as aboomers age. Investment and tax planning are
"free lunch".essential components of a comprehensive plan
The counselor may not charge you directly butand other issues such as saving for a major
somewhere someone has to pay. It is you. Thepurchase or pension buyout options can be
investment or insurance company pays the agentaddressed.
a commission to sell you the product. Guess whoWhatever your financial goals may be the actual
ultimately pays the shot - you do of courseselection of investment products does not occur
somewhere in the product cost or fees that youuntil much later in the process. The investment
will pay .vehicles that you and or your advisor select
Never believe that the agent is there for yourshould be chosen for their ability to help you meet
benefit. They are there solely for the commission.your long term personal and financial goals. In
True, some agents are better , more honest asorder to ensure that your portfolio is appropriate
well as more sincere than others - actuallyfor your objectives you should make certain that
interested in helping you.your financial pan is current especially in regards
If you find such a person they are very rare andto taxation before you invest.
exceptional in the financial field. Treat them likeFinancial planning is a process, not a one time
goldevent. A plan that works today may be
Secondly there are individual professionals who willinappropriate tomorrow due to changes in your
help you for a fee.life and financial and / or personal circumstances.
Do not laugh at the cost.It is important that you constantly review and
These people are doing fee for service asaccess your portfolio for changes and growth
opposed to getting commission off the sales.either yourself or with meetings with your
These people are more objective and notadvisor.
affected by the gold of the commission shining inDon't wait for spring. The sooner you begin the
their eyes.sooner you will be on your way to your chosen
Often the real cost to you as investor is muchfinancial dreams...
less than a "free service" from a commission