Specific experts, such as stock brokers or tax preparers, are there to assist you deal with specific aspects of your financial life. That's where financial organizers come in.
Before you start purchasing a coordinator, one word of care: Unlike brain hair stylists, surgeons, and plumbing technicians, a financial planner doesn't need to crack a book, take an examination or otherwise show competence prior to hanging out a shingle. In other words, anybody can claim the title - and countless poorly trained individuals do. That means finding the right organizer for you and your household will take more work than investigating the very best new flat-screen TELEVISION. And so it should. It's your financial future that's at stake.
Here's the best ways to start:
The old-boy network
One easy way to start trying to find a financial coordinator is to request suggestions. Ask him for the names of organizers whose work he's seen and admired if you have an accounting professional or a lawyer you trust. Professionals like that are in the very best position to judge a planner's capabilities.
A licensed financial planner (CFP) or a Personal Financial Professional (PFS) need to Finity Group LLC pass a rigorous set of tests and have specific experience in the financial services field. This alphabet soup is no warranty of excellence, however the initials do reveal that a planner is severe about his or her work.
You get what you spend for
Numerous financial coordinators make some or all their loan in commissions by offering financial investments and insurance, but this system establishes an instant conflict between the coordinators' interests and your own. Why? Since the items that pay the highest commissions, like whole life insurance and high-commission mutual funds, usually aren't the ones that pay off finest for the customers. In general, we think the best advice is to avoid commission-only coordinators. You also must be wary of fee-based planners, who earn commissions and who likewise get fees for their suggestions.
That leaves fee-only financial planners. Fee-only planners might charge a flat charge, a percentage of your investments - generally 1 percent - under their management or per hour rates starting at about $120 an hour.
Where to obtain aid
If people you trust cannot recommend organizers in your area, or if you wish to expand the field from which you pick, you can get lists of regional coordinators from the following trade organizations. Check out each group's website.
If all this sounds familiar, it might be time for you to start shopping around for a financial planner.
Before you start going shopping for a coordinator, one word of care: Unlike brain cosmetic surgeons, plumbings, and hairdressers, a financial coordinator does not have to break a book, take an exam or otherwise show proficiency prior to hanging out a shingle. One simple way to begin looking for a financial organizer is to ask for recommendations. A qualified financial coordinator (CFP) or a Personal Financial Specialist (PFS) should pass a rigorous set of tests and have certain experience in the financial services field. Lots of financial planners make some or all of their loan in commissions by selling investments and insurance coverage, but this system sets up an immediate dispute in between the planners' interests and your own.
