| If you're like many Americans, the whole | | | | compensated. It's certainly within your right |
| topic of financial planning is more than a | | | | to know if they're working for your interest, |
| little daunting. There are professionals for | | | | or theirs. The incentives that financial |
| that, right? Well yes, and no. There is an | | | | planners receive to sell an insurance |
| entire profession devoted to financial | | | | company's policies are often so lucrative |
| planning and those in it want you to think | | | | that the shine of gold can alter their |
| that you need them. But do you? | | | | judgment. Do you get excited when your |
| | | | financial planner wins a fantastic vacation |
| All it takes to become a financial planner is | | | | to a beautiful resort because he was able to |
| a few business licenses, a short five-day | | | | convince you to buy a product that may or may |
| course, a few fees, a test, some sales | | | | not be the best for you? |
| training and the ability to sell, sell, sell. | | | | |
| Few financial planners are certified and even | | | | While no one objects to a professional being |
| certification is no guarantee of competence. | | | | fairly compensated for services rendered, you |
| | | | can be sure that the less you understand and |
| To further complicate matters, there are some | | | | the less you are informed; the more it will |
| excellent financial planners who carry no | | | | cost you. You need to be sufficiently |
| certification. My financial planner isn't | | | | educated so that you can make responsible |
| certified but he leaves no stone unturned in | | | | decisions with a financial planner and not |
| being informed. Perhaps his best skill is | | | | leave the decision of how much and where to |
| that he listens to what his clients have to | | | | invest solely in their hands. |
| say. Most financial planners never really | | | | |
| learn financial planning strategies. They | | | | You don't have to have an economics degree to |
| don't have time because they have to reach | | | | learn the basics of money management and |
| their sales quotas. | | | | investing. If you spend most of your life |
| | | | working and earning money, doesn't it make |
| Most financial planners are actually | | | | sense to spend some time learning how to |
| insurance salesman. They get their biggest | | | | manage it? That doesn't mean you shouldn't |
| fees and commissions from selling insurance | | | | utilize the services of a financial planner, |
| policies. Certainly, insurance has its place | | | | it means that if you choose to work with one, |
| in a portfolio, but financial planners often | | | | you have enough knowledge to know if what |
| recommend their clients put way too much of | | | | he's offering is in your best interest. |
| their money into insurance products. And many | | | | |
| times the client doesn't even realize that | | | | Remember that a financial planner works for |
| what he's buying is actually a repackaged | | | | you. You hire him or her to execute your |
| universal life or variable universal life | | | | wishes and advise you. No one has more |
| policy. | | | | interest in the success of your retirement |
| | | | account or other investments than you do. You |
| One of the most important questions to ask a | | | | are the only person who has no conflict of |
| financial planner is how he or she is | | | | interest in choosing your investments. |