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