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