| There are good financial planners and there are bad | | | | is the only strategy that works, even though it is not |
| financial planners. There are also horrible financial | | | | as glamorous as buying stocks. |
| planners and fly-by-night scam artists. Hopefully | | | | Not thinking about real estate or small business. Since |
| you've found yourself a quality planner and are having | | | | most planners only get paid to sell you investment |
| success with them. You should always be on the | | | | products like stocks and mutual funds, they will |
| lookout for the top mistakes that planners make | | | | overlook other forms of investing. If you are |
| most often. | | | | interested in getting involved with real estate or |
| Recommending products that pay a commission. If | | | | starting your own business you will want to seek out |
| your financial advisor isn't charging for the time they | | | | a planner with experience in these areas. |
| spend with you you can be sure that the products | | | | Selling ongoing services. Rarely do you need them, |
| they are supporting are those that pay a commission. | | | | and they establish a conflict of interest for your |
| Thinking too small. Because of the way that they | | | | financial advisor. |
| earn money, they tend to get pigeon-holed into a set | | | | Selling other services. You may see that your planner |
| system and go with that almost exclusively. For | | | | likes to offer more than just investment products. |
| example, a financial planner that also sells life | | | | They may offer you legal services or insurance |
| insurance will likely recommend plans that include | | | | services. You wan to associate yourself with a |
| buying life insurance. | | | | planner that has a strong focus in one area, and get |
| Ignoring Your Employer's Retirement Plan. If you | | | | professional advice in other areas. |
| spend money on the investment options provided at | | | | Being scary. Don't let a financial planner scare you into |
| work, you'll have less money left over to invest with | | | | investing by creating a doom and gloom view of your |
| your financial adviser. A good one will charge you for | | | | financial future. Charts on inflation and the cost of |
| their time, and therefore won't mind if you put as | | | | college are scary, but should not be used to make |
| much money as you can into your employee | | | | you feel like their advice is your only chance of |
| retirement plan. Often times it's one of the soundest | | | | success. |
| investments you can make. | | | | Making you depend on them. Some consultants try |
| Not considering your debt. Since your planner can't | | | | to make it seem like investing is too complicated for |
| earn commission on you paying off loans and | | | | you to handle it on your own. If your financial |
| consumer debt, they often neglect to include it in the | | | | consultant won't encourage you to learn how to do it |
| recommendations. Getting these debts paid off first | | | | on your own you may have to look for a new one. |