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