The Importance of A Financial Plan - Choosing an " Advisor "

Do you know how much money you need to save toLastly avoid the "financial advisors" or "wealth
meet your retirement goals? Have you started tomanagers "at banks, credit unions, saving and loans
save for your children's post- secondary educationetc.
and college? Will your family be able to maintain theThese are people who are on salary, putting in time.
lifestyle that you have established and created in theTheir only concern is going for lunch and going home
event of death or disability? These are just a few ofat 5 and not getting their boss in trouble so as to draw
the many issues that can be addresses in a businessattention and ire to themselves .
plan. Most people have not determined their financialThey may help you accidentally. However they hide
goals let alone developed a plan to reach them. Youbehind the facade and power of their institution. And t
should first make basic decisions on the road to starthey will generally not be in the position when you need
your planning process. It is often said if you do not plantheir help with some problem or disaster . They will be
where you want to go you will end up somewherelong gone transferred to another branch or position
else.and maybe even being promoted . Lots of luck in
You should and must follow a systematic approach totracking them down and getting their help. Generally in
ensure that your goals are well defined and that aresuch organizations as in government jobs ultimately no
set of achievable steps are established andone is accountable at least to you as a consumer and
appropriate benchmarks have been put in place.investor.
Should you use an investment planner or anotherAt least with a commission salesperson you have the
outside party? That is a very good question. Woodyultimate threat "Screw off. I am unhappy. I am leaving
Allen's joke in 1960 was that an insurance salesmanand you will lose the commissions and residual
was a person who invested your money till it was allcommissions coming to you. So you had better take
gone is as timely and accurate as it was in the 60's.care of this problem .
Only the titles have changed to fool most.A written financial plan incorporates many different
The current term is now "Investment Counselor ". Oraspects of financial planning. Retirement planning is
"Wealth Manager " or some such nonsense.always popular, as is planning for a child's education.
You have several optionsEstate planning is growing in importance as baby
A counselor who comes as part of the package -boomers age. Investment and tax planning are
free. Remember that there is no such thing as a "freeessential components of a comprehensive plan and
lunch". The counselor may not charge you directly butother issues such as saving for a major purchase or
somewhere someone has to pay. It is you. Thepension buyout options can be addressed.
investment or insurance company pays the agent aWhatever your financial goals may be the actual
commission to sell you the product. Guess whoselection of investment products does not occur until
ultimately pays the shot - you do of coursemuch later in the process. The investment vehicles that
somewhere in the product cost or fees that you willyou and or your advisor select should be chosen for
pay .their ability to help you meet your long term personal
Never believe that the agent is there for your benefit.and financial goals. In order to ensure that your portfolio
They are there solely for the commission. True, someis appropriate for your objectives you should make
agents are better , more honest as well as morecertain that your financial pan is current especially in
sincere than others - actually interested in helping you.regards to taxation before you invest.
If you find such a person they are very rare andFinancial planning is a process, not a one time event. A
exceptional in the financial field. Treat them like goldplan that works today may be inappropriate tomorrow
Secondly there are individual professionals who willdue to changes in your life and financial and / or
help you for a fee.personal circumstances.
Do not laugh at the cost. These people are doing feeIt is important that you constantly review and access
for service as opposed to getting commission off theyour portfolio for changes and growth either yourself
sales. These people are more objective and notor with meetings with your advisor.
affected by the gold of the commission shining in theirDon't wait for spring. The sooner you begin the sooner
eyes.you will be on your way to your chosen financial
Often the real cost to you as investor is much lessdreams...
than a "free service" from a commission agent.