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

Do you know how much money you need to save tofrom a commission agent. Lastly avoid the "financial
meet your retirement goals? Have you started toadvisors" or "wealth managers "at banks, credit unions,
save for your children's post-secondary education andsaving and loans etc. These are people who are on
college? Will your family be able to maintain thesalary, putting in time. Their only concern is going for
lifestyle that you have established and created in thelunch and going home at 5 and not getting their boss in
event of death or disability? These are just a few oftrouble so as to draw attention and ire to themselves .
the many issues that can be addresses in a businessThey may help you accidentally. However they hide
plan. Most people have not determined their financialbehind the façade and power of their institution.
goals let alone developed a plan to reach them. YouAnd t hey will generally not be in the position when you
should first make basic decisions on the road to startneed their help with some problem or disaster . They
your planning process. It is often said if you do not planwill be long gone transferred to another branch or
where you want to go you will end up somewhereposition and maybe even being promoted . Lots of luck
else. You should and must follow a systematicin tracking them down and getting their help. Generally
approach to ensure that your goals are well definedin such organizations as in government jobs ultimately
and that are set of achievable steps are establishedno one is accountable at least to you as a consumner
and appropriate benchmarks have been put in place.and investor. At least with a commission salesperson
Should you use an investment planner or anotheryou have the ultimate threat "Screw off. I am unhappy.
outside party? That is a very good question. WoodyI am leaving and you will lose the commissions and
Allen's joke in 1960 was that an insurance salesmanresidual commissions coming to you. So you had
was a person who invested your money till it was allbetter take care of this problem . A written financial
gone is as timely and accurate as it was in the 60's.plan incorporates many different aspects of financial
Only the titles have changed to fool most. The currentplanning. Retirement planning is always popular, as is
term is now "Investment Counselor ". Or "Wealthplanning for a child's education. Estate planning is
Manager " or some such nonsense. You have severalgrowing in importance as baby boomers age.
options A counselor who comes as part of theInvestment and tax planning are essential components
package - free. Remember that there is no such thingof a comprehensive plan and other issues such as
as a "free lunch". The counselor may not charge yousaving for a major purchase or pension buyout options
directly but somewhere someone has to pay. It is you.can be addressed. Whatever your financial goals may
The investment or insurance company pays the agentbe the actual selection of investment products does
a commission to sell you the product. Guess whonot occur until much later in the process. The
ultimately pays the shot - you do of courseinvestment vehicles that you and or your advisor
somewhere in the product cost or fees that you willselect should be chosen for their ability to help you
pay . Never believe that the agent is there for yourmeet your long term personal and financial goals. In
benefit. They are there solely for the commission. True,order to ensure that your portfolio is appropriate for
some agents are better , more honest as well asyour objectives you should make certain that your
more sincere than others - actually interested in helpingfinancial pan is current especially in regards to taxation
you. If you find such a person they are very rare andbefore you invest. Financial planning is a process, not a
exceptional in the financial field. Treat them like goldone time event. A plan that works today may be
Secondly there are individual professionals who willinappropriate tomorrow due to changes in your life and
help you for a fee. Do not laugh at the cost. Thesefinancial and / or personal circumstances. It is important
people are doing fee for service as opposed to gettingthat you constantly review and access your portfolio
commission off the sales. These people are morefor changes and growth either yourself or with
objective and not affected by the gold of themeetings with your advisor. Don't wait for spring. The
commission shining in their eyes. Often the real cost tosooner you begin the sooner you will be on your way
you as investor is much less than a "free service"to your chosen financial dreams...