Finding A Financial Adviser

There is a lot you can do on your own to help prepare and plan for your retirement. But there may be times when you need advice from a professional. A financial adviser can:

• Help with tax strategies where a mistake could be expensive in the long run;
• Create an estate plan or review one you've prepared yourself;
• Review your investment decisions (e.g., annually, quarterly, one-time review) and advise how you might do better;
• Help you with a budget and spending plan;
• Create an asset allocation plan;
• Manage your money, if you have a healthy amount accumulated, but don't have the time to micromanage it;
• Choose an insurance or long-term care policy (watch out for salespeople disguised as advisers);
• Decide how to manage a lump-sum retirement distribution option;
• Choose whether to accept or waive joint survivor benefits on your pension;
• Help you through a difficult transition, such as a divorce, retirement or death of your spouse; and
• Develop a college-funding plan for your children or grandchildren.

Don't be afraid to ask questions, and challenge your adviser if you do not like the suggestions he or she is making.

Finding a planner

First decide why you want a planner, then your goals will be clearer. Financial planners often are grouped into categories based on how they get paid.

• Fee-only financial planners often earn a flat fee, either per hour or for specific services. Some charge a percentage of the money they manage.
• Fee-offset planners will have a set fee but will deduct from it commissions earned on any products they sell.
• Commission-only, where they get paid only if they sell something.
• Fee plus commission, where planners charge a fee and also sell products on which they are paid commissions.

There are good financial advisers that fall into all of the above groups. As a prospective client, you should not be embarrassed to ask them how they are compensated and how much they are compensated.

There are two primary sources for financial planners:

• The Financial Planning Association offers referrals to its members, who are financial professionals who have received the Certified Financial Planner™ (CFP^®) designation after completing extensive financial planning coursework and financial planning work experience. The FPA offers the brochures "How a Financial Planner Can Help You," and "How to Choose the Right One" by calling 800-282-PLAN or visiting their Web site.
• The National Association of Personal Financial Advisors offers referrals to its membership of fee-only planners, as well as a brochure, "How to Choose a Financial Planner."

Tip: Check out a financial planner first. You can check the certifications of, and any disciplinary actions against, a financial planner through the Certified Financial Planner Board of Standards. You also can get a free disciplinary report from the National Association of Securities Dealers.

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