Financial decisions are as worrisome for young people as they are for seniors, but for those nearing retirement getting trustworthy advice is crucial.
Working with a Financial Advisor You Can Trust
When faced with an array of complex financial decisions, such as whether to consider comparing quotes for a reverse mortgage, where to invest or when to begin making withdrawals from a retirement fund, seniors often choose to turn to a financial advisor. However, finding a trustworthy advisor, someone you feel comfortable sharing the most intimate financial details with, can be hard.
CNNMoney.com has excellent advice on how to find a financial planner as part of their guide to retirement.
Ask for Referrals
The first place to start is similar to the way you might look for a dentist, doctor, or lawyer: ask your friends. Try to get recommendations from friends with similar financial needs, not someone with significantly more or less money than you. You can also try the Financial Planning Association which helps you search for a planner.
Check Credentials
After obtaining three or four recommendations from friends or colleagues and the Financial Planning Association, check the credentials of these individuals at the Certified Financial Planner Board of Standards. Planners with different levels of education and experience can be identified as a Certified Financial Planner (CFP), a Personal Financial Specialist (PFS) or a Chartered Financial Analyst (CFA).
Interview Questions
Set up a few interviews with the recommended planners to see which one is a good fit for your individual needs. CNNMoney.com suggests the following questions for the initial interview:
- What do you charge and what method do you use to get paid?
- What are your credentials?
- How much experience do you have?
- What planning services do you provide and how often do you see clients?
- Does your planning include specific recommendations for investments or other products?
- What are you selling and who's paying your commissions?
- Can I get referrals from other clients?
- Do you have any questions for me?
During the interview, seniors should evaluate the personality of their potential financial planner to determine their comfort level and ease of communication with someone who could have an important impact on their retirement.
Michele Lerner
Michele Lerner is a freelance writer with twenty years of experience writing articles and web content for newspapers and magazines on topics related to real estate, personal finance and business. Her clients include The Washington Times, Bankrate.com, Urban Land Magazine, NAREIT's Real Estate Portfolio and numerous Realtor association publications. Michele's first book,
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