How To Find A Financial Advisor

My parents are recently retired and have a poor grasp of how to manage their retirement savings and investments. They have most of their money in private banking and are paying very high fees. How can I find them a reputable independent financial advisor who can give a second opinion on their overall financial picture?

Assurances Ngo Van Tan Financial Planner
600-1001 DORCHESTER SQUARE, MONTRÉAL, QC H3B 1N1, Canada
(514) 867-8268

2007-03-09 09:44:07 by hardoon

Advise on how to find a good financial advisor

hi,

i'm looking for a good personal finacial advisor to help me invest my money in the right direction.

QUESTION>>>> do any of u know how to find honest&reliable financial advisor that knows what he's doing?

thanx in advance

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement. The financial planning process consists of six steps that help you take a COMPREHENSIVE "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes (marriage, children, death, taxes, retirement, estate planning) and feel more secure that your goals are on track.

There are many type of "financial advisors" available for the public. However, like doctors, attorneys and CPAs, financial advisors are not created equally. One of the better nationally accreditted financial advisors is known as a CFP aka Certified Financial Planner. (see links)

Why should you speak with a CFP instead of a "financial planner" at Schwab, Goldman Sachs, eTrade, or the local bank? First the big name institutions usually won't make time with you unless you possess well over 25k, 100k, 250k or 500k. Even if they do meet with you they rarely take the time to create a comprehensive finanial assessment for your unique situation/needs. But most importantly is the fact many are quite bias and have conflicts of interest in how they are paid and most advisors are not CFPs. See this article: http://articles.moneycentral.msn.com/ret ...

A good financial advisor will possess three things:
- a strong list of client referrals whom you should check (make sure to interview the CFP as you would a job candidate)
- no conflict of interest in how they are paid versus fulfilling the clients financial needs (i.e. if someone is paid w/commissions, they it is a red flag if they churn your investment accounts, or likewise advises you to buy insurance that is the most expensive)
- a CFP which demonstrates they're committed to competent and ethical behavior when providing financial planning. Individuals certified by CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® certification process that includes demanding education, examination, experience and ethical requirements.

Financial advisors are all around you, but few possess high ethical standards AND possess a comphrensive financial background AND possess the necessary work experience to objectively help you. Yes you can use the do it yourself financial planning books, but remember none of them are specific for your needs. Also, CFPs dedicate their time when most people are working for a living to provide professional opinions developed just for you. Your needs are grossly different than the individual next to you and/or your coworkers. Read more at the links to educate yourself on the risks and benefits for using a CFP and not settling with just anyone who carries the title "financial advisor".

2007-01-28 17:26:40 by Alexa L

Price: $22.00

how do I start interviewing to find a financial advisor

Step 1. Educate yourself: read Jeremy Siegel, Peter Lynch, and Benjamin Graham.

Step 2. Learn how financial advisors earn their money. There are many different systems, but advisors who charge a fee rather than earn commissions tend to find themselves more in tune with the clients' best interests.

Step 3. Now that you know what you're looking for, ask some financial advisors to discuss two things: their fee structure and their investment philosophy. You also might want to discuss any specific needs you will have and specific goals that you've set, and ask the advisor if they can work with your specific requests. Many advisors today only provide a kind of 'one-size-fits-all' approach to clients, so if you can find one who still provides specialized services to each individual, so much the better. Most importantly, you want an advisor who is trustworthy. If a little voice is telling you that there's something wrong with this person, don't hesitate to walk away. There are other advisors out there. Find one that you're comfortable with.

Step 4. Check them out. Verify with the state authority or the SEC that they do not have any pending legal issues or past indiscretions.

Best of luck to you.

2006-05-30 13:35:00 by Chris

Price: $16.99

Condition: New
ISBN13: 9780446510998
Notes: BRAND NEW FROM PUBLISHER! 100% Satisfaction Guarantee. Tracking provided on most orders. Buy with Confidence! Millions of books sold!

I also want to create an investment account to make my savings money more productive, Im not sure how to start and a financial advisor charges fees that I would rather not pay if I can do it on my own, any advice?

If you are saving for college expenses, you should take advantage of federal tax breaks aimed at families saving and paying for college. These include the following:

Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.

Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. May also be withdrawn tax-free for primary and secondary school expenses.

You can read about these at
http://www.savingforcollege.com/

If you are comfortable with the idea of investing in mutual funds, you can invest on your own. If you have not invested in mutual funds before, you need to read up on this. Some people feel comfortable doing it on their own, others need a financial advisor to hold their hand. I don't know enough about you to say what type of person you are. Below is one link about mutual funds.

http://finance.yahoo.com/funds/mutual_fu nds_101

2007-09-02 19:25:19 by E27G

I have had financial advisors who are nothing more that thieves, yet they continue to work in their field with no accountability. How can I find someone who is knowledgeable and honest?

That's really tough. I can't tell you how many "advisors" are actually salesmen but that doesn't mean that good advisors don't exist.

Step 1: Ask people you know who they use and what they like about that advisor. Also, ask what they may not like about their advisor. Do a web search or look at the FPA website for a financial planner.

Step 2: Interview a few advisors. Most don't charge for an initial consultation. The hard part is not to get suckered into the sales pitch. Instead find out what they will do for you. How often will they meet with you. What services do they provide? How do they choose the investments that they are currently using for their clients? (if you ask how they'll choose an investment for you personally you'll hear about them finding out your risk tolerances, time frame, etc but if you ask how they choose the things they are currently using you'll be surprised how many people can't answer that well. I'd be suspicious of someone who couldn't articulate *why* they are would invest your money in this fund or that stock). oooh - another informative question to ask is if they've ever turned a potential client away and why they did that. That will tell you a lot about the advisor and the type of client that advisor is most happy working with. (Beloved clients get the most attention)

Step 3: find out how they are compensated. The trend in my industry is managed accounts (wrap accounts is another name you'll hear) where the advisor charges a percentage of the assets they are managing. Usually the fee is in the neighborhood of 1% to 1.5% annually. As you interview several advisors, you'll get a feel for what the going rate is in your neck of the woods. The rationale for charging a fee is that if your investments do poorly, they collect less. If your investments do well, they make more. As opposed to working on commission where they get paid regardless of performance. At least that's the reasoning. But if the advisor does very little trading in the accounts he or she manages, paying commissions may cost less in the long run...That's something you have to weigh for yourself.

Step 4: Be wary of too good to be true scenarios - whether it's the can't miss stock or more commonly, an annuity that is pitched as a can't lose investment. Also keep in mind that very few investments are only available for a limited time. Don't get pressured into a fast move.

As an aside: if you're wondering what an annuity is, when you buy an annuity you're basically buying insurance for your investment. And just like car insurance, it's nice to have it if get in a wreck and need the insurance to bail you out, but if you go 5 years without a wreck, you've paid for 5 years of insurance that you didn't use and you don't get the money back. In my experience the insurance an annuity provides is very rarely used, but your returns will be burdened by the cost of the insurance. One thing an annuity does have going for it is that it's a tax shelter - so if you've maxed out your 401k and IRA and have more money you want to defer taxes on, it may be appropriate.

Step 5: Be willing to pay for their services. If you were trying to beat a murder rap, you'd probably pay for a top notch attorney even though you can get a public defender for free. Same goes for a good financial advisor. Of course, you don't want to be gouged, but you must understand that a really good financial advisor won't work for free. If the advisor is willing to really undercut what everyone else wants to charge you, that advisor is probably be desperate for clients. Bad sign.

Good luck!

2006-04-12 11:19:04 by leigh