The Importance Of A Financial Plan Choosing An Advisor

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

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