To get a financial planner? How to interview?

References, do you feel comfortable around the person, do they explain concepts clearly so you can grasp them, how can they help you accomplish your goals, do his/her ideas align with your intuition.

What is causing you to consider getting a financial planner?

There has been way too many dirty stories about stock brokers, investment firms, and financial advisers/planner over the last few years that I just don't believe a word those people say. I was sick to my stomach what I saw on the news a couple years ago. This guy recorded conversations he had with his co-workers. They were laughing their arse off about earning a ton of commission after telling their clients to invest in some crap. Knowing fully that right from the get go their clients was going to lose their life savings. I don't remember which firm it was but it was one of those very huge and well known firm. Yes, I know that not all financial planners/invest firms are dirty but....

Are there any fee based only financial planners who don't earn commissions? I have no idea. That would be your best bet. Completely fee based (you the client pays for his/her advice and he/she doesn't earn commission on the other side). If there is such a thing, that would be it, they may be least bias.

There are so much information out there with books and online info that you can read up on and learn. No one is going to care about your money more than you.

Quote from calnbs : There has been way too many dirty stories about stock brokers, investment firms, and financial advisers/planner over the last few years that I just don't believe a word those people say. I was sick to my stomach what I saw on the news a couple years ago. This guy recorded conversations he had with his co-workers. They were laughing their arse off about earning a ton of commission after telling their clients to invest in some crap. Knowing fully that right from the get go their clients was going to lose their life savings. I don't remember which firm it was but it was one of those very huge and well known firm. Yes, I know that not all financial planners/invest firms are dirty but.... Are there any fee based only financial planners who don't earn commissions? I have no idea. That would be your best bet. Completely fee based (you the client pays for his/her advice and he/she doesn't earn commission on the other side). If there is such a thing, that would be it, they may be least bias. There are so much information out there with books and online info that you can read up on and learn. No one is going to care about your money more than you.

So do you not drive cars anymore because there are lots of stories about accidents and duis?

Quote from PiratesSayARRR : So do you not drive cars anymore because there are lots of stories about accidents and duis?

Car accidents and DUIs generally don't occur because of greed and/or malice towards the victim, so I don't really see your analogy working out to well.

Quote from PiratesSayARRR : So do you not drive cars anymore because there are lots of stories about accidents and duis?

LMFAO. Is that the best you can come up with? AHAHAHAHAHAHAHA!!!.

OP,

What I'm trying to say is, it doesn't hurt to read up on investments and have some knowledge of how investing works before going all out on the words of a financial planner, it is still best you know a thing or two about investments. The only way to be able to confirm what a financial planner's advice is in your best interest is to know the topic itself.

Knowledge is a good thing to have. It's like car repairs, house repairs, or you going out and buying something. You want to know as much about "it" before using your hard earned money on it. You just don't want to take "their" words that it is the whole truth and that their interests is in your best interests.

Quote from calnbs : LMFAO. Is that the best you can come up with? AHAHAHAHAHAHAHA!!!.

Both of you are having a hard time grasping the analogy. Just because there are articles about greedy financial planners doesn't mean that all are bad in fact most are not bad. You are using a generalization which isn't a valid argument.

The analogy aligns because there are many news reports about accidents and DUIs, yet you still continue to drive cars.


Nothing wrong with your point about educating yourself.

Quote from travathian : Car accidents and DUIs generally don't occur because of greed and/or malice towards the victim, so I don't really see your analogy working out to well.

You completely missed the point. The point was that there are articles about accidents every day it doesn't mean you are going to get in one. It is applying the same generalization that because there are bad people I am going to be associated with a financial planner that doesn't have my interests at heart.

Quote from calnbs : There has been way too many dirty stories about stock brokers, investment firms, and financial advisers/planner over the last few years that I just don't believe a word those people say. I was sick to my stomach what I saw on the news a couple years ago. This guy recorded conversations he had with his co-workers. They were laughing their arse off about earning a ton of commission after telling their clients to invest in some crap. Knowing fully that right from the get go their clients was going to lose their life savings. I don't remember which firm it was but it was one of those very huge and well known firm. Yes, I know that not all financial planners/invest firms are dirty but.... Are there any fee based only financial planners who don't earn commissions? I have no idea. That would be your best bet. Completely fee based (you the client pays for his/her advice and he/she doesn't earn commission on the other side). If there is such a thing, that would be it, they may be least bias. There are so much information out there with books and online info that you can read up on and learn. No one is going to care about your money more than you.

Good thing you don't make stereotypes about a group of people becuase you heard something bad on the news. Look in any line of work and you can find stories of people in it to scam the consumer. What about mechanics or repairmen that over charge and make up false repairs, does that mean I should never trust any mechanic/repairman again?

There are fee based planners out there, it is actually fairly common. The fee can be based on a lot of different factors such as assets under management, an hourly fee, a flat fee.

Quote from PiratesSayARRR : References, do you feel comfortable around the person, do they explain concepts clearly so you can grasp them, how can they help you accomplish your goals, do his/her ideas align with your intuition.

Thanks

Quote from Brian1 : What is causing you to consider getting a financial planner?

The matress is getting full. Seriously, it's hard to say without disclosing my financials to the whole world... I want to make sure that I am properly prepared for the rest of my life.

Quote from calnbs : No one is going to care about your money more than you ... What I'm trying to say is, it doesn't hurt to read up on investments and have some knowledge of how investing works before going all out on the words of a financial planner, it is still best you know a thing or two about investments. The only way to be able to confirm what a financial planner's advice is in your best interest is to know the topic itself. Knowledge is a good thing to have. It's like car repairs, house repairs, or you going out and buying something. You want to know as much about "it" before using your hard earned money on it. You just don't want to take "their" words that it is the whole truth and that their interests is in your best interests.

I agree with everything you've said. I'm a professional and I believe that you get (can) get something from (the right) experts. Historically, I've been very sucessful with investing, but it really sucks the life out of me. I think I know what I need to, but getting second opinions never hurt.

Whenever I talk to financial planners where I work (up to 35 of them a day) I would ask them, whats the worst part about being in your line of work. The answer I heard the most was "There are a hundred other guys doing the same thing I do in this town." I asked them how they retain clients. It's basically their charisma.

They then tell me that they ask prospects to come down for a free consult. They take the clients records and see what plan they are on now and what we can offer them. A week later after they call them in and say "Look the plan you are on is the same one I'd put together. If you ever have any financial changes and want another consult then I'd be happy to analyze your new situation." or show them a better plan of course.

Clients enjoy the no pressure approach. Try to find someone that makes you comfortable. Go with a reputable name company. Just call up and ask if they offer a free consult for a prospect such as yourself.

Fee-only, not fee-based or commission-based, and make sure the fees don't cost too much. Get this status in writing because the Washington Post once asked about 100 planners by phone who claimed to be fee-only, and the vast majority worked on commission. Get everything in writing. All planners except the very newest ones can sound really good and seem superior to what you can do on your own. Unfortunately fee-only planners often charge a lot to draw up a plan (they have to study a lot of your records), like $3,000-$8,000, and that may not be economical if you don't have a ton of money.

I'd trust negative references a lot more than positive ones because a lot of investors don't know much and think their adviser did well when that just wasn't the case.

It may require as much knowledge to choose a financial planner as to make investment and financial choices on your own. You don't want to end up with somebody like this guy, a planner and lawyer who went bankrupt:



The guy's been highly political, and some mutual funds run by political nuts have done terribly.

Thanks.