Building Wealth: How to Choose a Financial Planner
Posted 29. Mar, 2010 by Anthony in Uncategorized
Unfortunately, many people today don’t begin early enough to plan their retirements, nor do they fully grasp the principles of growing retirement income. This is due in part to the lack of solid planning for retirement. It’s not that there isn’t good investment advice out there, but payment to a consultant is usually involved if you want custom information. So, many people opt to go it alone, only to find out later that they’re not where they want to be financially. That’s why it’s a good idea to use a financial professional to help you plan your retirement. And because it’s your money, you should do some research first so you can ask intelligent questions questions of the financial advisor and understand the answers. Getting the lay of the land, financially speaking, will also save you money if your advisor charges an hourly rate.
Here are some of the subjects you should investigate before you hire a professional financial advisor:
How life insurance impacts your financial bottom line
Not everyone needs information on VUL insurance and other forms of insurance protection because they don’t have anyone depending on them and causing them to need life insurance. But those who do need it should choose wisely. Understanding the difference between whole life, term life and variable universal life (VUL) will allow you to pick the option best for you. And let me give you one piece of information right out of the gate: cash value policies, such as whole life and universal life can usually be counted on to produce a bad return on investment and will probably cause your family to have inadequate coverage. So you should bear that in mind when you speak to a financial consultant.
The difference between load and no-load mutual funds
Some financial advisors work on commission only, so it’s in their best interest to suggest “load” funds (those that have service fees). Sometimes you’re better off paying by the hour for financial consulting, so you can ensure the advice is objective. Once you understand the financial difference between no-load and loaded funds, you’ll see why.
Have an idea when you want to retire and how much money you’ll need
It’s a good idea to know approximately when you’ll retire and how much money it will take to maintain your lifestyle before you meet with a financial planner. That will help him form a plan.
Once you’ve done your homework, there’s just one more thing to do: ask your friends or family if they have any recommendations before you choose a financial planner. Once you have that information, check whether the candidates have built wealth in their own lives. If you don’t see evidence of that they did it for themselves, there’s no way they’ll be able to do it for you!
Tags: retirement investing, life insurance basics, life insurance advice, financial advice, mutual funds investing, retirement advice <BR/>Related posts:
Brant Breece
19. Apr, 2010
Good infomation here, thanks.
Ty Heineman
23. Apr, 2010
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25. Apr, 2010
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