Selecting a Financial Advisor

As you approach retirement, are you confident that you have a plan in place to sustain you for the next 10-20-30+ years?  Putting all the pieces together may seem like a daunting task.  If you are not certain that you have a solid retirement and investment strategy, you might benefit from enlisting the services of a skilled financial advisor.  In this article, we’ll provide some ideas to consider.

Knowledge is Power

Now is the time to take a personal inventory of what knowledge is required to construct a successful financial plan and whether or not you have the time and skills to manage it.  For example, are you competent in managing your investment portfolio for the long haul or do you need expert guidance on how to choose and structure your retirement assets and make adjustments along the way?  Do you know how much money you need annually to maintain your lifestyle and keep up with inflation?  Are you up to date on strategies to minimize your tax burden?  Do you have a plan to distribute your assets to your heirs?

 What Do You Expect From an Advisor?

To begin, set some of your own expectations on the type of services that you desire.  This will help you pare down the list of potential interviews and help you steer the discussion toward finding your ideal financial advisor.  Do you want a one-time report to get you started or would you like a relationship with a trusted partner for many years to come?  Are you looking for guidance on financial planning, investments, or both?  Do you want someone that will consistently meet with you and is available for questions throughout the year or is meeting once per year enough?

Interview Topics for a Retirement Advisor

Credentials:  Ask the advisor about their education and credentials.  Do they hold a CERTFIED FINANCIAL PLANNERTM certification or the Chartered Financial Analyst ® designation? You can check the status of the advisor by referring to websites such as brokercheck.finra.org or adviserinfo.sec.gov.

 Approach:  Get a feel for the advisor’s philosophy on risk and reward.  Do they have reasonable expectations for potential investment returns?  Ask about what data goes into constructing an investment portfolio and retirement plan and how often they review it.  

 Office:  Consider the size of the firm.  Are you dealing with a sole person or are there others in the office available to help provide service?  Is the firm so large that you will be just a number?

 Compensation:  Advisory firms have many ways to be compensated for their services.  The advisor should be up-front when explaining their fees and how you will be paying for them.  Ask if they are a fiduciary and/or fee-only.  These will determine whether the advisor may be motivated to steer investments toward those that provide them with incentives and commissions.

 Get Your Retirement Plan in Place Today

If you are wondering if you can afford to retire - and stay retired, call Professional Financial Management to get your plan in place today.  We are a fee-only fiduciary with your best interest at the forefront.  We are happy to schedule a free no obligation meeting to introduce ourselves.