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Let’s be honest, your money is the product of your sweat and tears … and sometimes your blood. I think it’s safe to say that you want to find a good financial in whom you have complete and total trust. But how do you do that? The process is easy, it starts with the internet and ends with an interview – yes you can do that.
Here are four ways to find a good financial advisor:
Search for financial advisors in your area
A Google search is the quickest and easiest way to find financial advisors in your city. If you want to get super specific you can even add in an area of expertise that you’re looking for such as Financial Advisor, Brooklyn, Millennials. This is the base of your search. From here you can create a short list based on their location, description and the information you find about them online.
Google will return results based on (among other things) the relevance to your search and the popularity of the website (also known as the authority a.k.a. legitimacy) as well as how up to date they are. Regularly updated websites will usually rank higher in Google. I would choose five financial advisors to start. Also, the top results with the word AD to the left, pay to be seen at the top of your search results.
Check them out on social media
From the five financial advisors you chose, narrow it down to a short list of three advisors based on their online presence. Have a look at their website and see if you get a good vibe. Take a look at their biography and see if their area of expertise aligns with your goals (such as buying a new home or saving for retirement) and ask yourself if their product offering meets your needs. Look up the financial advisors on LinkedIn and see if you like their overall presence and if the content they’re sharing is relevant to the type of services you need.
Ask about their credentials and education
Now it’s time to initiate personal contact. Send an email or give the advisors a call. This will give you an idea of what their level of customer service is like. If they get back to you within 48 hours, it’s a good sign. If your call or email goes unanswered for several days, it’s a big red flag.
Once you are in contact with the three advisors on your short list, have a phone conversation with them and ask about their designations, credentials and education. Ask if they operate with a firm, where they are licensed and which designations they have (i.e. securities dealer, life insurance and financial planner). I don’t know about you, but I wouldn’t trust just anyone with my hard-earned money. I would like to know (if I wasn’t a financial planner myself) that my money is being managed by an experienced professional.
Meet them in person – at their office
Talking with a person can give you a good idea of whether your personalities match. It also will give you an idea of how the general working relationship will be. Narrow your short list down to two advisors and book appointments to meet them in person. It’s preferable to meet them at their office to ensure the operation is legit. Be open with them and ask questions about service expectations and fees. After meeting with them, take all the information home and follow up with them in a few days. It’s never a good idea to make an on-the-spot decision when it comes to your money.
And voila, you just found yourself a good financial advisor.
Can you imagine going on an extended vacation without making any plans?
No websites or tour guides consulted. No hotel reservations made. No itinerary mapped out.
Of course not. If you wanted your vacation to be a success, you’d budget enough money to cover your costs. You’d know when you were going, how long you could stay and at least generally what you would do while there.
But when it comes to the longest vacation most people will ever take – retirement – fewer than half of all Americans have a formal plan.
And that can spell trouble.
“There’s nothing worse than being 85 years old, full of life, and being flat broke,” says Randy Becker, a retirement planner and co-founder of the Becker Retirement Group in Bellevue, Washington.
But it takes some work to avoid the many pitfalls that can ruin your golden years, Becker says. Inflation, taxes, bad health and bad investments can be devastating.
“It’s up to you to have a sound plan, so you can focus on the important aspects of a wonderful retirement life,” he says.
Becker offers these tips for getting started so you’ll know you’re ready to begin your retirement journey:
Get everybody on board.
You and your spouse need to agree on your retirement goals – and the financial decisions that will get you there. Start talking about priorities: Do you want to relocate? Stay close to the grandkids? Are you emotionally and physically ready for retirement? How long will each of you keep working, and how will that affect the income streams you’ll rely on when those paychecks stop?
Make a budget
Most people think their expenses will go down after they retire, but usually that doesn’t happen. Your wardrobe budget might go down when you aren’t working, but other expenses might go up if you travel, enjoy new hobbies, or start going out more for dinner, movies and concerts.
Know where your money will come from.
Most financial professionals agree that income is king when it comes to retirement planning. A pile of scattered paperwork and account statements is not a plan. A good advisor can help you maximize your Social Security benefits, come up with tax-efficient distribution strategy and talk to you about other options, such as annuities, that can guarantee income in retirement. This is vital as people now live 20, 30 or even 40 years after retiring.
Know your retirement timeline and reevaluate your risk tolerance.
One of the biggest mistakes investors nearing retirement make is sticking with the same advisor and portfolio they had when they were younger. You’ll need to move to a more diversified approach, with fewer risks and more protection for that all-important income.
Although he’s a financial professional, Becker says retirement is about more than money. There’s also the adjustment retirees must make from working every day to suddenly having too much time on their hands.
“Perpetual Saturdays are exciting for about a week,” Becker says. “Maybe you’ll find ways to volunteer. Maybe you’ll learn to paint or play guitar. Maybe you’ll end up working part-time. But most people discover that they need something in retirement that will keep them engaged and excited about life.”
Randy Becker is a retirement planning professional and owner of the Becker Retirement Group in Bellevue, Washington (www.beckerretirement.com). He has 30 years of experience in the insurance industry and holds a degree in personal financial planning from Metropolitan State College of Denver. Randy is co-host with his wife and business partner, Arwen Becker, on Real Retirement Radio which airs on Newstalk AM 870 on Saturdays at 8 a.m. and Sundays at 6 a.m. Real Retirement Radio is a one-hour show dedicated to all things retirement.
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When planning your Financial Future, also known as Retirement, make sure to diversity your savings and investments. Diversification (having different types) of savings and investments is crucial to ensure that you do not out live your income after you retire, decide to stop working or become unable to work. From IRAs, 401ks, 403bs to cash value life insurance policies and stocks; there are several ways to build wealth for your future.
An Annuity is also a way to diversify financial future savings as well. Annuity comes the Latin work “annus” meaning annually or yearly. An Annuity is an insurance product that insures an income payout and is usually used as part of a retirement planning strategy. Although “Annuities are a popular choice for investors who want to receive a steady income stream in retirement,” it can compliment any person’s financial future and retirement savings based on their desired outcome and strategy.
For a better understand of Annuities, check out my interview with Prince Dykes on his YouTube show “The Investors Channel.”
Just like with any other financial vehicle, there are pros and cons. One size does not fit all when it comes to financial planning. Therefore, it is always best to consult with a financial professional, insurance agent or financial advisor to determine the best strategy for your situation.
Click here for more cool videos about Annuities, then feel free to connect with me for chat about how or if an Annuity may work for your financial future savings strategy.
