Me and My Financial Adviser

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December 20th, 2011

A third of adults say that running out of money is their top retirement concern

I am contemplating retirement. I have done my homework ten times over until I am satisfied that I can afford to retire. I have all my numbers on half a dozen spreadsheets so I went to the bank, with the spreadsheets, and asked to see the financial adviser. I would be totally hysterical if I retired only to find that I am still here living the life of Riley but my money has gone, spent or stolen and leaving me high and dry. I managed to rebuild my retirement nest egg after a couple of disastrous years on the stock exchange and I’d like to know that someone more or at least as capable as me will be looking after things when I retire.

Navigating between the scams

There are major investment scams out there. Sen. Charles Schumer, D-N.Y., has said that Bernie Madoff’s Ponzi scheme is an extreme example of the many scams lurking out there that can trap unsuspecting investors. The Securities and Exchange Commission filed a record 735 enforcement actions in the 12 months ended Sept. 30.

Addressing the risk of outliving my money

I’m old, I grew up in different times and I don’t always understand what’s going on now. I find that many products today are very complex and some brokers can’t even explain them very well. "If you don’t understand how it makes money for you, what fees and commissions or costs you have to pay, then you shouldn’t be investing in that particular investment," says a financial adviser.

What I’m going to do

My first call will be at BrokerCheck. This will allow me to search for brokers and their firms that are currently or previously registered with FINRA to learn about their education, where they have worked previously and whether they have a history of disciplinary actions or complaints. I may also call the state securities regulator for more information.

Interviews and a list of questions

I will interview advisers and ask them all my questions. We will be talking about my money, all the money I have and the money I expect to last longer than me. I am not hesitant or shy about asking questions, even the stupid ones.

Questions

I will also ask the financial planner:

What experience do you have?
What are your qualifications?
What licenses do you have?
What products and services do you recommend?
Will you be the only person working with me?
How are you compensated? For example: Do you charge a flat hourly rate (or "à la carte" rate) for services? Is the fee a percentage of assets under management?
Do you receive a commission or a referral fee paid by the product or service providers that you sell?
What organizations are you and your firm regulated by?
Will you provide a written agreement that details the services and fees that will be provided?

This entry was posted on Tuesday, December 20th, 2011 at 11:09 am and is filed under Economy, Employment, Finance, Personal / Internet, Retirement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Me and My Financial Adviser

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