Fin-ology

Episode 16: Who’s Managing your Money?

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Recorded 2015-04-06

Do the goals of your financial advisor match yours? We discuss the importance of financial planners, how to make sure you make the right choice when choosing a financial planner, and what behind the scenes paychecks your planner may be cashing.

Show Notes

  • The difference in incentives for financial advisors and clients can be the cause of poor money management.
  • There are two types of payment options for advisors: commission and fee based
  • The hidden fees behind your “investment” options
  • Using life insurance as a savings policy is risky due to the high fees and low returns on your investment. Insurance should be treated like insurance and savings like savings; mixing the two can be financially dangerous
  • Check to ensure your financial planner has the background and education needed to actually manage your financial future.
  • Technology has drastically changed the way financial planners rebalance portfolios and provide reports on your portfolio’s performance.
  • Financial planner fees are in addition to the mutual fund management fees.
  • Look for second opinions and do your research when choosing an advisor
  • Never invest in any investment or with an investment advisor that you do not understand. Having comfort with where your money is or the strategy that is being used should be the main goal of your advisor.
  • If tax planning is a goal for you, then search for financial planners who either 1. Have a CPA or 2. Work in a firm with close connections to a CPA firm
  • Financial designations of note include CFP, Certified Financial Planner, and CFA, Chartered Financial Analyst
  • Your planner should spend the time to understand your risk tolerances, your present situation, your understanding of investments, and your future goals. This information should be used to create a tailored investment plan for your finances.
  • There should be no pressure to sign from your advisor, especially for long term goals including retirement.

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    Fin-ologyBy The Atapha Group