When it comes to your financial future, here’s the deal: You’re on your own. Pensions are going the way of the parachute pants (remember the 80’s). Social Security is looking more shaky by the day. Our healthcare system is being held together by duct tape. In today’s environment, you must be a realist and admit that you’re going to have to take control and create your family’s financial security (with the help of a few financial friends). You can read about the the first two financial friends here and here.
Over the past two days we have explored a few essential financial friends we all will need at some point in our lives. If you desire to build wealth, today I’m encouraging you to consider adding a third financial friend:
A FEE BASED FINANCIAL PLANNER
Making financial decisions is difficult. Make the wrong decision could prove disastrous and may set you back a few years. There’s a lot you can figure out on your own, but all of us can use help when it comes to something as important as how to save, invest, and plan for the future.
Get References
A reference from a friend or family member is a great way to search for a financial planner. But make sure you’ve got similar needs as the person who’s giving the referral. Go to groups like the Certified Financial Planner Board of Standards and the Financial Planning Association for additional references.
Understand how your planner is getting paid
The three most common set-ups are: Fee-only, fee-based, and commission-based. Fee-only planners don’t get commissions for the products they sell – fees are for the advice they give (my personal preference). Fee-based planners may receive commission on some products they sell, but most of their money comes from a fee you pay them. Commission-based planners are paid by the companies whose products they sell.
Remember, you are the CEO of YOU!
