Monday, March 19, 2007 9:21 PM CDT
Ask questions before choosing financial professional
By PAT HILDEBRAND, Consumer/Family Economics Educator
UI Extension Office
areparing to retire takes planning. After all, when you think about accumulating enough assets to support yourself for 30 or more years, without working, it’s not surprising that it takes a good plan.
You may be able to do much of your retirement planning yourself.
However, whether you’re thirty-five years old and wondering if you’re on the right track or you’re fifty years and hoping to retire in the next 10 to 15 years, there may come a time when you’d like the advice of a financial professional.
Choosing a financial professional can be a scary idea. It’s hard to know who to trust with your hard-earned money and how to evaluate who will do a good job of giving you advice.
Unfortunately, government regulations do not protect the consumer very well in this area. Anyone can call themselves a financial adviser!
However, by knowing the questions to ask, you can successfully choose a financial professional.
Choose a financial professional who is qualified.
Interview financial professionals and ask many questions. Often financial professionals will not charge for your initial interview visit. By asking questions you can choose a financial professional who is a good match for you.
Qualifications that are important to consider include the person’s experience and education. The person you choose should have experience handling financial situations that are similar to yours.
Financial professionals often have credentials or designations, which may indicate that they have had special training related to finances.
Many kinds of credentials exist. Some are very good indicators of the person’s training and skill, and others may indicate more limited knowledge. If the person is a broker or investment adviser, verify that they have the required license or registration.
Does the financial professional you are considering hold at least one designation that is meaningful for the type of services you need?
For example, a CFP® or a PFS is a good credential if you need a financial plan.
If you need advice about investments, be sure to choose a financial professional who is qualified to provide advice on a wide variety of investment options. A person who gives advice about investments needs to be registered as an investment adviser.
A person’s initial training and education is important, but it’s also important that they have kept up with new changes.
When interviewing a financial professional, ask about continuing education. Do they regularly attend seminars or classes about financial practices?
Ask the financial professional if they have a fiduciary relationship with their clients. Someone who is a fiduciary is required by law to always act in your best interests.
Along with experience and education, you want to choose a financial professional with whom you are comfortable talking about your finances.
They need a good communication style. You do need to be able to trust this person.
Don’t hesitate to check their references and their licenses and registrations with the appropriate organizations. This way your trust will be well-founded.
In Illinois, to check a person’s licenses and disciplinary records you should call the Illinois Securities Department, toll-free 1-800-628-7937.
A qualified financial professional can help you with your retirement planning.
The University of Illinois Extension’s website, Plan Well, Retire Well: Your how-to guide is another helpful resource. Visit this website at http://coles.extension.uiuc.edu/.
Click on Money Management then “Plan Well, Retire Well--Your how-to Guide” and follow step by step directions to log-in. You can then explore many retirement topics and create a plan using the worksheets provided on line.
If you have any questions, please call the Coles County Extension Office at 345-7034.
Pat Hildebrand is an Extension educator, consumer/family economics, for University of Illinois Extension.
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