Study Identifies The Worst U.S. States To Retire In
==========
Personal finance is a topic not discussed that often. Financial health is as important to our health as food is. Hence I am adding this information on this blog. Financial ruin can be disastrous to our health.
Some people never get to manage their money well. They end up feeding the banks with unbelievable high interests, that they would never be able to recover.
I did some research and found this great article at Investopedia, how to get a financial planner to manage your debt.
https://arrestyourdebt.com/money-calculators/ Monthly Budget Calculator
50/30/20 Budget Calculator
New Mortgage Calculator
Mortgage Payoff Calculator
Compound Interest Calculator
Retirement Calculator
Credit Card Payoff Calculator
Most Popular Posts:
Here are major important points from the article:
...The client should bring all relevant documents to the meeting to ensure that your advisor gets the full picture. This includes bank statements, credit card bills, installment loan statements, pay stubs, tax returns for the past few years, and anything else that may have an impact on your financial situation...."
"... The client should leave the meeting with a written plan that explicitly spells out the recommended course of action. Ideally, the financial advisor should provide milestones to check off and red flags to watch out for so that the client can check their progress and catch any potential missteps early..."
"...Your financial advisor should also be a fiduciary. That means they are obligated to act in your best interest at every turn. A person can be a financial professional and know everything about money, but if they aren't a fiduciary, you'll have fewer protections on the advice you're getting..."
"...How Advisors Are Paid
With the immediate focus being debt management, a financial advisor's pay structure should usually be an hourly rate. Commission-based advisors depend on selling insurance policies, investments, and the like, which creates an obvious conflict of interest...."
How to Find a Good Advisor
The decision to hire a financial advisor isn't one to take lightly. Make sure that the person is indeed certified to give financial advice. The best bet is looking for a Certified Financial Planner (CFP). A Chartered Financial Consultant (ChFC) has less education, but they are also well-versed in personal finance and insurance.
Finding an advisor who has an active membership in the National Association of Personal Financial Advisors (NAPFA) is a good practice as well. It indicates that they are a fee-only advisor, meaning that there are no kickbacks of any sort that could bias their advice....
Finding a Financial Advisor or Planner
7 Steps To Evaluate A Financial Advisor
- Look for professional certifications and designations after an advisor's name, such as CFA, CFP, or CIMA.
- Determine the fee structure you're most comfortable with: fee-only, commission-based, or based on assets managed.
- Ask for referrals and then run a background check on the advisors that you narrow down such as from FINRA's free BrokerCheck service.
- That CPA may or may not also be a financial advisor.
Say you're looking for help in creating a savings plan, devising investment strategies for your investment portfolio, getting out of debt, and start saving for a house. In short, if you want someone to look at your entire situation, you should seek the help of a comprehensive financial planning firm or an individual financial planner.
Firms typically have a staff of professionals that includes a financial planner. Solo-practitioner planners may not be able to provide you with the full range of services that a firm can, but many will work hand-in-hand with other professionals who can provide those services.
Financial advisors handle a wide range of money matters for individuals and businesses while a financial planner handles more specialized matters.
Choosing the Right Financial Planner
You should interview at least three financial planners before choosing the one you decide is right for you. Be sure to get answers to the following questions:
- What are your credentials?
- Can you provide references?
- What do you charge?
- What is your area of expertise?
- Will you act as my fiduciary?
- What services can I expect?
- How will we settle disputes?
To check the status of a CFP® and for a guide on choosing the right adviser to work with, visit the CFP Board of Standards website.
Commission Based
Although most of the big retail brokerages offer financial planning services, be cautious with their personnel. While many are highly trained and can be trusted, others may just be glorified stockbrokers hired by large wirehouses to sell proprietary mutual funds and stocks. Known as fee-based, they are incentivized, sometimes even required, to push these products, which are owned by their firm—and for which they receive top commissions. And with some wirehouses, it's all about quantity, not quality. The more buying and selling that a broker does in an investor's account, the higher his commission payouts.
Fee-Only
Another type of advisor is the fee-only advisor. These professionals carry designations such as registered investment advisor (RIA) or investment advisor representative (IAR). They are held to a high degree of accountability, and you'll typically find them knowledgeable.
CALCULATORS
How much retirement income will you need? How much life insurance is enough? What type of IRA is right for you?
Our financial calculators are designed as educational tools to help you estimate answers to common financial questions. They are not intended to predict future returns or results. Simply click on one of the general financial topics below and you'll find a selection of easy-to-use calculators about related financial topics.
These calculators are hypothetical examples used for illustrative purposes and do not represent the performance of any specific investment or product. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk of loss. Actual results will vary.
Comments