Where can I start a search for a good personal financial advisor? Someone who can help with taxes, finances?

Question

I am looking for someone who can give me all around advice on taxes, retirement, investing...who can take a look at my money, bills and help me move from there...Middle class, late 30's need help! Indianapolis, Indiana

Answer 1

The first place to always look is with either your bank or your insurance company. Both will usually have a financial advisor within the company that can work with you one-on-one, and since you already use them, most likely the services will be free.

Answer 2

Check your yellow pages for "investment advisor", "Financial Advisor", etc. You want to use a "Fee for service" or "for fee" advisor, not someone who will do it for free.

The reason is that the person who does it "for free" will still get paid by you. But the money comes from a commission they get on the investments you make. And they will tend to steer you towards investments that pay the best commission, not always towards those that will make the most money for you.

The "fee for service" guy will look at your situation, and make recommendations that suit you, not him. This will probably cost you a few hundred dollars, but in the long run, it's probably better for you.

Answer 3

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement. The financial planning process consists of six steps that help you take a COMPREHENSIVE "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of a whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes (marriage, children, death, taxes, retirement, estate planning) and feel more secure that your goals are on track.

There are many type of "financial advisors" available for the public. However, like doctors, attorneys and CPAs, financial advisors are not created equally. One of the better nationally accreditted financial advisors is known as a CFP aka Certified Financial Planner. (see links)

Why should you speak with a CFP instead of a "financial planner" at Schwab, Goldman Sachs, eTrade, or the local bank? First the big name institutions usually won't make time with you unless you possess well over 25k, 100k, 250k or 500k. Even if they do meet with you they rarely take the time to create a comprehensive finanial assessment for your unique situation/needs. But most importantly is the fact many are quite bias and have conflicts of interest in how they are paid and most advisors are not CFPs. See this article: http://articles.moneycentral.msn.com/RetirementandWills/CreateaPlan/8ThingsYourFinancialPlannerWontTellYou.aspx

A good financial advisor will possess three things:
- a strong list of client referrals whom you should check (make sure to interview the CFP as you would a job candidate)
- no conflict of interest in how they are paid versus fulfilling the clients financial needs (i.e. if someone is paid w/commissions, they it is a red flag if they churn your investment accounts, or likewise advises you to buy insurance that is the most expensive)
- a CFP which demonstrates they're committed to competent and ethical behavior when providing financial planning. Individuals certified by CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® certification process that includes demanding education, examination, experience and ethical requirements.

Financial advisors are all around you, but few possess high ethical standards AND possess a comphrensive financial background AND possess the necessary work experience to objectively help you. Yes you can use the do it yourself financial planning books, but remember none of them are specific for your needs. Also, CFPs dedicate their time when most people are working for a living to provide professional opinions developed just for you. Your needs are grossly different than the individual next to you and/or your coworkers. Read more at the links to educate yourself on the risks and benefits for using a CFP and not settling with just anyone who carries the title "financial advisor".