First Financial Coach

By Lauren Sigman, Certified Financial Planner™ Located in Denver, Colorado

Divorce creates a huge emotional upheaval for both parties. Addressing financial concerns of a divorce in a calm and objective manner will benefit everyone in the long-term.

Here are five of the most frequent divorce financial mistakes and how to avoid them.

. The spouse who will have custody of the children typically wants to keep the family home. While this may be desirable emotionally, it can be financially problematic.
A home is an illiquid asset that costs money to pay for and maintain. Consequently, it may be better financially to sell the home and split the proceeds.

. Frequently, the wife takes the house and the husband keeps his pension or retirement accounts. Say both are valued at 0,000. The home is a cost-burden, while the retirement account is a liquid asset that can continue to grow, tax deferred, and probably at a faster growth rate than the home.

. Often, one spouse has minimized a career in order to raise children. The settlement needs to take this into account, perhaps by providing extra money to the homemaking spouse to pay for additional career training or education.

. Say it’s proposed that one spouse keeps a 0,000 IRA and the other keeps a 0,000 taxable investment account. Sounds fair. But it’s not. The owner of the IRA will have to pay taxes on that money when it’s withdrawn, so the two accounts are not truly equal in value.

. Hire a Certified Financial Planner™ professional trained in divorce financial issues to work alongside your attorney and CPA. A Certified Financial Planner™ can objectively examine long-range issues such as budgeting, appreciation, and tax ramifications of the proposed settlement assets; as well as the long-term costs associated with settlement proposals. A financial planner, working alongside your attorney and CPA, can help ensure the divorce settlement is financially fair to you.

  is a mark of excellence granted to individuals who meet the stringent standards of education, examination, experience and ethics. It is the most prestigious and internationally accepted Financial Planning qualification recognized and respected by the global financial community. The CFP Certification wins trust and presents opportunities worldwide. In this era of super specialization, the Professional Certification – Certified Financial Planner (CFP) Certification, gears career aspirants and existing financial intermediaries for giving comprehensive financial advisory services to individuals and make a satisfying career in the financial services industry.

 is the principal licensing body that awards CFP Certification in India through an agreement with FPSB, US. CFP Certification is the highest level of Certification worldwide in the field of Financial Planning with largest CFP Certificants and widely respected by consumers, professionals & industry. Education is an integral component of the CFP Certification Program and any candidate aspiring to become CFP Certificant has to register himself with any of the FPSB India’s Authorized Education Providers. However, certain candidates having specified qualifications and work experience have an option of applying through Challenge Status pathway wherein they can challenge the CFP Certification Education Programme.

 CFP Certification worldwide is awarded by FPSB Affiliates to competent & qualifying candidates fulfilling the 4 E Criteria of CFP Certification i.e.

: A candidate must complete academic coverage of the Financial Planning curriculum by undergoing the 6 Module CFP Certification Education Program through an Authorized Education Provider and pass corresponding Exam 1-4 facilitated by NSE.However candidates applying through the Challenge Status Pathway are exempted from the Education Program considering their higher qualifications & work experience. Education criteria demonstrate to the public that the candidate has acquired the necessary knowledge to become a Financial Planner.

: The CFP Certification Examination (also called Exam 5 based on Module VI-Advanced Financial Planning) is designed to assess the candidate’s ability to apply Financial Planning knowledge to real-life Financial Planning situations. By passing the CFP Certification Examination, the candidate demonstrates to the public that he/she has the required level of competency to practice Financial Planning

The experience requirement qualifies work experience that involves Personal Financial Planning. Candidates under the Regular Pathway may complete the experience criteria pre or post appearing Exam 5. However candidates under Challenge Status pathway need to have attained relevant experience before appearing Exam 5. The Experience criterion is designed to provide the public with the assurance that the candidate understands the counseling nature of personal Financial Planning.

To get the CFP Certification, candidates after meeting Education, Examination & Experience criteria must agree to abide by FPSB India’s Code of Ethics, Rules of Professional Conduct, Practice Standards & Disciplinary Rules & Procedures. Careful adherence to these standards of professional conduct helps turn initial consultations into trusted, long term consulting relationships with clients and gain public confidence in the Profession.

Once Certified, CFP Certificant must fulfill the Continuing Education (CE) requirement to stay current on Financial Planning strategies, products and trends affecting their clients. CE plays a vital role in the CFP Certificants pursuit of ongoing professional competence. This demonstrates to the public that the candidate has kept himself /herself abreast of developments in the Financial Planning field.

A candidate fulfilling the rigorous initial & ongoing CFP Certification criteria and after paying the Annual CFP Certification Fees is authorized by FPSB India to use CFP, CERTIFIED FINANCIAL PLANNER & CFP flame logo collectively known as CFP Marks in his/her publishing material and communications. To maintain the legitimacy of use of CFP Marks FPSB India publishes the list of CFP Certificants on its Website Directory. Consumers are advised to cross-check the authenticity of the Financial Planner claiming to be a CFP Certificant by referring to FPSB India website directory.

Enhanced career and employment opportunities with Financial Services companies. Your Services are sought by banks, distribution houses, AMC, insurance Companies, equity broking and Financial Planning firms.

Personal satisfaction of achieving the Financial Planning profession’s highest standard and met the global benchmark

Satisfied clients who appreciate the comprehensive approach to Financial Planning and extend long term relationship and referrals

Your expertise and credibility as a qualified professional is instantly communicated.

More revenue streams by increasing your product and service offering to your clients.

Enhanced Social Status by joining the league of professionals.

Recognition in large no. of countries across the world.

Your credentials demonstrate trust among the financial consumers.

You have met the global benchmark for competency, ethics & professional practice standards to provide comprehensive Financial Planning services.

You join the global league of the best Financial Planning professionals.

So, become a Certified Financial Advisor now & start advising people about insurance and investing matters & also help them with everyday spending habits and short-term savings goals.



Questions you should ask a financial advisor when deciding with whom you are going to work.

It is important to know how often your financial advisor expects to meet with you. As your personal situation changes you want to ensure that they are willing to meet frequently enough to be able to update your investment portfolio in response to those changes. Advisors will meet with their clients at varying frequencies. If you are planning to meet with your advisor once a year and something were to come up that you thought was important to discuss with them; would they make themselves available to meet with you? You want your advisor to always be working with current information and have full knowledge of your situation at any given time. If your situation does change then it is important to communicate this with your financial advisor.

It is important that you are comfortable with the information that your advisor will provide to you, and that it is furnished in a comprehensive and usable manner. They may not have a sample available, but they would be able to access one that they had fashioned previously for a client, and be able to share it with you by removing all of the client specific information prior to you viewing it. This will help you to understand how they work to help their clients to reach their goals. It will also allow you to see how they track and measure their results, and determine if those results are in line with clients’ goals. Also, if they can demonstrate how they help with the planning process, it will let you know that they actually do financial “planning”, and not just investing.

There are only a few different ways for advisors to be compensated. The first and most common method is for an advisor to receive a commission in return for their services. A second, newer form of compensation has advisors being paid a fee on a percentage of the client’s total assets under management. This fee is charged to the client on an annual basis and is usually somewhere between 1% and 2.5%. This is also more common on some of the stock portfolios that are discretionarily managed. Some advisors believe that this will become the standard for compensation in the future. Most financial institutions offer the same amount of compensation, but there are cases in which some companies will compensate more than others, introducing a possible conflict of interest. It is important to understand how your financial advisor is compensated, so that you will be aware of any suggestions that they make, which may be in their best interests instead of your own. It is also very important for them to know how to speak freely with you about how they are being compensated. The third method of compensation is for an advisor to be paid up front on the investment purchases. This is typically calculated on a percentage basis as well, but is usually a higher percentage, approximately 3% to 5% as a onetime fee. The final method of compensation is a mix of any of the above. Depending on the advisor they may be transitioning between different structures or they may alter the structures depending on your situation. If you have some shorter term money that is being invested, then the commission from the fund company on that purchase will not be the best way to invest that money. They may choose to invest it with the front end fee to prevent a higher cost to you. In any case, you will want to be aware, before entering into this relationship, if and how, any of the above methods will translate into costs for you. For example, will there be a cost for transferring your assets from another advisor? Most advisors will cover the costs incurred during the transfer.

The certified financial planner (CFP) designation is well recognized across Canada. It affirms that your financial planner has taken the complex course on financial planning. More importantly, it ensures that they have been able to demonstrate through success on a test, encompassing a variety of areas, that they understand financial planning, and can apply this knowledge to many different applications. These areas include many aspects of investing, retirement planning, insurance and tax. It shows that your advisor has a broader and higher level of understanding than the average financial advisor.

A Certified Financial Planner (CFP) should spend the time to look at your whole situation and help with planning for the future, and for achieving your financial goals.

A Certified Financial Analyst (CFA) typically has more focus on stock picking. They are usually more focused on selecting the investments that go into your portfolio and looking at the analytical side of those investments. They are a better fit if you are looking for someone to recommend certain stocks that they feel are hot. A CFA will usually have less frequent meetings and be more likely to pick up the phone and make a call to recommend purchasing or selling a specific stock.

A Certified Life Underwriter (CLU) has more insurance knowledge and will usually provide more insurance solutions to help you in reaching your goals. They are very good at providing techniques to preserve an estate and passing assets on to beneficiaries. A CLU will generally meet with their clients once a year to review their insurance picture. They will be less involved with investment planning.

All of these designations are well recognized across Canada and each one brings a unique focus on your situation. Your financial needs and the type of relationship you wish to have with your advisor, will help you to determine the necessary credentials for your advisor.

Ask your prospective advisor why they have done their extra courses and how that pertains to your personal situation. If an advisor has taken a course with a financial focus, that also deals with seniors, you should ask why they have taken this course. What benefits did they achieve? It is fairly easy to take a number of courses and get several new designations. But it is really interesting when you ask the advisor why they took a certain course, and how they perceive that it will add to the services offered to their clients.

In future meetings will you be meeting with the financial advisor, or with their assistant? It is your personal preference whether or not you wish to meet with someone other than the financial advisor. But, if you want that personal attention and expertise, and you want to work with only one individual, then it is good to know who that person will be, today and in the future.

Are your financial needs similar to many of their clients? What can they show you that indicates a specialization in your area and that they have other clients in your situation? Has the advisor created any marketing pieces that are client friendly for those clients in your situation, over and above what they offer other clients? Do they really understand your situation? Once you have explained your personal needs and the type of client you are, it should be easy to determine if you are an ideal client for the services they provide.

It is important to know how many clients your prospective advisor works with. Are you one of 100 clients or one of 1000? Based on your assets are you in the top 15%, or the bottom 15% of their clients? These are important things to know. Ask if you are one of their top clients or one of their bottom clients, if will you receive more attention or less attention?

It is valuable for an advisor to have a strong network of professional individuals available to their clients, in which they have full trust. Your advisor should know and trust these individuals completely, so that if an issue arises with them, your advisor will be able to go to bat for you.

Are there any clients that have given testimonials and who would be willing to speak to you about the advisor and the services provided? Ask these individuals how they enjoy working with the advisor and their staff. Ask some of the questions that you have asked the advisor, such as, Who do they meet with when they have their meetings, the advisor or an assistant?

Whether or not this is important to you, it is a good question to ask. You will discover if the advisor has given back to the community and if they are doing things over and above the day-to-day job to give back and help others.

This may be a question that you want to ask the advisor in a second meeting, if you have a two meeting process. Ask: How can they bring value to the relationship? What do they feel they can help you with? What will they do to ensure that you achieve your goals?

I have touched on this earlier as well. This is really where you can see if a financial advisor is pro-active and if they specialize in a specific area or a specific type of client. An advisor who is pro-active should be creating some tools or have some processes in place to support their clients in their target market. Some of the tools will be used behind the scenes, but should be able to be explained to you, and provided to you during your relationship, to help you achieve your goals and keep you on track.

It is a great idea to go to the advisor’s office to meet with them initially if you are able to do so. This will allow you to see their office and their working environment; and, it will give you a sense of what type of an advisor they are, and the clients, with which they work. In the same respect, if you do not live close to their office, you should question if they are willing to come to meet with you at your home. If not, you will want to understand why they want to meet only in their office. Likely, they believe that they can provide the best possible service where all of their paperwork and resources are readily available, despite which questions might arise. They may prefer to come to your home once to see your environs and to get a better understanding and feel for the type of client you are. But, if you are unable to get out to meet with them, or if your situation in this regard changes in the future, you will want to know how this will be managed.

If you are looking for somebody who is going to look at your overall situation, and who is going to spend the time to help you plan how to meet your goals, you will want an advisor who is proficient at financial planning. If you are looking for a broker whom you simply want to be able to phone to have them place a trade for you, then you will not need financial planning. Understanding whether financial planning is provided is a key component. Be very careful that you are actually getting financial planning when you ask an advisor if they do financial planning. Also, you must understand whether or not there are any fees associated with the planning service. Some advisors may charge an additional fee for the planning on top of everything else that they do, while others will provide you with an actual financial plan at no additional cost.

It is important to know if the prospective advisor has a particular focus. Are they proficient with investments, insurance, financial planning, retirement planning, taxes, and estates? Will this one person be able to take over all of these areas for you? Will you be able to establish a relationship with one solid individual who understands all aspects of your financial situation? Or will they only help you with your investments and have someone else do your taxes, your insurance, your estate planning and retirement planning? Will you need to go out and find the others who do that? It is important to understand if the advisor can look at the whole picture or only one or two areas. You will be able to achieve your goals more quickly if an advisor can service your entire financial portfolio, because each of those areas mentioned, needs to understand and complement the others, while not undermining them, which may occur if various individuals are working on different aspects of your financial plan.

Is it convenient to meet with the advisor? Are they able to meet with you at a time of your liking, or did you have to go out of your way to set up the initial meeting? Are you comfortable with them and their staff? Do you get a good feeling from what they do and what they say to you? Do you sense that they have your best interests in mind? Is their office setting efficient and comfortable?

Interview a number of different advisors before you make a change. This will help you to understand what each one does differently, and it will give you a good idea as to how they will help you to determine exactly what your goals might be. You might even come to realize that your present situation is the best for you at the moment. Talking to several potential advisors will help you to develop a path toward the achievement of the goals that are most important to you, and help you to understand who is best to partner with, in order to achieve those valued goals.

www.createwealthnow.ca

here are a lot of options in financial planning institutes to peruse the financial planner career. Financial planning deals with the management of finances of various clients like individuals and companies. Financial planners help these clients to make the smart choice for advantageous investments. For this they have to do a great deal of analysis and research. They also need to have a good communicative base and should understand investments and taxes thoroughly. Financial planning has a lot of branches- these include financial consultants or advisors, analysts and they might be even self-employed or company employed.

You need to have a degree from a good college, and you need to have the interpersonal skills to back up what you’ve learned and what you’re selling to others. Generally a Bachelors degree is required for employment  and some companies require you to have additional schooling or additional training, depending on which specific financial niche you’ll be working in. Some are more complex than others, and with that being the case you’ll have to decide early on exactly what career path you’re planning on taking so that you can get all of the education that you require. Don’t just get your Bachelors degree and then assume that you can get any kind of financial sector job, because that may not be the case. Specializing in something is a much better choice.

NIPS – New Era Institute of Professional Studies Delhi offers an Industry integrated curriculum, directed to make the student productive on job from Day 1. CFP Course certification is globally recognized and respected . The CFP Certification wins trust and present opportunities worldwide. There are more than 1,00,000 certificants practicing in 20 countries worldwide. The students who graduate from the NIPS – New Era Institute of Professional Studies Delhi, can look forward to multiple career opportunities across the financial sector and allied industries in business and management consulting, KPOs among many others. Student get access to a world class, industry relevant curriculum which is updated every 6 months, where knowledge is imparted via a world class teaching methodology.

Doing that shows that you are focused on something that you’ll enjoy and that you can use to help many other people improve the quality of their lives through savings and investing. Financial planning can be done, even when times are tough, so being one of the people who can help is generally a great choice for many people. There is always a demand for people who are interested in a financial Career because people always need management of their money. They can’t always get it on their own through sources like the Internet because they don’t know exactly what they’re looking for and how to find it. Instead, they turn to trained professionals who have been through schooling. A lot of the best schools to study at will be involved in financial recruitment, too. In other words, they will go out of their way to advertise their financial schooling and try to bring people into that career path. Look for these types of schools and research with one is best for you if you want to train to work in financial services as your chosen career path. A CF Planner would be a good advantageous tool for all TEDDies, once the moolah kitty grows to a significant amount. It would provide cashflow for maintaining expenses for a numbe of years(from some off the $ $ $ kitty) and the rest of the money one can invest as they do now, thus investing would be more tension-free and thus more objective.

Careful planning of your finances is the first rule of success. In Naperville financial planning can be handled in numerous ways. Is the very thought of financial planning making you pull your hair out? Do you need more information besides the basics of investing to plan a better fiscal future for you and your family? If you are in the market to learn how to make your money work for you then choosing a financial planner is your first step. This article will help you choose the right financial planner for you.

When searching for a financial planner in Naperville you should take some basic things into consideration. Have a clear understanding of what your financial goals are. Are you thinking of setting aside a sizeable amount toward your retirement? Do you want to finally get that vacation home you have been fantasizing about? Whatever you reason, financial planning with clear objectives will go a long way to bringing you closer to your dreams.

Determining the type of financial planning strategy you will choose doesn’t have to be a daunting task. You should start with how involved you want to be in the planning process. A larger financial planning company may have access to more resources such as analysts and research tools to give them an advantage. On the other hand, a smaller investment firm will be able to provide you with the personalized service and attention to detail that only a local business can offer.

In the process of doling out financial advice, planners can share their years of experience and knowledge of the markets they work in. In Naperville you can find several financial advisors who can explain all options open to you when planning your finances. If you want your financial stability to be handled by someone with your best interest in mind, you should choose someone who understands the socio-economic climate where you live. Who better than someone local, someone who is a neighbor?

Selecting someone to help you with your financial planning is the first step. Once you’ve made your selection you can start diving into your goals and start to investigate your options. You financial planner will have many different financial products to implement. Each one of these products work together to create the outcome you want. Consider and weight the information being shared with you. The process of financial planning is concise, the more thorough and clear you can be about what you want and where you are fiscally at that moment will be of great benefit to you.

Your financial planner will pour through your financial history and look for common issues in you spending habits. They will make suggestions on how you can improve and what actions you can take to make a more stable foundation for your money. It may be hard to hear someone dredge up all of your fiscal skeletons, understand that this is done constructively. Your financial planner is on your side, it is there job to find the weak spots in your budgeting and fix them.

Searching for the right financial advisor can be quite a time consuming and an onerous task but it is really worth spending the time at the outset to find the best financial advisor for you. In general, people just don’t have the time to sit at their computer and plan for the future all day, so this job is sometimes better left to be handled by someone else who is an expert in the field. They will generally be highly qualified, experienced and will spend their days keeping up to date, for example, with the latest views on investment management and the most recent legislation made by the government – which, in turn, could affect your tax planning, pension and other aspects about planning for your financial future.

When searching for the right person to help with your finances, a great place to start is to start by asking for recommendations from friends and family. Asking a friend or family member who plans their finances could be a great way to meet a quality individual to help you with your independent financial planning. A work colleague or relative may already know a great chartered financial planner – and perhaps might have had many years of being advised about their investment management and long term financial plans by a specialist. Ask them about the strengths and weaknesses of their recommendation. Are they specialists in the full range of services that you need? The home counties have some great advisors that can be used for their services, so there might be no need to look for a top advisor in a nearby, big city.

After getting some referrals from friends or family, it’s time to put a shortlist of candidates together for research purposes. For your choice in financial advisor to be a positive one, all the objectives and capabilities of both parties need to be laid out and explained up front. It is always a shame when a working relationship looks like it is going to work out and then some misunderstanding happens a few months down the road. All disagreements should be taken care of right away so no one’s time is wasted and everyone can be working towards a productive relationship. During the interview period, it is also important to be clear about your personal objectives, which will then be incorporated into your financial plans. Do talk to your financial planner about your short term and long term goals. A good advisor will then discuss in what areas they can help you. Although someone else is being hired to help you with your financial planning, your input should still be factored into the equation. The first meeting will also be beneficial to the planner because they will be able to see if they are a suitable fit for the job.

There are a lot of different questions that can be asked during the research process, and many of them will be beneficial to both the and the person seeking advice, not just one of the two parties. If you are asking the questions, you should first about the general background and credentials of the prospective financial planner. Such as do they provide independent financial planning, their qualifications, their fee structure and are they a chartered financial planner? will be able to offer you some great options to choose from, but it may not be a bad idea to check out the financial specialists in other local areas. Location is key for some people, so if you like to be close to the people you work with, you will need to factor that into your decision making process. After reviewing the qualities and abilities of the financial planner, the last thing to talk about is cost and fees. Try and get an estimate from each planner so that you are clear upfront about what the charges will be. Compare them and ensure that you are getting good value and the cost of your investments is not going to be excessive. As long as the research is done beforehand and all of the prospective advisors are thoroughly checked out, it is likely that the right decision will end up being made.

If you’re looking for help with your financial planning decisions, there are a number of resources you can turn to:

- the internet / media

- friends and family

- your own knowledge

Ideally, it’s likely that you’ll want impartial formation upon which you can make objective decisions. Whilst these three resources can be utilised, they may not ‘do the job’ as you’ll be hard pressed to get an objective view with no emotion (which often runs high when making financial decisions) attached.

The alternative is to seek advice from a financial professional.

The advantage with this route is that, ideally, they will be able to take an objective stance. The problem with this route is that there are so many different types of financial adviser/planner to choose from.

How will you know if you are dealing with someone that is 100% impartial, or a slick salesperson who’s focus is to sell you what they have?

Let’s look at the options available to you and also the steps you can take to find the right type of adviser/planner (from the 45,000 or so registered individuals authorised to provide advice) for your circumstances. The first step is to determine what type of service you require.

Do you simply need someone to help you choose the right income protection plan, or do you need someone to help you create a ‘financial roadmap’ for the rest of your life, so that you’ll be able to see how your future will look until age 90/100?

The Financial Product Retailer

If you have an idea of the type of product you need, then this may be for you. The ‘service proposition’ from an adviser that offers this service will probably be to uncover exactly what you need and then to match the need with a financial product. It’s possible that the advice provided will focus only on the areas that you wish to discuss. For example, if you want some form of life assurance to cover a mortgage/debt, your retirement income requirements may not be discussed at all.

Whether you end up with the best product available on the market will probably depend upon the type of adviser that you are dealing with.

A Tied Adviser is one that only offers the products from ONE financial institution. They represent the institution, not you (this point is crucial).

A Multi-Tied Adviser offers the products from a few providers.

Obviously, as they have more choice to offer you this is a better option that dealing with a Tied Adviser. The downside is that you can never be certain that the product being recommended is the most suitable as they don’t have access to all the providers in the marketplace. Like the Tied Adviser, they represent the institution, not you.

An Independent Adviser (also referred to as whole of market) is able to choose from the majority of providers in the marketplace.

So if all you require is income protection, they’ll be able to select the plan that is most suitable for you.

You’ll notice that I say, ‘majority of providers’. This is because certain providers, such as banks, will not usually offer their products through whole of market advisers. Crucially, an Independent Adviser is the agent of the client, not any institution.

Paying for Advice

It’s important to understand that the majority of the financial services industry operates on commission. So, when you purchase a product the institution will make a payment to the advising firm (not normally to the individual adviser).

I believe there’s nothing inherently wrong with the commission system as such, especially when it can be used to help individuals purchase certain financial products. However, commission has been blamed for some of the past mis-selling scandals so one cannot ignore the scepticism.

After all, how can you guarantee that the product being recommended is the most suitable for YOU, and has not been selected based on how much commission is being paid to the adviser?

If you want to increase your chances of being recommended the right product, I believe you should only deal with an Independent, Whole of Market Adviser. Why would you take any chances by dealing with a Tied or Multi-Tied Adviser? It has nothing to do with how competent the adviser may be. It’s really about the range of products that they can choose from to help you purchase the most suitable one.

A good Independent Adviser should be open enough with you to show you the actual research that they’ve done so you can see why they are recommending certain providers.

Regarding commission, the majority of providers pay a similar amount of commission within each product category. Doubts have sometimes arisen where an adviser recommends one product category over another. For example, an investment bond may pay up to 8% commission on the original investment, whereas a unit trust would usually pay a maximum of 3% initial commission.

I believe the solution is very straightforward (and fair). When a client invests new money, the same commission should be charged regardless of product category. This should remove any question of bias.

Whichever type of adviser you deal with, don’t allow them to fool you that they are paid a salary and don’t earn their money via commission. If they do earn a salary, they will have sales targets to meet. In fact, I recently met with a friend that works for a bank and he told me that he had to sell enough products to validate his salary 7 fold! Not an environment I’d like to work in…

You should also ask the adviser whether you can pay for the arrangement of the financial product by paying them a fee.

If they agree to this, and subsequently don’t take a commission from the provider, you should benefit by:

- for investments, more of your money should be invested

- for protection, the monthly cost of the plan may reduce

Of course, it will make sense to calculate which route is the most cost effective. Now let’s look at the other type of service.

The Comprehensive Financial Planner

An adviser that offers this service will normally (but not always, so beware!) operate a financial planning process that is aimed at helping the client achieve their most important goals in life. The process may include:

- what goals are important to you that you want to achieve?

- what action are you taking to achieve these?

- are you on track?

- if yes, can you reduce the amount of risk you are taking?

- if yes, can you spend more money without affecting your current or future lifestyle?

- if no, can you invest more money/increase the amount of risk that you’re willing to take?

Their service proposition is NOT about retailing financial products, although they will usually help clients buy the right ones if required. Often, additional financial products are NOT needed.

I would suggest that you choose to work with someone who is willing to work WITH you to create your own Financial Plan.

You will have a great deal of involvement in creating your plan, so be prepared to engage in the process throughout.

So, how should you pay for such a service?

I am of the opinion that you should pay a fee. By doing so, the financial planner will be remunerated regardless of the outcome. As a consequence, they should have no vested interest in the solutions they devise for you. Of course, there’s no way of guaranteeing this, but I’m sure it will increase the chances of receiving a 100% impartial service.

How much you’ll pay will depend upon the adviser and their firm.

I’ve come across a whole range of figures and ways of charging.

Qualifications

There really is an ‘alphabet soup’ of qualifications that any type of adviser could possess. Let me cover the ones that I feel are the most important:

- the Certificate in Financial Planning, the basic qualification required to work as a regulated financial adviser

- the Diploma in Financial Planning develops advanced technical knowledge and understanding across a broad range of key advisory areas

- the Certified Financial Planner licence, an advanced qualification, being an internationally recognised certification awarded to individuals who have already proven their technical competency by passing appropriate examinations to the level of DipPFS (see point 2 above) or equivalent, but who then are tested specifically on their Financial Planning skills to become CFP professionals.

It’s important to be aware that the type of qualification the adviser has is separate to their service proposition and whether they are tied, multi-tied or whole of market. For example, it’s perfectly possible for a tied adviser to be qualified to Chartered Financial Planner level.

Action Point

The find an adviser here are some resources:

- ask a colleague/friend for a personal recommendation

- search online

- visit IFA Promotion’s ‘Find an Adviser’ online search tool at www.unbiased.co.uk

- search for a Certified Financial Planner at www.financialplanning.org.uk

Choosing a financial planning that is right for you can be very confusing and a little more difficult. Find a person or company that you can trust with your financial planning is important. Thus, learning where to start it takes some consideration.

Before starting the search for the planner some time to evaluate what your real situation, it is financially. There are several free online calculators that can help you start your current financial situation. This will help you get a better idea of what type of help you are looking for a consultant.

In addition, you will want to have what your goals are for the short, medium and long-term plans. This will help you determine exactly what type you looking for advice from a professional. There are several areas where a professional can help. For example, you may only want to help properly plan for retirement. On the other hand, you may be looking for help in all areas of your finances, you will be financially secure.

Now that you have to make some of the foundational work, you’ll want to dedicate time to research before hiring a consultant. There are several things you should consider to help you decide on the best match for you. First, make sure that the company or individual has the proper license, which is essential to your state and county.

Next, if you want to explore, experience shows that the planner has. Find out how long the person or company has been in business and what areas they are experienced in. Depending on the type of assistance you are looking for, you want to be sure they have plenty of experience in this field. Place a firm that is experienced in all areas can be helpful for you as your needs may change over time, and you will be able to stay with the same company.

As with any service you choose a lease, it is advisable that you ask to check the references of former and current clients, whether they were satisfied with the services provided by the company. You may even want to check with friends and relatives for their recommendations.

In addition to accessories, find out how the provider charges for services. For example, you want to know, is a provider of services for a fee or do they order from suppliers of financial products. Be sure that you are as easily planner charges you for services.

Find out who is related to the planner or control. Some are independent consultants or work in private companies, while others are associated with large financial institutions and banks. These large institutions may limit the products and services that can be offered to the customer. Because of these limitations, it is often better to seek financial planning, be self-employed or in private companies.

The majority of people do not have much experience managing substantial sums of money so when they receive an unexpected windfall, a lot of lottery winners need practical advice on how to manage their winnings. Lottery winners in the UK are able to seek initial support from a panel of legal experts and financial advisers provided by the National Lottery in order to help make important financial decisions. For lottery winners, the indispensable help from a financial adviser can mean the difference between living an independently wealthy life and going broke after a short period of time. 

It is all too easy to make huge mistakes that cost several thousand pounds. One typical example of these financial errors is purchasing a large home located in a desirable neighbourhood only for the lottery winner to later realise that they are unhappy with their home. This prompts the winner to put their property on the real estate market and pay the associated legal and estate agent fees and extra stamp duty. To prevent from going into financial ruin, financial advisers recommend that lottery winners allow a private bank to hold their winnings until they get independent tax, legal and financial advice. 

Financial advisers are adept at instructing those with limited money-management experience who have become overnight millionaires. Advisers allocate much of their working time to devising a smart financial strategy for their clients. The goal of their strategy is to make sure their clients are handling their windfall in the smartest way possible in order to reach short-term and long-term financial goals. 

Depending on their clients’ tolerance for losses and overall goals, a financial adviser will also contemplate the best place for their clients to put their money. For instance, the advisor may suggest that their client invest in bank accounts, bonds, property or the stock market. In addition, the advisor will take into account tax-efficient ways to invest while considering capital gains tax allowances, individual savings accounts, or ISAs, and other investment channels. 

And of course, the financial adviser will discuss with their clients about the costs for financial advice and portfolio management. Lottery winners must not forget that these services come at a price with charges and fees that can slowly accumulate. Because lottery winners quickly go from the excitement of winning a life-changing sum of money to the sometimes overwhelming task of figuring out how to manage that money, expert financial advice is absolutely necessary. As long as lottery winners follow the right advice, they can enjoy their winnings throughout their entire lives.

No matter the status of your finances, there will be times in your life when you need the assistance of a financial advisor. You may be planning changes, you may be approaching a new phase, or you may have unexpected occurrences that will leave you wondering what to do next with your money. It is important to consult a professional to ensure you are making the right decisions and so you will be prepared for the future. A financial professional can guide your choices and point out options you may not have known were available to you. If you work with an experienced professional, it can open doors and create a brighter future for your finances.

Things may be going along great in your life and when the right person comes along, you will want to get married and getting married means more than just a big, fancy wedding surrounded by family and friends. It brings changes in your finances, so you will want to make sure you plan accordingly. If you have concerns about how things will change, or you want to be sure you are prepared to combine assets and finances with another person, speaking with an experienced professional can help. Now that your household will have two incomes and one day, two retirements, it is important to know how to best plan. With two salaries, you may find you can afford more than you could before, and you will also have the ability to save faster than in previous years.

Following your marriage, a new member may join your family. If a baby is on the way, it is important to understand how to plan and budget for the change. Professional finance managers understand how a child is a lifelong commitment and they can help you determine how to allocate your funds in the best way possible. Everything changes once you become a parent, including your monetary situation.

One of the biggest examples of this is when your children start college. Unfortunately, the cost of higher education seems to increase with each passing year. If you want your child to have their choice of the best academic institutions, you will need to begin saving the moment they enter the world. An experienced finance planner can help you put together a savings plan that will open doors for your kids.

The final phase of your life where monetary planning is important if retirement. Again, to be truly comfortable during your retirement years, you will need to begin planning well in advance. The closer you get to retirement age, the more you will need to stock away to feel secure about giving up a regular income. It is important not to rely on government funds during your retirement. To spend the golden years of your life living comfortably and enjoying your lifetime of hard work, be sure you have saved enough over the course of your career. If you view government benefits as additional spending money, you will feel self-sufficient and be able to live a comfortable life.