Think your family needs help managing its money? Finding a financial planner you can trust may be your first step toward securing your future finances.
Do We Really Need a Financial Planner?
Aren't the services of financial planners reserved for clients with big bank accounts, lots of investments and trust funds for their children? Not always. Today, especially in uncertain economic times, even families with small balances should consider the pros and cons of turning to a financial planner.
If your family is like many, you may be tightening your belts these days, making every trip to the grocery store count. But with shrinking 401(k) accounts and less confidence in aggressive investment plans, what is happening to the money you have squirreled away for future use?
Starting the Search
Where to begin? The prospect of finding a financial advisor worth his salt can be daunting to the average family. To start, "Seek out the financially savvy people in your community and ask them who they use," Elder says. Local certified public accountants (CPAs) and estate planning attorneys are good sources of information.
Important Considerations
Once you have the names of a few good men or women, do your homework. "You should always interview at least three financial planners, just as you would get three bids for work done on your house," Elder says.
Reviewing Your Relationship
Even after you choose a financial planner who seems right for you, monitor the relationship periodically to be sure your planner continues to do his job to your satisfaction. If his performance is no longer up to par or you don't feel comfortable with his treatment of your money, don't hesitate to start your search again. Your financial stability is too important to allow a less-than-perfect relationship to continue.
