financial advisers http://www.wisebread.com/taxonomy/term/7380/all en-US 7 Things Financial Advisers Wish You Knew About Retirement http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-things-financial-advisers-wish-you-knew-about-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/men_tablet_work_579235928.jpg" alt="Men learning what financial advisers wish they knew about retirement" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Wish you had a crystal ball for retirement planning? Most of us do, and for good reason. Even if you're sure you'll have <a href="http://www.wisebread.com/how-much-money-will-you-need-to-retire?ref=internal">enough money to retire</a>, there are no guarantees until you get there. If your nest egg runs short, it will be far too late for a do-over.</p> <p>This is where a financial adviser can help. A financial adviser will know if you're heavy on risk, not diversified enough, failing to maximize tax advantages, or simply not saving enough. They will also make sure to take into account your lifestyle and preferences to ensure you're on the right path to your ideal retirement, and not just following a cookie cutter plan that's not going to be the right fit.</p> <p>We asked financial advisers for some of the most important ideas they wish their clients understood when it comes to money, retirement, and the future.</p> <h2>1. Social Security will be around in some form</h2> <p>]Andrew McFadden, a financial adviser for physicians, says many clients refuse to accept that Social Security will still be around when they retire. This is especially true if they are part of Gen X or Gen Y, he says, since they are decades away from receiving benefits.</p> <p>However short on funds we may be, the Social Security Administration projects the ability to pay around 75 percent of current benefits after the fund is depleted in 2034. This is a key detail, notes McFadden, since many people hear Social Security is going bankrupt and refuse to acknowledge any benefits in their own retirement planning.</p> <p>&quot;It's not all roses, but that's still a far cry from those bankruptcy rumors,&quot; says McFadden. &quot;So lower your expectations, but don't get rid of them altogether.&quot;</p> <h2>2. It's ok to &quot;live a little&quot; while you save for retirement</h2> <p>Russ Thornton, founder of Wealthcare for Women, says too many future retirees sacrifice living now for their &quot;pie in the sky&quot; dream of retirement. Unfortunately, tomorrow isn't promised, and many people never get to live out the dreams they plan all along.</p> <p>&quot;So many people assume they can't really live until they're retired and not working full-time,&quot; says Thornton. &quot;Nothing could be further from the truth. Find ways to experience aspects of your dream life now, whether you're in your 30s, 40s, or 50s.&quot;</p> <p>With a solid savings and retirement plan, you should be able to do both &mdash; save and invest adequately, and try some new experiences that make life adventurous and satisfying now.</p> <p>&quot;Don't accept the deferred life plan,&quot; he says. That future you dream about and plan for may never come.</p> <h2>3. The 4 percent rule isn't perfect for everybody</h2> <p>Born in the 90s, the 4 percent rule stated retirees could stretch their funds by withdrawing 4 percent per year. The catch was, a good portion of those investments had to remain in equities to make this work.</p> <p>The 4 percent rule lost traction between 2000 and 2010 when the market closed lower than where it started 10 years before, says Bellevue, WA financial adviser Josh Brein. As many retirement accounts suffered during this time, it was shown that the 4 percent rule doesn't always work for everybody.</p> <p>It doesn't mean the rule should be thrown out completely though, nor should it still be followed like gospel. In fact, in 2015, two-third of retirees following the 4 percent rule had double the amount of their starting principal after a 30-year stretch. These retirees could have benefited from taking out more than the limited 4 percent, which could have meant an extra vacation each year, or another luxury that they were indeed able to afford.</p> <p>There's absolutely no denying the importance of making your retirement dollars last. But, after a lifetime of working and saving, you also deserve to enjoy those dollars to their full capability.</p> <p>Bottom line, take time to re-evaluate your drawdown strategy every few years and make adjustments as necessary. While you don't want to go broke in retirement &mdash; you also don't want to miss out on all the incredible things this time in your life has to offer.</p> <h2>4. Retirement looks different for everyone</h2> <p>Minnesota financial adviser Jamie Pomeroy says he wishes people would abandon their preconceived notions on what retirement should look like. He blames the financial industry in part for perpetuating the idea that certain retirement planning accounts and products work for everyone. &quot;They don't,&quot; he says.</p> <p>&quot;Some enjoy retiring to the beach, some take mini-retirements before reaching a retirement age, some work part-time in retirement, and some just want to spend time with their grandkids,&quot; he says. &quot;The concept of retirement is dynamic, ever-changing, and defined very differently by lots of different people.&quot;</p> <p>To find the right retirement path and plan for your own life, you should sit down and decide what you really, truly want. Once you know what you want, you can craft a realistic plan to get there.</p> <h2>5. Investment returns aren't as important as you think</h2> <p>According to North Dakota financial adviser Benjamin Brandt, too many people focus too much energy on their investment returns &mdash; mostly because they are an immediate and tangible way to gauge the success or failure of our financial plans.</p> <p>Investment returns should only be judged in the proper scope of a long-term financial plan, and &quot;over decades,&quot; he says.</p> <p>In the meantime, our behavior can make a huge impact when it comes to reaching your retirement goals. By <a href="http://www.wisebread.com/4-quirky-ways-to-spend-less-and-kick-start-saving?ref=internal">spending less and saving more</a>, for example, we can avoid debt and potentially invest more money over the long haul. Those moves can help us retire earlier whether the market performs the way we hope or not.</p> <h2>6. Small changes add up</h2> <p>When it comes to retirement planning, many people feel overwhelmed right away. For example, some people may realize they need $1 million or more to retire and give up before they start.</p> <p>Financial adviser Jeff Rose of Good Financial Cents says this could change if everyone realized how small changes &mdash; and small amounts of savings &mdash; add up drastically over time.</p> <p>&quot;Someone who invests just $200 per month for 30 years and earns 7 percent would have more than $218,000 in the end,&quot; says Rose. &quot;Now imagine both spouses are saving, or that they boost their investments incrementally over the years.&quot;</p> <p>As Rose points out, a couple who invests $500 per month combined and earns 7 percent would have more than $566,000 after 30 years.</p> <p>Looking for ways to save money and invest more will obviously make this number surge. If you boost your contributions each time you get a raise, for example, you'll have considerably more for retirement. Remember even the smallest contributions can greatly add up over the years.</p> <h2>7. Don't forget about long-term care</h2> <p>Joseph Carbone, founder and wealth adviser of Focus Planning Group, says many future retirees are missing one key piece of the puzzle, and that piece could cost them dearly.</p> <p>&quot;I wish many of my clients understood the biggest hurdle from passing wealth on to their heirs is long-term care costs,&quot; says Carbone. &quot;Whether it is home health care, assisted living, or the dreaded nursing home. It is real and it is scary.&quot;</p> <p>According to Carbone, most people have no idea how much long-term care costs and fail to plan as a result. &quot;Even though the average stay is only 2.7 years in a nursing home, the total cost for those 2.7 years could be well over $400,000,&quot; he says</p> <p>To help in this respect, Carbone and his associates suggest working with an attorney who specializes in elder law. With a few smart money moves, families can prepare for the real possibility of using a nursing home at some point. (See also: <a href="http://www.wisebread.com/is-long-term-care-insurance-worth-it?ref=seealso">Is Long Term Care Insurance Worth It?</a>)</p> <h2>One more thing advisers wish you knew</h2> <p>While financial advisers don't know everything, their years of experience make them painfully aware of what lies ahead for those of us who fail to plan. And, if there's one thing financial planners can agree on, it's this: The sooner we all start planning, the better off we'll be.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/holly-johnson">Holly Johnson</a> of <a href="http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-face-4-ugly-truths-about-retirement-planning">How to Face 4 Ugly Truths About Retirement Planning</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do">If You&#039;re Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-ways-more-money-in-retirement-might-cost-you">3 Ways More Money in Retirement Might Cost You</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-enjoy-retirement-if-you-havent-saved-enough">How to Enjoy Retirement If You Haven&#039;t Saved Enough</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-surprising-truth-of-investing-mediocre-advice-is-best">The Surprising Truth of Investing: Mediocre Advice Is Best</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement 4 percent rule advice contributions financial advisers investments long term care planning social security Wed, 05 Apr 2017 08:30:15 +0000 Holly Johnson 1921765 at http://www.wisebread.com 11 Secrets You Need to Tell Your Financial Adviser http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/11-secrets-you-need-to-tell-your-financial-adviser" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-165869622.jpg" alt="Couple sharing secrets they need to tell their financial adviser" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>So you've made an appointment to sit down with a financial adviser and formulate a plan for your future. Are you prepared to talk about your full money situation? In order to truly help you, your financial adviser needs to look at the big picture. That means there can be no major money secrets.</p> <p>Financial advisers will often begin each session by asking a lot of questions that may seem personal. But they'd be negligent if they didn't. In fact, it's their fiduciary duty to learn as much about you as they can in order to advise you properly.</p> <p>Here's a list of secrets you'll need to share with your financial planner if you want the best advice.</p> <h2>1. All of your debt</h2> <p>When you're being crushed under a mountain of debt, you may not want to talk about it. But a financial adviser is perhaps the best person to discuss it with. Your adviser can't craft a sound financial plan for you if they're unaware that a good chunk of your income is going to pay off debt. If you let them know about your full debt situation, however, they may be able to assist you in climbing out of the hole and onto the path toward financial freedom.</p> <h2>2. Any job loss</h2> <p>It's not always easy to admit you are out of work. But a financial adviser can't help you properly if you don't provide a full picture of your income situation. If you're out of work now, let your adviser know. If you were out of work for a long stretch in the past, let them know that as well. Financial advisers can also help you navigate what to do when your income has been cut, as well as advise you on what to do with old 401(k) accounts and pension money. (See also: <a href="http://www.wisebread.com/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do?ref=seealso" target="_blank">If You're Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do</a>)</p> <h2>3. Family members you support</h2> <p>Do you pay child support? Do you regularly send money to your brother up in Buffalo? Do you have an elderly parent living with you? Your financial adviser will want to know about any money you spend to support other people, even if it's only occasionally or informally. These are expenses that have an impact on your overall financial picture, and are not the kinds of costs that you can easily eliminate.</p> <h2>4. Sizable gifts</h2> <p>You're fortunate enough to be given $25,000 from your generous Uncle Steve, but you feel like it's really not something you want people to know about. After all, who might come knocking on your door now that you have this extra cash on hand? That's understandable, but it's important to tell your financial adviser, because they can offer advice on what to do with the new funds. An unexpected influx of cash, even if it's just a one-time gift, can have a ripple effect on your overall saving strategy.</p> <h2>5. Tax troubles</h2> <p>Have you been diligent about paying your taxes? If not, this is something you'll want to tell your adviser. This goes for late taxes, tax liens on properties, and past audits. The longer you wait to take care of tax problems, the more you may end up paying in penalties and fees. Your financial adviser can help you clean up your tax issues, and will be in a better position to help you plan your future.</p> <h2>6. The status of your marriage</h2> <p>If you're meeting with an adviser, it helps to let them know if you're about to get married, or if your marriage is about to end. Marriage and divorce have all kinds of financial implications on everything from income to taxes to planning for retirement.</p> <h2>7. Your vices</h2> <p>Gambling. Alcoholism. A shopping addiction. We all have our bad habits, but it's important to be aware of those vices that impact your finances. Are you at risk of incurring debt due to a major gambling binge? Is alcohol preventing you from landing steady work? Your financial adviser can't accurately assess your finances if they don't know the situation.</p> <p>According to Doug Amis, a CFP with Cardinal Retirement Planning in Cary, NC, even casual marijuana use is something clients should disclose to planners, because many life insurance companies still test for it.</p> <h2>8. Anything that your kids need to know</h2> <p>Hans Scheil, CEO and owner of Cardinal Retirement Planning, says that his most challenging clients are those who have kept important information from family members. This secrecy can create difficulty in later years, when facing important estate decisions.</p> <p>&quot;What happens with people now is that they develop dementia, or some sort of chronic illness, and they end up needing care,&quot; Scheil said. &quot;This is when all of the family scandals come out.&quot;</p> <p>Scheil says it's important to anticipate what your children and grandchildren may need to know about your estate to avoid strife down the road.</p> <h2>9. Charitable giving</h2> <p>It may seem odd to think of this as something you'd hide, but financial advisers say they've met with clients who have quietly been giving to a cause that their spouse or other loved ones might not agree with. Your donations to charity may not seem like anyone's business, but they can impact your overall savings if you give a substantial amount. A financial adviser can also walk you through getting tax deductions for your charitable donations.</p> <h2>10. Your own lack of financial knowledge</h2> <p>Are you the type who doesn't know an IRA from an IPA? Are you mystified by mutual funds and baffled by bonds? It's OK, your financial adviser is not there to judge you and will likely be more annoyed by any attempt to bluff your way through a meeting. Financial advisers can help you understand the ins and outs of investing and estate planning, so it's useless to pretend to know more than you do.</p> <h2>11. All of your side hustles</h2> <p>When your financial adviser asks you about your income, they want to hear about everything. Not just your day job, but your side work giving piano lessons, your freelance writing, your pottery sales, and even your gambling winnings. You may be hiding this income because you don't want to pay taxes. But your adviser needs to know about this extra income, or else any financial plan they create will be flawed. Moreover, your financial adviser can often give you advice on how to turn a quiet side hustle into a legitimate, profitable business.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-a-divorce-improve-your-finances">Could a Divorce Improve Your Finances?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-conversations-every-couple-should-have">5 Money Conversations Every Couple Should Have</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-every-woman-can-take-control-of-her-finances">How Every Woman Can Take Control of Her Finances</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/does-divorce-affect-your-student-loans">Does Divorce Affect Your Student Loans?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance debt divorce financial advisers financial planning gambling honesty job loss marriage Secrets taxes Tue, 28 Mar 2017 10:01:05 +0000 Tim Lemke 1915280 at http://www.wisebread.com How to Spot Lousy Investment Advisers http://www.wisebread.com/a-field-guide-to-lousy-investment-advisers <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/a-field-guide-to-lousy-investment-advisers" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-482448336.jpg" alt="Learning about lousy investment advisers" title="" class="imagecache imagecache-250w" width="250" height="143" /></a> </div> </div> </div> <p>You can easily hire people who claim to be good investment advisers. They hardly ever are. But there are several different kinds of downright lousy investment advisers, and it's worth learning how to identify them. (See also: <a href="http://www.wisebread.com/the-surprising-truth-of-investing-mediocre-advice-is-best?ref=seealso" target="_blank">Mediocre Advice Is Best for Investing</a>)</p> <p>I group them into three categories: The delusional, the liar, and the secretly mediocre.</p> <h2>The Delusional</h2> <p>The most common sign of the delusional financial adviser is that they can tell you about all the winning trades they've made, but they don't know the average annual return of their portfolio as a whole.</p> <p>You'll find this same trait in a lot of ordinary investors, as well &mdash; they're full of stories of their investing successes. They may also have a few self-deprecating stories of investments that went wrong. But they simply don't know what their all-in return actually is.</p> <p>For the ordinary investor, this is no big deal. But for someone selling their investment expertise, not knowing whether their advice beats what you can get following mediocre advice should disqualify them completely.</p> <p>There is one important subcategory of lousy investment adviser that might not show this sign. I call them the &quot;lucky so far.&quot; They're usually young with a pretty new track record. Typically, they're people who have a strong sense that one sector of the market &mdash; financial stocks, say, or precious metals &mdash; is the right choice for long-term investing. If they happen to get into the investment advising game right when their sector gets hot, they can produce outstanding investment returns, sometimes for a long time. Eventually the market turns against them and they lose a whole lot of their clients' money.</p> <p>Of course there are a few <em>legitimately</em> superior investment advisers out there. It's really impossible to tell one of them from one of the &quot;lucky so far,&quot; except that once they establish a record of shifting from this year's hot sector into next year's hot sector for several years in a row, somebody rich will notice and pay up to get their advice. One pretty good indication is that you won't be able to afford them.</p> <h2>The Liar</h2> <p>Just like the delusional financial adviser, there are many kinds of lying financial advisers. (Note that I'm not talking about scammers or fraudsters, just ordinary financial advisers who know their advice doesn't produce superior results, but hold themselves out as superior anyway.)</p> <p>Probably the most common are the ones who used to be delusional, but eventually figured out that they weren't actually superior. Of course the honest thing to do then would be to find another career, but delusional financial advisers can make a lot of money, and that's hard to give up.</p> <p>It's pretty easy to slip gradually into lying about your performance &mdash; just talk about your successes, and don't mention your failures.</p> <p>The clearest sign of the liar is that they claim an &quot;average annual return,&quot; but can't point to the specific trades that they or their clients made that produced this return. Instead, they'll point to lists of suggested trades &mdash; but if you have access to all the suggestions, it'll turn out that some of the bad ones don't make the list.</p> <p>Another strong clue is vague advice, such as that you buy a stock &quot;on dips,&quot; without specific numbers attached. This will make it easy for them to leave out losing trades (on the grounds that the dips were never low enough for them to enter the trade). They will also suggest that you use peaks in the market to &quot;begin to lighten up&quot; your position. If the stock continues to outperform, you'll find that they still list it in their model portfolio. Once it starts to lag, you'll see that they exited their position at the last high point.</p> <p>Another common habit among the liars is to ignore trading costs &mdash; and the cost of their advice &mdash; when figuring the bottom line.</p> <h2>The Secretly Mediocre</h2> <p>When &quot;index investing&quot; first started getting big, financial magazines (and others who rated financial advisers) started comparing investment advisers' returns to the market averages. Lousy advisers often fell short, which was pretty embarrassing. A fair number reacted by shifting their advice to just the sort of mediocre advice I'm suggesting that you follow. That way, they'd at least match the market returns.</p> <p>These investment advisers are giving you perfectly good advice, they're just charging you money to achieve performance you could get for free on your own.</p> <p>You can spot the secretly mediocre advisers either by looking at their returns or by looking at their portfolio. In either case, it will end up looking a lot like the return or portfolio you could get from just following the indexes.</p> <h2>My Mediocre Advice</h2> <p>Genuinely superior advice from (extremely rare) genuinely superior investment advisers is generally so expensive it makes no sense to pay for it, unless you have a portfolio of millions of dollars.</p> <p>Since Wise Bread is all about living large on a small budget, I figure it's pretty likely that you don't have the multimillion-dollar portfolio that would let superior financial advice pay for itself. In that case, I suggest that you just follow the <a href="http://www.wisebread.com/the-3-rules-every-mediocre-investor-must-know?ref=internal" target="_blank">mediocre advice</a> I wrote about last time. Doing that, you'll get mediocre returns &mdash; which it turns out, are good enough.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/a-field-guide-to-lousy-investment-advisers">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-11"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-surprising-truth-of-investing-mediocre-advice-is-best">The Surprising Truth of Investing: Mediocre Advice Is Best</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-3-rules-every-mediocre-investor-must-know">The 3 Rules Every Mediocre Investor Must Know</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-investing-tips-you-wish-you-could-tell-your-younger-self">11 Investing Tips You Wish You Could Tell Your Younger Self</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-essentials-for-building-a-profitable-portfolio">5 Essentials for Building a Profitable Portfolio</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement">7 Things Financial Advisers Wish You Knew About Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment advice delusional financial advisers liars mediocre returns success Mon, 06 Mar 2017 10:30:37 +0000 Philip Brewer 1902765 at http://www.wisebread.com If You're Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do http://www.wisebread.com/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-519505869.jpg" alt="Man receiving pension and doing these things" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Pensions are becoming a thing of the past &mdash; so if you're still entitled to one, consider yourself lucky. Once you have a pension, however, what will you do with it? How will you manage it? Here are a few suggestions on how to handle your well-earned windfall.</p> <h2>1. Request an Updated Pension Statement Annually</h2> <p>Call me crazy, but I check my bank account every morning when I wake up. It's all still there each day, but I don't like to take any chances. You need to keep an eye on your pension, too. Granted, you don't need to check in every day, but you should request an update once a year.</p> <p>&quot;Like your Social Security benefits, your pension benefit amounts can change,&quot; explains Brannon T. Lambert, owner of the investment firm Canvasback Wealth Management. &quot;Not only that, but pensions can have several options for payouts, survivor benefits, or cash out options. You want to know every option available to you especially if you are married or have dependents.&quot;</p> <h2>2. Weigh Your Payout Options Carefully<strong> </strong></h2> <p>Before the IRS passed a law in 1978 to make self-funded 401Ks possible, many companies provided employees pensions &mdash; a fund that accrued in value over time to ensure that their employees were at least modestly supported through their retirement. That's all but reversed nowadays. In 1979, 28% of all workers were <a href="https://www.ebri.org/publications/benfaq/index.cfm?fa=retfaq14" target="_blank">enrolled with pension plans</a>, whereas only 2% of today's workforce is enrolled. Conversely, between 95% and 98% of employers <a href="http://www.cheatsheet.com/personal-finance/5-best-ways-for-companies-to-improve-401k-plans.html/?a=viewall" target="_blank">offer 401K plans</a>. Go figure.</p> <p>When it's time to receive your pension, the first decision you'll need to make is how you want to receive the money&mdash; which, in turn, raises many important questions. Morgan Christen, CFA at Spinnaker Investment Group in Southern California, explains your options.</p> <p>&quot;Pension planning involves many decisions that are irrevocable; anyone that will receive a pension should learn about all of the payout options,&quot; he says. &quot;Do you want to receive income for your life? Do you want to make sure a spouse is covered should you pass away? If you want to cover a spouse, how much of your benefit do you want that person to receive &mdash; 100%, 75%, or 50%?&quot;</p> <p>These are all things to think about when it comes time to take your pension. Keep in mind that if you want to cover a spouse, you will be taking a reduced amount on a monthly basis &mdash; and if your spouse predeceases you, you may not be able to change course.</p> <h2>3. Investigate the Social Security Offset Provisions<strong> </strong></h2> <p>You may expect a certain dispersed dollar amount each month when your pension begins, but you could be caught off guard if it changes down the road. Your Social Security payments may be the culprit.</p> <p>&quot;Some pensions come with Social Security offset provisions,&quot; Lambert explains. &quot;This means that your pension benefit amount could be one dollar figure initially, but once Social Security benefits begin, your pension will be reduced somewhat depending how much they offset. It could possibly be dollar-for-dollar up to a preset limit. This can come as a big surprise if you are not aware of it.&quot;</p> <h2>4. Research Your Investment Opportunities<strong> </strong></h2> <p>If you want to roll the dice with your pension, that's your prerogative &mdash; but you need to go into any investment situation well-informed of what you're getting into. This is money that needs to last the rest of your life, and you don't want to squander it because of poor decision-making. Do you research and get level with expectations so you're not blindsided by bad news.</p> <p>&quot;When it comes to pensions, many people assume that the managers of the funds will do the investment on behalf of the participants, which is rarely true,&quot; says Justin Kumar, senior portfolio manager at investment firm Arlington Capital Management in Arlington Heights, Ill. &quot;Participants must elect their investment options from the lineup of available funds, but if they do not, they will often be invested in the default option. The problem is that the default is usually some type of cash or money market equivalent funds. Although these funds may be a safer option, they will not participate in market uptrends, leaving participants confused at the end about why they may not have more money.&quot;</p> <p>Furthermore, for those participants with limited investment options, there may be language in the pension plan documents that specifies an age &mdash; such as 55 or 59 1/2 years old &mdash; in which pension funds can be rolled over by a participant into an IRA, thus allowing access to a greater universe of investment possibilities. Participants should consult with their pension consultants and perhaps with an outside adviser to determine the best course of action when making these investment decisions.</p> <h2>5. Avoid Greedy Financial Advisers<strong> </strong></h2> <p>How do you know if a financial adviser has your best interest at heart? Mark Zoril, founder of the retirement-planning firm PlanVision, reveals how to spot the con artist.</p> <p>&quot;As someone evaluates and reviews their options, it is important to understand the pros and cons of taking the pension or transferring it to an IRA,&quot; he says. &quot;Unfortunately, far too many advisers' compensation is directly impacted by what someone does with their pension. Therefore, they are strongly incentivized to convince people of the benefits of cashing out their pension. In fact, a transfer from a pension can be a very strong payday for an adviser.&quot;</p> <p>This applies to so-called &quot;fiduciary&quot; advisers as well.</p> <p>&quot;Many of these advisers promote how they are 'fee only' and offer objective guidance,&quot; Zoril adds. &quot;However, if they charge their clients based upon assets under management &mdash; the most common model of advisers &mdash; they have a huge conflict of interest in providing guidance on this particular topic.&quot;</p> <p>It's important that you seek the guidance of a professional &mdash; perhaps someone you know well in that field, and not someone who's blinded by your potential investment &mdash; regarding your pension plan to fully understand whether or not the advice you're seeking will be influenced by their adviser's compensation. This presents a real risk to your evaluation process.</p> <h2>6. Plan for the Taxes You're Required to Pay<strong> </strong></h2> <p>Your pension is not tax-free. It will be taxed as regular income. You need to plan and save for that bill so you stay in good standing with the IRS. You don't want to spend your golden years in the slammer, do ya?</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <p>&nbsp;</p> <p style="text-align: center;"><a href="//www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fif-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FIf%20Youre%20Lucky%20Enough%20to%20Receive%20a%20Pension%2C%20Here%20Are%206%20Things%20You%20Need%20to%20Do.jpg&amp;description=If%20Youre%20Lucky%20Enough%20to%20Receive%20a%20Pension%2C%20Here%20Are%206%20Things%20You%20Need%20to%20Do" data-pin-do="buttonPin" data-pin-config="above" data-pin-color="red" data-pin-height="28"><img src="//assets.pinterest.com/images/pidgets/pinit_fg_en_rect_red_28.png" alt="" /></a> </p> <!-- Please call pinit.js only once per page --><!-- Please call pinit.js only once per page --><script type="text/javascript" async defer src="//assets.pinterest.com/js/pinit.js"></script></p> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/If%20Youre%20Lucky%20Enough%20to%20Receive%20a%20Pension%2C%20Here%20Are%206%20Things%20You%20Need%20to%20Do.jpg" alt="If You're Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement">7 Things Financial Advisers Wish You Knew About Retirement</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-your-financial-planner-isnt-telling-you-about-retirement">5 Things Your Financial Planner Isn&#039;t Telling You About Retirement</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-ways-to-boost-your-social-security-payout-before-retirement">6 Smart Ways to Boost Your Social Security Payout Before Retirement</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-states-with-the-lowest-taxes-for-retirees">7 States With the Lowest Taxes for Retirees</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/stop-making-these-10-bogus-retirement-savings-excuses">Stop Making These 10 Bogus Retirement Savings Excuses</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement fiduciary financial advisers investment opportunities payout pensions social security taxes Tue, 21 Feb 2017 11:00:11 +0000 Mikey Rox 1894200 at http://www.wisebread.com The Surprising Truth of Investing: Mediocre Advice Is Best http://www.wisebread.com/the-surprising-truth-of-investing-mediocre-advice-is-best <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-surprising-truth-of-investing-mediocre-advice-is-best" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-538027758.jpg" alt="Man learning mediocre investing advice is best" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>My investing success made it possible for me to quit working a regular job 10 years ago, at age 48. Even so, I have written very little about investing compared to what I've written about other personal finance topics. There's a reason for that: I'm a mediocre investor.</p> <p>Over the course of my career as a software engineer, I saved and invested, earning a mediocre investment return. Since becoming a full-time writer, I've continued to earn investment returns &mdash; which although still mediocre, have been enough to supplement my income from writing.</p> <p>As a mediocre investor, I have hesitated to hold myself out as an investment adviser, even if my results have met my own needs in a very satisfactory way. I figured people would quite legitimately compare me to superior investment advisers, and it was a comparison that I didn't think would put me in the best light. And yet, I'm going to overcome my hesitation, because looking for superior investment advisers is probably a mistake.</p> <p>There are two big reasons why mediocre investment advice is the better choice: It's adequate, and it's cheap.</p> <h2>Mediocre Investing Advice Is Adequate</h2> <p>The purpose of your investment portfolio is to support your goals in life, and a mediocre return will do the trick. A mediocre return &mdash; just a few percentage points over inflation &mdash; will turn a modest flow of savings into a portfolio large enough to let you buy a house, send your kids to college, and fund a retirement (even an early retirement).</p> <p>Trying to get a better-than-mediocre return requires taking financial risks that put all your life goals at risk.</p> <p>If you have plenty of money available for investing, you can do both. You can cover your basic life goals with a portfolio invested for mediocre returns, and then you can direct your surplus investible funds into a portfolio that shoots for superior returns.</p> <p>It can be fun if you enjoy that sort of thing. I did some of that. Looking back, I'd probably have been better off just going for mediocre returns on the whole thing.</p> <h2>Mediocre Investing Advice Is Cheap</h2> <p>Superior investing advice tends to be expensive. It's expensive because it's worth it &mdash; but it's really only worth that much to the truly wealthy.</p> <p>Think about it. Let's say really good advice can boost your average annual return by five percentage points. On a $100,000 portfolio, that's an extra $5,000 a year. On a $1 billion portfolio, it's an extra $50 million a year. If someone can really earn that kind of extra return, they won't be working for you. They'll be working for the 1%.</p> <p>And it's not only getting superior advice that's expensive. Just following it is expensive. Following any financial advice &mdash; good or bad &mdash; costs money, but not only is getting mediocre advice cheap, following it tends to be cheap as well. And that cost savings turns out to support your investment returns better than even pretty good advice does.</p> <h2>Go With Mediocre</h2> <p>Just looking for superior financial advice is fraught. Most people who say they're providing superior investment advice are wrong. Some are simply deluded, others are flat-out lying. Either way, you really don't want to follow their financial advice &mdash; following bad financial advice can easily cost you your life savings.</p> <p>Fortunately, it's easy to tell the difference: Bad financial advice costs money, while mediocre financial advice tends to be free (or nearly so).</p> <p>Where can you get mediocre financial advice? Lots of places. You might start with two books I reviewed here on Wise Bread years ago that provide just the sort of mediocre financial advice I'm talking about:</p> <ul> <li><a href="http://www.wisebread.com/book-review-the-little-book-of-common-sense-investing" target="_blank">The Little Book of Common Sense Investing</a> by John C. Bogle: A perfect capsule of mediocre investment advice. It's also really short, because you can say about all there is to say about mediocre investing in a really short book.<br /> &nbsp;</li> <li><a href="http://www.wisebread.com/book-review-the-only-investment-guide-youll-ever-need?ref=internal" target="_blank">The Only Investment Guide You'll Ever Need</a> by Andrew Tobias: A slightly longer book that also covers basic personal finance stuff &mdash; so, not just investing your money, but also earning, spending, and insuring it.</li> </ul> <h2>How to Know It's Mediocre</h2> <p>It's easy to tell if the advice you're getting is the sort of mediocre advice you want. There are two characteristics to look for:</p> <ol> <li>It's free &mdash; or, available for no more than the cost of a book.</li> <li>It doesn't claim to be better than mediocre.</li> </ol> <p>If somebody charges money for their advice &mdash; or, more importantly, charges a commission, or a percentage of your assets for their advice &mdash; then it's probably not mediocre financial advice. (Charging a small fraction of 1% to cover the costs of running an investment fund is fine. It's charging extra on top of that for advice that's the danger sign.)</p> <p>If somebody claims that their advice is superior investment advice, or in any way better than mediocre financial advice, then it probably isn't mediocre financial advice.</p> <p>If you spot any of those warnings signs, I suggest that you avoid those advisers. It doesn't really matter whether they are people who genuinely think they're providing superior financial advice, or people who are just playing on your hopes for superior financial advice. If you follow their investment advice, I can confidently predict that your long-term investment returns &mdash; after expenses &mdash; will be crappy. And crappy returns mean a lower standard of living, less security, no chance to retire early, and maybe no retirement at all.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/the-surprising-truth-of-investing-mediocre-advice-is-best">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-14"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-field-guide-to-lousy-investment-advisers">How to Spot Lousy Investment Advisers</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-3-rules-every-mediocre-investor-must-know">The 3 Rules Every Mediocre Investor Must Know</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-investing-tips-you-wish-you-could-tell-your-younger-self">11 Investing Tips You Wish You Could Tell Your Younger Self</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-essentials-for-building-a-profitable-portfolio">5 Essentials for Building a Profitable Portfolio</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement">7 Things Financial Advisers Wish You Knew About Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment advice early retirement financial advisers mediocre returns success Mon, 20 Feb 2017 10:30:26 +0000 Philip Brewer 1892846 at http://www.wisebread.com 5 Things Your Financial Planner Isn't Telling You About Retirement http://www.wisebread.com/5-things-your-financial-planner-isnt-telling-you-about-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-things-your-financial-planner-isnt-telling-you-about-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/couple_financial_planner_485026010.jpg" alt="Couple learning what their financial planner isn&#039;t telling them about retirement" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Personal finances can get complicated fast, which is why many people seek the assistance of a financial adviser. Especially when considering your retirement, it can give you extra confidence to know that a professional is helping ensure you make the best decisions for your future.</p> <p>It may therefore come as a surprise to know that historically, financial advisers haven't been required to put your best interests first. But in April 2016, the Labor Department finalized a new rule that requires financial advisers who deal with retirement accounts to respect what's known as the fiduciary standard, meaning they <em>have</em> to put the client's interests first.</p> <p>Before, financial advisers just had to follow the suitability standard, which meant they were only required by law to provide clients a &quot;suitable&quot; plan, which might satisfy your basic requirements but isn't necessarily the best plan for you.</p> <p>When they're doing their job well, a financial adviser can help you invest your money wisely and plan for retirement. But it's always important to do your own research and stay informed. When it comes to retirement, here are some things your financial planner may not have brought to the table.</p> <h2>1. Fees May Grow With Your Assets</h2> <p>Financial advisers often charge based on a percentage of the assets they are managing for you. Unfortunately, the fees compound over time, just as your returns do. By the time you're ready to retire, that could mean you're paying thousands of dollars a year in fees.</p> <p>As your nest egg grows, keep an eye on your fees and renegotiate your rates, so you don't end up paying too much for their services.</p> <h2>2. Retiring Abroad Can Halve Living Costs</h2> <p>If you're feeling tight on funds for retirement and you're not sure how to make your money go further, there's an important alternative that you should be considering. Retiring abroad can <a href="http://www.wisebread.com/retire-for-half-the-cost-in-these-5-countries?ref=internal">cut your retirement costs in half</a>. (See also: <a href="http://www.wisebread.com/x-exciting-world-cities-you-can-afford-to-retire-in?ref=seealso" target="_blank">4 Exciting World Cities You Can Afford to Retire In</a>)</p> <p>However, many U.S.-based financial advisers are entirely focused on domestic retirement and that's what they'll help you plan for. Plus, it may be in their interest to keep you close so you don't decide to move your funds elsewhere.</p> <p>If retiring abroad is something you want to truly consider, seek an expert who brings that specialty expertise to the table. You should also do your own research, including finding online forums for expatriates to answer your questions about retiring abroad. (See also: <a href="http://www.wisebread.com/5-incredible-places-to-retire-abroad-that-anyone-can-afford?ref=seealso" target="_blank">5 Incredible Places to Retire</a>)</p> <h2>3. Travel and Retirement Go Hand in Hand</h2> <p>If you've written off the idea of traveling as being too expensive, and these views are being reaffirmed by a conservative financial planner, it's time to re-evaluate. Retirement affords you great flexibility and the price of travel may be within closer reach than you realize.</p> <p>See also: <a href="http://www.wisebread.com/how-one-woman-retired-at-60-and-traveled-the-world?ref=seealso2" target="_blank">How One Woman Retired at 60 and Traveled the World</a></p> <p>Costs in many countries are often much lower than at home, and if you plan carefully &mdash; especially if you're able to start socking away money early in your career &mdash; your monthly budget may be able to absorb the extra expense of plane tickets, accommodations abroad, food, and entertainment. <a href="http://www.wisebread.com/top-5-travel-reward-credit-cards?ref=internal" target="_blank">Rewards credit cards</a> can help you <a href="http://www.wisebread.com/9-ways-to-use-travel-rewards-cards-to-get-free-trips" target="_blank">earn free travel</a>, too.</p> <p>See also: <a href="http://www.wisebread.com/how-to-travel-full-time-for-17000-a-year-or-less?ref=seealso2" target="_blank">How to Travel Full-Time for $17,000 a Year (or Less!)</a></p> <h2>4. An HSA Could Lower Your Health Care Costs</h2> <p>If you have a high-deductible health insurance plan, you may be eligible for a Health Savings Account. As with an IRA, HSA contributions are tax-free and they grow tax-free. You can leave money in the account for years and if you withdraw the funds to pay for qualified health care costs, you will still not pay taxes on the money. If you have a balance at age 65 and want to use it for nonmedical expenses, you can, but the withdrawals will be taxable. (See also: <a href="http://www.wisebread.com/how-an-hsa-saves-you-money?ref=seealso" target="_blank">How an HSA Saves You Money</a>.)</p> <p>Keep in mind that only people enrolled in qualifying high-deductible health care plans are eligible. But if you're one of them, an HSA could be an important part in reducing your health expenses during retirement.</p> <h2>5. You May Be Able to Ditch Your Life Insurance</h2> <p>Having a life insurance policy is useful if someone else will be financially hurt when you die. However, depending on your particular situation, you may no longer have dependents after you retire. Or you may have investments and pensions that pay 100% to the surviving spouse. In that case, your spouse won't suffer financially from your death and you probably don't need life insurance.</p> <p>There are a lot of variables to consider when planning for retirement, and a financial planner can clarify your options. But while a financial planner can be a helpful resource, they aren't the ultimate authority on what's best for you. Stay informed and choose what's best for you and your family.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/5-things-your-financial-planner-isnt-telling-you-about-retirement">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-travel-in-retirement-keeps-you-young">6 Ways Travel in Retirement Keeps You Young</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/retire-for-half-the-cost-in-these-5-countries">Retire for Half the Cost in These 5 Countries</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-keys-to-an-early-retirement">4 Keys to an Early Retirement</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-almost-anyone-can-afford-to-retire-in-mexico">How Almost Anyone Can Afford to Retire in Mexico</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/if-youre-lucky-enough-to-receive-a-pension-here-are-6-things-you-need-to-do">If You&#039;re Lucky Enough to Receive a Pension, Here Are 6 Things You Need to Do</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement expats fees fiduciary financial advisers financial planners health care life insurance living abroad retiring overseas travel Tue, 10 Jan 2017 11:00:09 +0000 Nick Wharton 1870053 at http://www.wisebread.com 5 Essentials for Building a Profitable Portfolio http://www.wisebread.com/5-essentials-for-building-a-profitable-portfolio <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-essentials-for-building-a-profitable-portfolio" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/growing_money_trees_84090749.jpg" alt="Finding essentials for building profitable portfolio" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>For many people, investing is the most complicated and intimidating aspect of managing money. But it doesn't have to be. Here are some of the essentials for building a successful investment portfolio.</p> <h2>1. Know What You're Investing For</h2> <p>Investing is best done with a purpose in mind. Investing for a child's <a href="http://www.wisebread.com/when-should-you-start-saving-for-your-child-s-education">future college costs</a> is not the same as investing for your retirement. You would use different investment vehicles &mdash; a 529-plan account or Coverdell Education Savings Account for college, and an <a href="http://www.wisebread.com/401k-or-ira-you-need-both">IRA or 401K</a> for retirement.</p> <h2>2. Know Your Time Frame</h2> <p>Investing is for goals you want to accomplish in five or more years. Anything shorter than that and you can't afford to take much, if any, risk, so you would be best served by a savings account.</p> <p>Still, a &quot;five or more years&quot; time horizon contains a wide range of options. Someone planning to retire in 10 years should invest quite differently than someone planning to retire in 30 years. The first person can't afford to take as much risk as the second person. By the same token, the second person can't afford the risk of playing it too safe.</p> <h2>3. Know Your Temperament</h2> <p>This has to do with how well you sleep at night when the stock market is in free fall. Vanguard has a decent <a href="https://personal.vanguard.com/us/FundsInvQuestionnaire">free assessment</a> that combines your investment time frame with your temperament to suggest an optimal asset allocation &mdash; that is, what percentage of your portfolio you should allocate to stocks and what percentage to bonds (or stock, or bond-based mutual funds).</p> <h2>4. Know How to Choose Specific Investments</h2> <p>If investing is the most complicated and intimidating aspect of managing money, choosing specific investments is the most complicated and intimidating aspect of investing. Very few people have the wherewithal to do this on their own. It's helpful to acknowledge that. As Clint Eastwood's Dirty Harry character noted, &quot;A man's got to know his limitations.&quot; Of course, the same is true for women!</p> <p>There's just too much to know. There are thousands of different investments to choose from. And it can be crazy confusing (and dangerous) to make these decisions based on the all-too-common articles about &quot;Last Year's Best-Performing Mutual Funds&quot; or &quot;Where to Invest to Take Advantage of Advances in Wind Power.&quot;</p> <p>The crucial decision you need to make is not so much about which investments to choose; it's about which investment process to use. Here are three options.</p> <h3>Go With a Target-Date Fund</h3> <p>The simplicity of such funds has made them tremendously popular. Most of the big mutual fund companies offer them. You just choose the fund with the year closest to the year of your intended retirement as part of its name (Fidelity Freedom 2050, for example). The fund is designed with what the fund company believes is the ideal asset allocation for someone with that retirement date in mind, and it even changes the allocation as you get closer to that target date, becoming increasingly conservative. It's a very simple process, but <a href="https://www.soundmindinvesting.com/articles/view/target-date-funds-the-devils-in-the-details">all target-date funds are not alike</a>. So, be informed.</p> <h3>Go With an Investment Adviser</h3> <p>He or she will get to know you and your goals and then tailor an investment strategy to you. Along the way, you will typically pay 1% of the amount of money you have the adviser manage for you each year. Also, advisers usually won't work with anyone with less than $100,000 to manage. If you go this route, ask friends for referrals and opt for a fee-based adviser (as opposed to one compensated by commissions) who works as a &quot;<a href="http://www.wisebread.com/who-to-hire-a-financial-planner-or-a-financial-adviser">fiduciary</a>.&quot;</p> <h3>Go With an Investment Newsletter</h3> <p>Whereas an investment adviser works with clients one-on-one, an <a href="https://www.soundmindinvesting.com/articles/view/what-investing-newsletters-do-that-financial-magazines-dont">investment newsletter</a> works with investors on a one-on-several thousand (or however many subscribers they have) basis. There are hundreds of investment newsletters, each with their own investment strategies. Subscribers gain access to the strategies along with the specific investment recommendations needed in order to implement the strategies. Subscription costs range from less than $200 per year to over $1,000 per year.</p> <h2>5. Know Some Market History</h2> <p>One of the biggest threats to your success as an investor can be seen in the mirror. When the market falls, it's easy to give in to fear and sell. When the market is booming, it's easy to give in to greed, and invest too aggressively.</p> <p>Far better to understand that the market cycles between bull markets and bear markets (growing markets and declining markets). Even within a specific year, there will be ups and downs.</p> <p>That's why it's so important to have a trusted investment selection process. With a good process in place, you should have some sense as to how your portfolio is likely to perform under a variety of market situations and you should be content to stay with it in good times and bad.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/5-essentials-for-building-a-profitable-portfolio">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-3-rules-every-mediocre-investor-must-know">The 3 Rules Every Mediocre Investor Must Know</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/your-loss-aversion-is-costing-you-more-than-your-fomo">Your Loss Aversion Is Costing You More Than Your FOMO</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-are-income-stocks">What Are Income Stocks?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-costly-mistakes-diy-investors-make">9 Costly Mistakes DIY Investors Make</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment advice college fund financial advisers money management portfolio retirement risk stock market target date funds Wed, 26 Oct 2016 10:00:11 +0000 Matt Bell 1820715 at http://www.wisebread.com 9 Costly Mistakes DIY Investors Make http://www.wisebread.com/9-costly-mistakes-diy-investors-make <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-costly-mistakes-diy-investors-make" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_ripping_paper_69469761.jpg" alt="Man making costly mistakes DIY investors make" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>With the right approach and education, it's possible for people to handle their own investments. But it's also easy to make mistakes that could cost you large sums of money in the long run.</p> <p>If you're a do-it-yourselfer, ask yourself whether you're making any of these mistakes below. If so, it may be worth seeking professional advice from a certified financial planner.</p> <h2>1. Trading Without Considering Fees and Taxes</h2> <p>For many investors, it's fun to trade stocks. The actual buying and selling can be a bit of a rush, especially when things are going well. But all of that activity can come with a cost, in the form of transaction fees and capital gains taxes. If you are finding that the returns on your portfolio seem a bit lackluster, it may be because you're investing without taking these costs into account. More experienced investors and financial advisers understand how to avoid extra fees and maximize returns as a result.</p> <h2>2. Getting Emotional</h2> <p>Investing your own money can sometimes be hard on the psyche. You may go through stretches where you see your portfolio shrink. Stocks that you personally selected may not always perform the way you predicted. Markets can be volatile, and not everyone can stomach it. If you find yourself getting stressed out by the investing process or buying and selling based on emotion, you may want to consider having a financial adviser take over the reigns.</p> <h2>3. Not Investing Enough</h2> <p>When you invest on your own, you may only be guessing as to how much you need to save. And it's common for investors to feel a little skittish and invest too little if the market is down. A financial adviser may be more tuned into the appropriate level of risk an investor can take on, and will usually advise a more aggressive approach for someone far out from retirement.</p> <h2>4. Not Diversifying Enough</h2> <p>Most do-it-yourselfers understand the basics of diversification, and will invest in index funds that track the S&amp;P 500 or broader stock markets. And that's perfectly fine. But often, these funds are heavily weighted toward larger companies or certain industries. If you are investing only in basic index funds, you may not have good exposure to international markets or smaller companies, for example. There may be entire industries that will be underrepresented in your portfolio.</p> <p>To achieve true diversification, you can have an S&amp;P Index fund as a base, but should also look for funds and stocks that fill in the gaps.</p> <h2>5. Failing to Rebalance</h2> <p>You may think you're creating a diverse portfolio based on the investments you've selected. But have you checked the balances recently? Over time, portfolios can get out of whack if certain investments are performing better than others. For example, you may think you're investing in 50% large cap, 25% small cap, and 25% mid cap stocks. Until one day, you check your account and realize that small cap stocks make up 40% of the portfolio. Financial advisers will recommend when to rebalance, and offer advice on how to avoid taxes in the process.</p> <h2>6. Trying to Beat the Market</h2> <p>Some investors insist on doing things themselves, because they believe they are expert stock pickers and can beat the performance of the overall stock market. In most cases, they are wrong. Numerous studies have shown that even professional investment managers can't beat the market on a regular basis, and that most investors would be best off with a portfolio of index funds.</p> <h2>7. Falling in Love With Shiny New Things</h2> <p>Do-it-yourselfers can become enamored with whatever the hot stock is at the moment. They go for name brands and flash rather than looking closely at a balance sheet. They also tend to go with what's familiar, rather than doing some research and finding investments that are less well known but of sound quality.</p> <h2>8. Having No Backup Plan</h2> <p>If you are an older DIY investor, do you have a plan for what happens to your investments if you are incapacitated? Are you sharing your investment accounts with your spouse or other loved ones? Many DIY investors are too stubborn to seek help from anyone, and thus run into problems when they are no longer in a position to manage things themselves. It's fine to handle your own investments if you're confident enough to do so, but it's wise to have a plan for how things will be dealt with if you're no longer in charge.</p> <h2>9. Becoming Too Consumed</h2> <p>Realistically, the average person can handle their own investments while checking in only periodically each week. A properly balanced portfolio does not need a lot of maintenance. But investing can be like an addiction to some people, and it's possible to spend hours a day buying and selling and becoming obsessed with the movement of the markets. If you're finding that your investing is having a negative impact on your relationships and other aspects of your life, it may be best to back off and let someone else handle things.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-costly-mistakes-diy-investors-make">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-too-much-investment-diversity-can-cost-you">How Too Much Investment Diversity Can Cost You</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-3-rules-every-mediocre-investor-must-know">The 3 Rules Every Mediocre Investor Must Know</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-essentials-for-building-a-profitable-portfolio">5 Essentials for Building a Profitable Portfolio</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-warren-buffett-says-you-should-invest-in-index-funds">Why Warren Buffett Says You Should Invest in Index Funds</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">11 Secrets You Need to Tell Your Financial Adviser</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment beat the market diversification DIY emotional investing fees financial advisers financial planning portfolio rebalancing stock market taxes Wed, 05 Oct 2016 10:30:08 +0000 Tim Lemke 1805247 at http://www.wisebread.com 9 Questions You Should Ask Before Hiring a Robo-Adviser http://www.wisebread.com/9-questions-you-should-ask-before-hiring-a-robo-adviser <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-questions-you-should-ask-before-hiring-a-robo-adviser" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_laptop_thinking_59984612.jpg" alt="Woman asking robo-adviser questions before hiring" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Many experts predict that robots will soon take over jobs across many industries. (See also: <a href="http://www.wisebread.com/robots-will-take-over-these-5-jobs-soon-is-one-of-them-yours?ref=seealso">Robots Will Take Over These 5 Jobs Soon &mdash; Is One of Them Yours?</a>)</p> <p>And this trend is certainly evident in the financial industry, where robo-advisers (an automated online service that provides algorithm-based portfolio management without any involvement of human financial advisers) are already taking over a substantial portion of investment management. By the end of 2015, U.S. robo-advisers managed an estimated <a href="https://www.bloomberg.com/quicktake/robo-advisers">$50 billion in assets</a>. That value is expected to rise to $2.2 trillion by 2020.</p> <p>With major investment fund firms, such as Vanguard and Fidelity, deeply in the robo-advice game, many individual investors will need to decide whether to hire the services of a robo-adviser. So, let's review nine key questions you should ask before you trust your money to a &quot;bot.&quot;</p> <h2>1. Am I Eligible for a Robo-Adviser?</h2> <p>While robo-advisers are gaining in popularity, not every single retirement plan or investment house is offering them as an option. Some retirement plan advisers eschew automated portfolio management to differentiate themselves from the competition. This means that your current employer-sponsored retirement account or investment account may not offer robo-advisers.</p> <p>Even when a robo-adviser is available, you may not be have enough money in your investment account or nest egg to make use of them. Depending on your preferred broker, robo-advisers require a minimum investment balance of anywhere from $1 (WiseBanyan) to $50,000 (Vanguard). There are companies that don't ask for a minimum, but you should evaluate whether opening a separate investment or retirement account makes sense for you. (See also: <a href="http://www.wisebread.com/how-too-much-investment-diversity-can-cost-you?ref=seealso">How Too Much Investment Diversity Can Cost You</a>)</p> <h2>2. What Services Do You Offer?</h2> <p>Just like human financial advisers, not all robo-advisers are the same. Automatic portfolio rebalancing and tax-loss harvesting (selling securities that have experienced a loss to offset taxes on both gains and income) are among the most common services. Additional offerings vary, and may include advice for retirement accounts and access to a human financial adviser. To have a clear picture of all of your options, be sure to review all the disclosures and terms.</p> <h2>3. What Are the Fees?</h2> <p>The main driver behind the shift toward automated wealth-management is the promise of lower fees. After all, hiring the professional investment management services of a human financial adviser can cost from 0.25% to 1.0% of your account balance. On the other hand, with a robo-adviser you can pay as low as 0.15% of your account balance (using Betterment) or a flat monthly fee of $5 (using blooom).</p> <p>Be aware that some robo-advisers may charge you nothing for portfolio management, but still send you a bill for applicable trading expenses. For example, WiseBanyan and Charles Schwab Intelligent Portfolios provide free portfolio management free of charge, but invest primarily in exchange-traded funds (ETFs) with moderate to high expense ratios. (See also: <a href="http://www.wisebread.com/4-sneaky-investment-fees-to-watch-for?ref=seealso">4 Sneaky Investment Fees to Watch For</a>)</p> <h2>4. What Information Do You Need From Me and How Do I Update It?</h2> <p>A robo-adviser is an automated tool that makes investment decisions based on your response to questionnaires and selection of investment criteria. Your input directly affects the actions of the robo-adviser, so develop a crystal clear understanding of the intake process, set of available answers to each question, lead time to process an update, and window of opportunity to make changes. Additionally, ask who you can contact in case you don't understand a question or term.</p> <p>The Securities and Exchange Commission (SEC) recommends checking with the company whether the questionnaire actually allows you to customize services or forces to fit you into the tool's predetermined options.</p> <h2>5. What Are the Key Assumptions?</h2> <p>This is one of those times that you must read the user's manual in full detail. Every robo-adviser operates within a set of predetermined investment guidelines and economic assumptions. For example, some may limit their trades to low-cost index funds and others may assume an inflation rate of 3% per year. Depending on the assumptions, your fund can have a very different outcome from the one that you expected. Ask for documentation regarding the investment methodology, set of economic assumptions, and list of trading guidelines. The main objective is to spot potential assumptions or guidelines that you're just not comfortable with at all.</p> <h2>6. What Are My Investment Options?</h2> <p>Just as when you <a href="http://www.wisebread.com/who-to-hire-a-financial-planner-or-a-financial-adviser">hire a financial adviser or financial planner</a>, check for the pay structure of a potential robo-adviser. Some investment houses may limit your investment options to only those from the same investment house, or worse, may receive kickbacks for purchasing specific financial vehicles. Still, you can have a robo-adviser that only trades with a limited set of securities and meets your unique investment needs. To be able to compare apples to apples, find out what the investment options are of any robo-adviser that you're considering.</p> <h2>7. Can the Robo-Adviser Offer Me More Later?</h2> <p>A robo-adviser can be a useful tool for individuals who are just starting to invest, have a low account balance, or have straightforward financial needs. As your account balance grows and your financial situation changes, you may need more advanced wealth management services, such as taxes, retirement planning, cash flow management, or estate planning that can be beyond the scope of your current robo-adviser. Finding out the service tiers of a robo-adviser is also an important criteria so you determine whether or not your robo-adviser can &quot;grow&quot; with you.</p> <h2>8. How Do I Terminate the Contract?</h2> <p>Understand the details of how to end a contractual relationship with the firm and how long it may take to cash out any investments if you decide to stop using the tool. For a robo-adviser involving retirement accounts, inquire about the applicable terms and conditions, if any, for a rollover to an external retirement account. (See also: <a href="http://www.wisebread.com/a-simple-guide-to-rolling-over-all-of-your-401ks-and-iras?ref=seealso">A Simple Guide to Rolling Over All of Your 401Ks and IRAs</a>)</p> <h2>9. How Do You Protect My Personal Data?</h2> <p>Last, but not least, remember that you're going to access an online service. Check for the steps that the company takes to protect your personal data and the policies in case of a security breach or phishing attempt. Also, ask whether or not the company shares your information with third parties. If so, ask who those parties are and how you can opt out of having your information made available to those parties.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/9-questions-you-should-ask-before-hiring-a-robo-adviser">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-costly-mistakes-diy-investors-make">9 Costly Mistakes DIY Investors Make</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-warren-buffett-says-you-should-invest-in-index-funds">Why Warren Buffett Says You Should Invest in Index Funds</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-surprising-truth-of-investing-mediocre-advice-is-best">The Surprising Truth of Investing: Mediocre Advice Is Best</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-invest-when-youre-in-debt">6 Ways to Invest When You&#039;re In Debt</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-your-financial-planner-isnt-telling-you-about-retirement">5 Things Your Financial Planner Isn&#039;t Telling You About Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Technology assumptions contracts fees financial advisers personal data portfolio management robo-advisers Thu, 22 Sep 2016 09:30:23 +0000 Damian Davila 1796991 at http://www.wisebread.com How Every Woman Can Take Control of Her Finances http://www.wisebread.com/how-every-woman-can-take-control-of-her-finances <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-every-woman-can-take-control-of-her-finances" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_office_organized_67054401.jpg" alt="Learning how women can take control of their finances" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It may seem patronizing or silly to offer specific retirement planning advice for women. After all, money is money, and compound interest works the same way whether the name on the account is John or Joan. And it's not as if we are living in an era where most women stay home instead of earning an income; today women make up nearly half of the workforce.</p> <p>But even if I feel like my husband's equal in earning power and investing know-how, the fact is that I am more likely than he is to be among the ranks of the elderly poor. In fact, a recent analysis by the National Institute on Retirement Security found that women are 80% more likely to be in poverty at age 65, and the disparities just get larger as women get older.</p> <p>There are many reasons why we women may not do as well as men in retirement preparation.</p> <p>&quot;Women statistically make less than men, so they have a smaller base to work with. And women tend to want to take care of others before themselves,&quot; said Sally Brandon, vice president of client services at investment adviser Rebalance IRA.</p> <p>Then there is the fact that more women take long breaks from full time work to care for children, and are more likely to work part time -&mdash; conditions that diminish our likelihood of socking away retirement funds.</p> <p>So what should women do to avoid having to subsist on Friskies in our latter years? Keep these things in mind.</p> <h2>Find an Adviser Who Listens to You</h2> <p>In my household, I handle our taxes and other finances. It's just not my husband's forte. So imagine my chagrin when I decided to hire an accountant, and he switched my husband's name to &quot;taxpayer&quot; and mine to &quot;spouse&quot; on our IRS forms. He said he did it because the IRS likes consistency &mdash; nevermind that we had consistently filed the other way for 15 years at that point!</p> <p>Other couples I know have met with <a href="http://www.wisebread.com/who-to-hire-a-financial-planner-or-a-financial-adviser" target="_blank">financial planners</a> who address all their questions to the husband only. That's why it's important to interview a potential adviser before committing. If you visit with your spouse, make sure the adviser addresses both of your concerns. Pay attention to how women working in the adviser's office are treated. And of course, if it makes you feel more comfortable, you can always hire a female adviser or one who specializes in helping women.</p> <p>Just as important as selecting an adviser you're comfortable with, Brandon says, is signaling to that adviser that &quot;you're a part of that process as much as the person next to you&quot; with your active participation. For instance, Brandon and her husband recently met with an estate planner together.</p> <p>&quot;I started asking a lot of questions, and by the end, everything was being addressed to both us, and not to just him,&quot; she says.</p> <h2>Make Your Retirement a Priority</h2> <p>A survey by financial services organization TIAA-CREF revealed that nearly half of women say they <a href="https://www.tiaa.org/public/about-tiaa/news-press/press-releases/pressrelease480.html">can't afford financial advice</a>, and one in three say they don't have time to seek it. That's another example of women putting the needs of others before their own.</p> <p>&quot;You get pulled and tugged in so many directions,&quot; said Brandon, herself the mom of three.</p> <p>Because starting early is key to amassing adequate retirement savings, it's important for everyone, including busy mothers, to take the time as soon as possible to set up a retirement savings plan and check up on it regularly.</p> <h2>Save Even If You're Not Working Full-Time</h2> <p>Women are <a href="https://www.dol.gov/_sec/media/reports/femalelaborforce/">twice as likely to work part time</a> as men, and we are also more likely to take extended <a href="https://hbr.org/2010/06/off-ramps-and-on-ramps-revisited/ar/1">breaks from the workplace</a> and have nonlinear career trajectories. If your career has taken this kind of path, it should be incorporated into your planning. Better yet &mdash; and I get that this can be tough &mdash; evaluate the effect that such a break or shift would have on your retirement before you decide to do it.</p> <p>One way to keep saving during a break, Brandon suggests, is by contributing to a spousal IRA, which is simply a regular IRA that a nonworking spouse can contribute to in order to keep retirement savings going even during a career break.</p> <h2>Don't Let Divorce Derail Your Future</h2> <p>No one plans for their marriage to end in divorce. Yet, after seeing too many friends and relatives have their finances shredded by divorce, I've come to the conclusion that all married people should be prepared to weather a divorce if necessary.</p> <p>Statistically, women are more likely to be financially hurt by divorce. We're more likely to have custody of the kids, and many single mothers receive no child support. Anecdotally, I know women who had no credit in their own names until they got divorced and found themselves applying for a credit card with no credit history, or even worse, a credit history that was shredded by the ex's actions.</p> <p>The first thing women can do to prepare for divorce is the same thing she can do to prepare for successful retirement if she stays married: Understand the family finances. Pay attention and ask questions. Don't leave it all to your spouse.</p> <p>The next part happens during the divorce: Fight for what you deserve. Divorce attorneys report seeing many women settle too soon in divorces and accept too small a share of the couple's net worth, just to get it over with. Some men bully and harass their wives into giving in, and even use the children against them.</p> <p>In divorce, as in marriage, remember that as important as the pressing issues of today may seem &mdash; the kids' needs, the stress &mdash; retirement can last a long time, and it will seem even longer if you have to spend it eating cat food.</p> <p><em>What are you doing to take control of your finances?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/how-every-woman-can-take-control-of-her-finances">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-10"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">11 Secrets You Need to Tell Your Financial Adviser</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-mistakes-to-stop-making-by-50">5 Money Mistakes to Stop Making by 50</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-biggest-financial-decisions-in-your-20s">The 6 Biggest Financial Decisions in Your 20s</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-savings-tricks-you-havent-tried-yet">5 Savings Tricks You Haven&#039;t Tried Yet</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-12-month-get-richer-plan">The 12-Month Get-Richer Plan</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance caretakers divorce financial advisers mothers poverty retirement savings sexism women Tue, 09 Aug 2016 10:30:17 +0000 Carrie Kirby 1766935 at http://www.wisebread.com How to Do Money Like a Grown-Up http://www.wisebread.com/how-to-do-money-like-a-grown-up <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-do-money-like-a-grown-up" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/child_falling_cash_000089352907.jpg" alt="Kid learning how to do money like a grownup" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Most of us aren't money experts &mdash; especially as young adults. So it comes as no surprise that our individual money matters can get a bit messy at times. But while it's one thing to have questionable, disorganized financial habits in your late teens and early 20s, as you move into your late 20s and early 30s, it's time to clean up your act and do money like an adult. Here's how, slacker:</p> <h2>1. Set Up Autopay to Prevent Missing a Payment</h2> <p>For the longest time I was afraid of using autopay, primarily from fear that I would forget about a bill and accidentally overdraw my account &mdash; and that the government was going to steal all my cash while I was sleeping. I recently put my fears aside and took advantage of this service, and let me tell you, it has simplified my life for the better (even though I'm still keeping a close eye on Big Brother.)</p> <p>Autopay is great because it puts your financial life on autopilot. I select the dates to have funds automatically drafted from my account, and as long as funds are available, my bills get paid &mdash; and I don't have to lift a finger. I do have to set reminders, however, to make sure that the necessary funds are available when needed, but that's much easier than all that check-writing and envelope-licking I used to do.</p> <h2>2. Start Making Digital Copies to Cut Down on Paper Clutter</h2> <p>Bank statements, credit card statements, and other bills can pile up on your desk, and if you don't have a system for keeping up with paperwork, finding important documents might require the help of a professional search team.</p> <p>I'm all too familiar with this scenario. But since getting rid of the clutter and investing in a digital scanner, I'm in better control of my finances. Being self-employed, I have to keep good, accurate records throughout the year and maintain receipts for tax time. I used to have a shoebox, but that system was anything but organized, and it made calculating expenses at the end of the year a royal pain in the neck. Digitally scanning receipts and other important paperwork has saved me a lot of time and headache and there's less paper all over the place.</p> <p>Whenever I receive a document that I need to keep, it takes less than a minute to scan and categorize. And when I need to retrieve a document, I can usually find it in less than 30 seconds, which is a lot better for my sanity than 20 minutes of ranting, raving, and clawing through piles of paper.</p> <h2>3. Consolidate Your Loans and Other Payments</h2> <p>Consolidation is your best friend, especially when you're juggling multiple bills with different due dates and payment amounts. If you have multiple federal student loans, ask your provider about consolidating all your loans into a single loan. And if you have multiple credit cards, see if you qualify for a <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=article">0% APR balance transfer credit card</a>, and then combine your balances onto a single card. This reduces your chance of forgetting to pay a bill.</p> <h2>4. Use Banking Apps</h2> <p>A smartphone isn't only good for checking social media accounts, email, and playing games. It also provides a way to stay on top of your money and manage your finances anytime, anywhere. Just about every major bank has a mobile app that allows customers to deposit checks, pay bills, transfer money, and monitor their account balances. You may not always have access to a computer to check your account balances, but you'll most likely always have a smartphone in the palm of your hand.</p> <p>Having instant access has helped me make financial decisions in an instant, it's prevented me from buying something I wanted but couldn't afford (I look at my balances to keep myself in check), and it cuts down on all the traveling back and forth to the bank I used to do to deposit checks and other business &mdash; which in itself is a Godsend.</p> <h2>5. Consider Hiring a Financial Adviser</h2> <p>You don't need a lot of money to have a financial adviser. Whether you need help with retirement planning, paying down debt, or buying insurance, a financial adviser can point you in the right direction and help clean up your financial life. Your adviser will stick by your side year after year, occasionally following up to see how he can best serve you. If you're just starting out and don't know much about money, mistakes are inevitable. Advisers are knowledgeable in various areas of money management and can provide a step-by-step guide for improving your finances.</p> <h2>6. Look for a Better Checking and Savings Account</h2> <p>A student checking or savings account might have worked when you were in high school or college, but now that you're an adult, it's time to explore adult accounts.</p> <p>A regular savings account is an excellent place to house cash you need for emergencies, but don't expect to earn an impressive rate with a regular savings &mdash; you'd be lucky to earn more than 0.01%. If you're thinking long-term savings, or if you're looking for a better return on your money, you need an account with a higher yield, such as a <a href="http://www.wisebread.com/5-best-online-savings-accounts">high-yield online savings account</a>, a certificate of deposit, or a money market account.</p> <p>Additionally, don't settle for a checking account that offers nothing in return. Some people don't think of their checking account as a tool for growing their money. But for anyone who maintains a large balance in their checking, it only makes sense to find a bank that offers interest checking. (See also: <a href="http://www.wisebread.com/5-best-online-checking-accounts?ref=seealso">Best Online Checking Accounts</a>)</p> <p><em>How do you do money grown-up style?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/how-to-do-money-like-a-grown-up">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-every-woman-can-take-control-of-her-finances">How Every Woman Can Take Control of Her Finances</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-biggest-financial-decisions-in-your-20s">The 6 Biggest Financial Decisions in Your 20s</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-personal-finance-milestones-every-20-and-30-year-old-should-hit">7 Personal Finance Milestones Every 20 and 30 Year Old Should Hit</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-before-moving-out-on-your-own">5 Money Moves to Make Before Moving Out on Your Own</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-self-employed-persons-guide-to-getting-credit">The Self-Employed Person&#039;s Guide to Getting Credit</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance adulthood autopay bills checking account financial advisers loans millennials money matters savings Fri, 13 May 2016 10:30:05 +0000 Mikey Rox 1708166 at http://www.wisebread.com How to Find the Right Accountant for You http://www.wisebread.com/how-to-find-the-right-accountant-for-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-find-the-right-accountant-for-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/croppediStock_000016565687Small.jpg" alt="accountant and couple" title="accountant and couple" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Finding the right accountant can make a world of difference when it comes to managing your money, but it can be easier said than done. There are a few ways that you can make the process go much easier, though.</p> <h3>Why Do You Need an Accountant?</h3> <p>The first question you need to think about when looking for an accountant is why do you need help with your finances &mdash; and what sort of help do you need? Not every individual really needs an accountant. There are a number of services out there that can help you with your taxes, if that's your only concern. An accountant usually works with individuals or organizations with slightly more complicated finances, ranging from managing a business' finances to helping an individual keep investments straight. (See also: <a href="http://www.wisebread.com/6-mistakes-to-avoid-with-a-financial-adviser" title="6 Mistakes to Avoid With a Financial Adviser">6 Mistakes to Avoid With a Financial Adviser</a>)</p> <p>You could just start calling accountants based on who is closest to you, but most accountants have specialties. You're not going to get exactly the help you need from just any accountant.</p> <p>When we talk about accountants, we can actually be referring to one of several different kinds of financial expert. There are quite a few different designations for accountants, from the common &quot;certified public accountant&quot; to a certified management accountant or an accredited <a href="http://www.wisebread.com/small-business/how-to-choose-an-accountant-for-your-small-business" title="How to Choose an Accountant for Your Small Business">business accountant</a>. It's most likely that you're looking for a CPA if you're generally looking for an accountant in the U.S. (other designations are used in other countries). A CPA will help set up the books for a new business, prepare tax returns, and handle a wide variety of other accounting tasks &mdash; unless you have a sizable business and need specialized help with your accounting, a CPA is usually the place to start.</p> <p>It's still important to narrow the field down even further, though. Many CPAs work with specific types of clients. For instance, the CPA who helps me with my business focuses on small businesses that don't need much in the way of payroll but do need advice on business operations from time to time. He works with a lot of freelancers and small business owners, though he does take on other clients. Ask right off the bat about whether an accountant you're considering working with handles your type of situation &mdash; most are very clear about what types of clients they want to work with. You should also ask about specifics like price and who will actually do any work, like <a href="http://www.wisebread.com/how-to-file-your-first-tax-return" title="How to File Your First Tax Return">preparing a tax return</a>.</p> <p>Make a note of what sort of help you need. The price you'll pay for an accountant's help can definitely depend on exactly what you need done. Most CPAs work on an hourly basis, often starting at a price of $150 and going up from there. But for common situations, like needing a tax return prepared, you can expect prices to start closer to $90 &mdash; provided you are employed and don't have particularly complicated finances.</p> <h3>It's All About the Referral</h3> <p>Because an accountant may wind up knowing every last thing about your financial situation, it's important to find someone you're personally comfortable working with. Starting with a referral is often the best way to do so. Ask around to find out whom your peers use and whether they recommend their current accountants. If you're having a hard time getting a recommendation, many review-based sites, such as <a href="http://yelp.com">Yelp</a>, do list accountants and other financial professionals. However, you'll want to dig a little deeper than just a review online &mdash; while it's fine for choosing a restaurant for dinner, you'll want more information when you're putting all your financial information in someone's hands.</p> <p>If you operate a business, it may be worth going to your professional associations (such as the local Chamber of Commerce, if you are a member) and getting referrals there. You can get good leads on reliable accountants quickly.</p> <p>Of course, you'll do the necessary due diligence to make sure that you're working with a reliable accountant. But because of that &quot;certified&quot; part of the job title, it's relatively easy to make sure that anyone you choose to work with has the necessary credentials to handle any accounting quandary you may face. Individual state boards are responsible for issuing certifications, and most will now allow you to verify an accountant's credentials online. A quick online search can also confirm that you've chosen the right person to work with. Many CPAs (including the one I work with) now have websites, Twitter accounts, and even blogs to help you make the right decisions.</p> <h3>An Ongoing Relationship</h3> <p>Even if you only visit your accountant for a yearly tax planning session, it's important to have an ongoing relationship. The best accountants will go out of their way to update you on new legislation, as well as anything else that might impact your finances. You may not anticipate needing help, but already having a great working relationship with your accountant can put you ahead of the game in the event of an <a href="http://www.wisebread.com/how-to-survive-a-tax-audit" title="How to Survive a Tax Audit">audit</a> or other financial situation.</p> <p>Depending on how you expect your finances to change in the future, you may want to ask about some of the options that an accountant might offer before making your final decision. If you know you need to start planning for retirement or a child's education, you should ask about what sort of financial consulting or planning services a particular CPA offers.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/thursday-bram">Thursday Bram</a> of <a href="http://www.wisebread.com/how-to-find-the-right-accountant-for-you">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">11 Secrets You Need to Tell Your Financial Adviser</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-every-woman-can-take-control-of-her-finances">How Every Woman Can Take Control of Her Finances</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/not-the-sort-of-person-who">Not the sort of person who ...</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-mistakes-to-avoid-with-a-financial-adviser">6 Mistakes to Avoid With a Financial Adviser</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-do-money-like-a-grown-up">How to Do Money Like a Grown-Up</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance accountant accounting financial advice financial advisers Tue, 07 Feb 2012 11:00:34 +0000 Thursday Bram 874763 at http://www.wisebread.com 6 Mistakes to Avoid With a Financial Adviser http://www.wisebread.com/6-mistakes-to-avoid-with-a-financial-adviser <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-mistakes-to-avoid-with-a-financial-adviser" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000002437760Small.jpg" alt="Woman meeting with financial adviser" title="Woman meeting with financial adviser" class="imagecache imagecache-250w" width="250" height="166" /></a> </div> </div> </div> <p>Financial advisers can be an important ally for even the most savvy investors, because a second opinion can sometimes be the difference between comfortable retirement and eating lots of ramen in the later years. Yet, many people shy away from a relationship with a professional because of all the horror stories others have. Below are six common mistakes that people make with financial advisers. Don't make the same mistakes, and hiring a financial adviser could become one of the best decisions you've ever made. (See also: <a href="http://www.wisebread.com/do-a-background-check-before-hiring-your-financial-advisor">Do a Background Check Before Hiring Your Financial Adviser</a>)</p> <h3>1. Sending Your Money Directly to a Financial Adviser</h3> <p>This is way too common. There should be a third party custodian that handles the money, which is typically a brokerage firm. (Note: You might also want to call the company and verify that they are really going to handle your money properly before you send them the first check.) Do not ever write a check with your financial adviser's name on it, unless you owe him money!</p> <h3>2. Not Asking Enough Questions</h3> <p>Most people don't ask nearly enough questions when they meet a potential financial adviser for the first time. How will the relationship work? How often should you meet? What is the first step? Do you have a list of references? Everything is on the table, and financial advisers should be happy to provide all the information you need.</p> <h3>3. Not Negotiating a Discount</h3> <p>Some charge a one-time fee, and others charge you a percentage of your assets to help you manage them. Either way, always try to get a discount. Usually, there is less room for negotiation for the advisers who charge a one-time fee and more for those who charge a percentage. On the latter, remember to ask how big your assets should be before you get additional discounts because typically, higher net worth clients can demand lower percentages. Before you make a commitment, you have the upper hand in the negotiation, so take advantage of it.</p> <h3>4. Not Knowing How Your Adviser Is Being Compensated</h3> <p>Conflicts of interest can mean that your adviser will steer you to certain investments that are good for someone other than yourself. Work with advisers who have the fewest conflicts of interest to make sure you are being treated fairly.</p> <h3>5. Not Starting Small</h3> <p>Many people will procrastinate with their decision, but once they decide to send their money to a new adviser, they pour everything over. As with any type of service, you really can't be 100% sure how everything will work until you start working with your adviser. Therefore, it's best to start slow, move only a portion of your money over at the beginning, and continue your evaluation until you are more comfortable with your relationship.</p> <h3>6. Not Using Common Sense to Critique Your Own Plan</h3> <p>Regular assessment is how you can make sure your plan will work. Take a step back periodically and <a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-financial-plan">reassess your entire plan</a> to see how the investments and strategy are working out. Inviting your friends to discuss your plan can help too, but just make sure you leave the actual numbers out of the conversation if you are uncomfortable sharing how much you already saved for retirement.</p> <p>Financial advisers can be your best buddies, or they can turn into nightmares with dire consequences. Don't make the mistakes listed, and don't blindly follow every suggestion your financial adviser makes. The good news is that as you practice being more careful and critical of your relationship, it will become second nature.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/david-ning">David Ning</a> of <a href="http://www.wisebread.com/6-mistakes-to-avoid-with-a-financial-adviser">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-dumb-places-you-re-leaving-your-money">6 Dumb Places You’re Leaving Your Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">11 Secrets You Need to Tell Your Financial Adviser</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/ow-do-you-deal-with-family-members-who-are-bad-at-managing-money">How Do You Deal With Family Members Who Are Bad At Managing Money?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-no-budgeting-required">How to Manage Your Money — No Budgeting Required</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-good-money-management-habits-you-already-have">5 Good Money Management Habits You Already Have</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance financial advisers investing mistakes money management Tue, 19 Apr 2011 13:33:35 +0000 David Ning 527273 at http://www.wisebread.com Personal Financial Advisors awaiting your call http://www.wisebread.com/personal-financial-advisors-awaiting-your-call <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/personal-financial-advisors-awaiting-your-call" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/advice.jpg" alt="Advice sign with two chairs" title="Advice to be Dispensed" class="imagecache imagecache-250w" width="225" height="300" /></a> </div> </div> </div> <p>Financial advice, you may have noticed, is everywhere (even here at <a href="/">www.wisebread.com</a>) from the bank teller who makes a referral to an in-house investment advisor…to a wealth manager who wants to dispense planning advice, manage your investment portfolio, and handle your family’s checkbook. You may not need to talk to someone who will set you up with the bank&#39;s proprietary mutual fund or can change your life <em>but</em> you’d like some personalized financial guidance. Where should you go and who should you ask for advice? </p> <p>Over the years, I’ve spoken with sundry persons who have been or claimed to have been worthy to give me financial advice or some guidance relating to the financial realm. Here are some of the names I’ve heard: </p> <ul> <li>Investment Advisor</li> </ul> <ul> <li>Investment Consultant</li> </ul> <ul> <li>Financial Planner</li> </ul> <ul> <li>Financial Consultant</li> </ul> <ul> <li>Personal Financial Advisor</li> </ul> <ul> <li>Wealth Manager</li> </ul> <ul> <li>Money Manager</li> </ul> <ul> <li>Asset Manager</li> </ul> <ul> <li>Portfolio Manager</li> </ul> <ul> <li>Personal Banker</li> </ul> <ul> <li>Relationship Banker</li> </ul> <ul> <li>Relationship Manager</li> </ul> <ul> <li>Stockbroker</li> </ul> <ul> <li>Insurance Agent </li> </ul> <ul> <li>Estate Planner</li> </ul> <ul> <li>Attorney</li> </ul> <ul> <li>Accountant</li> </ul> <ul> <li>Fiduciary</li> </ul> <p>with credentials that may include:</p> <ul> <li>Bachelor’s degree</li> </ul> <ul> <li>MBA</li> </ul> <ul> <li>specialized training in financial planning, financial management, insurance, investments, estate planning, and tax accounting</li> </ul> <ul> <li>professional designations and licenses earned by completing specialized training and passing an exam </li> </ul> <p>with designations and licenses such as:</p> <ul> <li>CPA (Certified Public Accountant) </li> </ul> <ul> <li>NAPFA (National Association of Personal Financial Advisors) Registered Financial Advisor </li> </ul> <ul> <li>CFP (Certified Financial Planner)</li> </ul> <ul> <li>ChFC (Chartered Financial Consultant)</li> </ul> <ul> <li>NASD (National Association of Securities Dealers) Registered Representative and Securities Industry Professionals </li> </ul> <ul> <li>Series 7, 63 licenses (sell and trade stock) </li> </ul> <ul> <li>Series 6 license (sell mutual funds)</li> </ul> <ul> <li>Licensed Agent, Life &amp; Health Insurance</li> </ul> <p>who receive compensation in many ways including:</p> <ul> <li>Commissions paid by you (e.g., the consumer pays a broker for a securities trade)</li> </ul> <ul> <li>Commissions received from a financial services provider (e.g., your insurance agent receives a commission from the insurance company for selling a life insurance policy to you) </li> </ul> <ul> <li>Hourly fee (e.g., you pay an hourly fee for advice on certain topics)</li> </ul> <ul> <li>Fee-for-defined service (e.g., you pay a flat fee for a financial plan)</li> </ul> <ul> <li>Salary plus bonus (e.g., your banker receives a regular salary plus bonus for making referrals)</li> </ul> <ul> <li>Percentage of assets (e.g., you pay 1% of assets being managed/invested by a financial pro)</li> </ul> <ul> <li>Referral fees</li> </ul> <ul> <li>A combination of all or some of the above</li> </ul> <p>More on my experiences with financial pros later but I wanted to let you know about a chance to pose questions to a financial advisor free of charge. The National Association of Personal Financial Advisors (a group of fee-only financial pros known as Registered Financial Advisors) is partnering with Kiplinger (which provides personal financial advice and economic forecasting to individuals and businesses). Together, they are presenting Kiplinger&#39;s Jump-Start Your Retirement Plan Days, dispensing custom advice for free rather than the usual $100-$250 per hour charge. </p> <p>Here’s how it works: starting now, you can email questions to <a href="mailto:jumpstart@kiplinger.com">jumpstart@kiplinger.com</a> for a response on the selected days. Or, you can save them until Friday, August 17 and Thursday, August 30, 2007, when you can call 888-919-2345 to speak with an advisor (9 a.m. to 6 p.m. Eastern Time USA). Before then, compile some basic information about your investments (e.g., mutual fund statements and 401(k) plan choices) and get your questions ready. </p> <p>If you need help wording your question, comment here and for more info, check out <a href="http://kiplinger.com/features/archives/2007/07/jumpstartpromo.html" target="_blank" title="http://kiplinger.com/features/archives/2007/07/jumpstartpromo.html">Kiplinger</a>.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/julie-rains">Julie Rains</a> of <a href="http://www.wisebread.com/personal-financial-advisors-awaiting-your-call">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-much-do-i-need-to-retire-how-much-can-i-spend">How much do I need to retire? How much can I spend?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/book-review-cash-rich-retirement">Book review: Cash-Rich Retirement</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/book-review-retire-on-less-than-you-think">Book review: Retire on Less Than You Think</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement">7 Things Financial Advisers Wish You Knew About Retirement</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser">11 Secrets You Need to Tell Your Financial Adviser</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Retirement financial advisers financial advisor financial advisors Kiplinger retirement planning Sat, 04 Aug 2007 03:26:19 +0000 Julie Rains 948 at http://www.wisebread.com