What are you thankful for today?

In honor of the Thanksgiving holiday, let’s look at five reasons to be thankful you have a financial advisor:

5. You don’t have to spend your day clicking around at do-it-yourself stock trading sites, because your financial advisor has carefully created an investment plan tailored to your unique financial situation and future goals.

4. As others are retiring without any savings to speak of, your financial advisor has made sure you have a workable savings plan . . . and by following it, you know your retirement goals are within reach.

3. You can sleep at night knowing the estate plan your financial advisor helped create will safely pass your assets on to your family, reduce your estate’s tax liability, take care of your loved ones, keep your business running without you, and more.

2. While the average household’s debt is growing, yours is either rapidly dwindling or nonexistent, thanks to the financial plan your advisor developed for you to follow.

1. No matter what the economy is doing or what the national political landscape looks like, you know your financial advisor is on top of things and will guide you safely through any rough financial waters to come.

If you don’t already have a financial advisor, take the time now to search the All Financial Advisors database to find one in your area. And on behalf of everyone at All Financial Advisors, have a safe and happy Thanksgiving!  

Financial planning is not much different for military families than it is for civilians, but there are some areas where service members and their families should take care — particularly if they’re likely to be deployed.

Fortunately, there are some fantastic resources (and many knowledgeable financial advisors) available to help with the big three: Saving, debt reduction and building wealth over time.

The military handles estate planning and group life insurance exceedingly well. If there’s a chance you’ll be deployed, make sure you max out the service member group life insurance that’s available to you. It’s not expensive, and it will give you peace of mind while you’re away from home for an extended period of time.

You’ve probably heard of the emergency fund. Now is the time to create one for your family. You should have at least six months’ expenses saved, but if you’re going to be deployed, be as aggressive as possible with your savings.

Keep a secure file with all your financial information in it, including account numbers, monthly bills, insurance policies, etc., and make sure your spouse knows where it is in case you’re deployed.

There are some fantastic financial resources available to you as a member of the military, and we encourage you to look into them. SaveandInvest.org is a free project of the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation; 50% of the site is solely for service members and their families. You can go there for free, unbiased information and get answers to your questions about saving and investing.

MilitarySaves.org is another solid resource. It, too, is non-profit; it’s operated by the Consumer Federation of America and sponsored by the FINRA Investor Education Foundation. MilitarySaves.org is dedicated to helping you save, reduce debt and build wealth over time. The site has an impressive list of resources to help you with financial planning.

If you’re not comfortable handling your finances alone, if you don’t have time to take on financial planning, or if you’d just like some additional guidance, look through the All Financial Advisors database to find a financial advisor who’s experienced in working with military families.  You can also read our blog post about questions to ask when evaluating financial advisors and read through the All Financial Advisors FAQ to get a better feel for what financial advisors do and how to choose a financial advisor.

And finally, thank you for your service to our country.

What Do Women Want from Financial Advisors? 
(and is it really that different from what men want?)

Earlier this month, Ameriprise Financial® released the results of its New Retirement Mindscape II study examining gender differences in attitudes toward, and planning for, retirement. Of particular interest to All Financial Advisors: What women want in their financial advisors.

The study found that 46% of women have sought retirement advice from a financial advisor; only 38% of men have. And the more time their financial advisors take to educate them, the happier women are: 63% say that is a highly important attribute in a financial advisor, while only 52% of men say the same.

Even more women — 69% — want a financial advisor who “provides a knowledgeable point of view,” and 58% of women are looking for financial advisors who will coach them on reaching their goals for retirement. Finally, 55% of women want a financial advisor to tailor financial guidance specifically for them.

The portion of the Ameriprise Financial study dealing with attitudes toward financial planners seems to clearly indicate women want to work with comprehensive financial advisors — just like those you can find here at All Financial Advisors. A comprehensive financial advisor will typically take time to educate clients on financial matters pertaining to them, coach them on defining their retirement goals and on following a financial plan, and provide a customized plan of action.

How about you? What are you looking for in a financial advisor? It’s the perfect time of year to think about your financial goals — and to find the right financial planner for you! Start today. Find a financial advisor in your area and get ready to start the new year off right!

10 Questions to Ask When Considering a Financial Advisor

So you’ve decided to hire a financial advisor to help you define and meet your financial goals. Now what? How do you find the right advisor, and how do you make sure you’re entrusting your finances to someone competent and ethical?

As with any major life decision, get all the facts first. Meet with several different financial advisors, and ask questions to see who’s the best fit. There should be no charge for this getting-to-know-you appointment — and if there is, that’s a clear indication to move on! Use the following questions as a starting point, and tailor them to your own unique situation.

1. What is your background? Just as you wouldn’t hire someone to watch your kids without checking into their background, don’t hire a financial advisor unless you know about his or her past. Has the advisor ever been subject to disciplinary action? Listen to what he or she has to say, but do your homework, too. You can go to the Financial Industry Regulatory Authority (FINRA) BrokerCheck, a handy free tool that will give you background information on any current or former FINRA-registered brokerage firm or broker. The U.S. Securities and Exchange Commission (SEC) Investment Adviser Search is also free and provides a wealth of information as well.
2. How much experience do you have? You want to know your financial advisor’s training, experience and area of specialization fit your specific needs. How long has the advisor been practicing? What is the scope of his or her practice? Get as detailed as you need to in order to know whether the financial advisor’s experience meets your requirements.
3. What is your investment/financial planning philosophy? If the answer to this question doesn’t match your own philosophy, if it’s too risky or not risky enough, or if it just plain doesn’t make sense to you, keep looking.
4. What are your credentials? Check out the various credentials and designations available to financial planners, and know going in which ones you’d prefer your financial planner to have. Read our FAQ topic “What Professional Certifications are Available for RIAs?” to get a thorough understanding of this topic.
5. How do you get paid? We’ve covered the significance of fee-only advisors in our blog post, “Should You Choose a Fee-Only or Fee-Based Financial Advisor?” Ideally, that’s your financial planner’s fee structure as well. But even if you’re comfortable with your financial advisor working on a commission basis, find out all the facts. Is he or she affiliated in any way (especially in terms of compensation) with any of the products, services or companies he or she recommends to clients? Does the advisor receive any gifts or incentives from third parties? These things don’t necessarily mean the advisor will recommend products or services you don’t need, but they can indicate a conflict of interest — the advisor’s vs. yours.
6. Are you a fiduciary? A fiduciary has sworn an oath to act in his or her clients’ best interests. When it comes to your money, you definitely want someone who must look after your best interests at all times!
7. Who is your typical client? You don’t want names here, you want a profile. If you’re a single, professional woman in her early thirties with the goal of paying off debt and buying a house in the next five years, an advisor whose clients are all wealthy Baby Boomers may not be the best fit for you.
8. What exactly will you do for me? Have the financial advisor explain precisely what he or she envisions to help you meet your financial goals. Then get it in writing, along with a clear explanation of his or her fee structure. If an advisor isn’t willing to put it in writing, there’s a reason — and that’s a good enough reason for you to move on to the next candidate.
9. Do you have references? Ask to speak to some of the advisor’s clients whose situations, finances and/or goals are similar to yours. See what they have to say, then ask them if they know other clients of the advisor. The goal is to talk to clients the advisor hasn’t spoon-fed you and find out how they feel about the service the financial advisor provides.
10. How do you keep me updated on my investments? If you want a financial planner who is accessible via e-mail and phone, make that clear. If you want your financial advisor to check in with you monthly or quarterly to talk about your portfolio and your plans, speak up about that, too. Find an advisor who provides the level of communication you need to feel comfortable.

Again, these questions aren’t the be-all and end-all of choosing a financial advisor, but taken as a whole, they should give you a picture of the person you’re talking to. There are no guarantees, but if you do your due diligence in vetting anyone who might end up working with your hard-earned money, you’ll likely sleep better at night.

If you’re retired with little or no savings, mounting debts, and no financial advisor, you’re not alone.

According to the CESI Debt Solutions survey of over 200 retirees, the results of which were released yesterday, almost 40% of retired Americans have added to their credit-card debt since retiring. What’s more, they aren’t worried about paying it back before they die.

But even more sobering is the survey’s finding that over 50% of respondents have saved less than $50,000 (with many reporting that they have nothing in savings). Remember, these are retired folks!

CESI Executive Vice President Neil Ellington stated to CNBC that retirees who are accumulating debt likely feel like it’s too late to do anything about it, so they decide not to even try to get their credit cards paid off. He also observed that many retirees feel like they’ve earned some of the finer things in life, even if they have to put those things (travel, for instance) on credit cards. And finally, he explained that retirees who are in debt don’t know what to do about it, and they’re ashamed to ask for help.

All Financial Advisors thinks there’s a simple solution for those who are retired and in debt: Talk to a financial advisor. Comprehensive financial advisors are trained to help people reduce debt and build savings. And judging by the results of the CESI survey, that’s exactly what retirees need to do.

If you’re in this boat — retired, in debt, nothing saved and no financial advisor — there’s no need to be ashamed. Fee-only financial advisors know it’s not easy to bare your financial soul, but that’s what they’re there for. Only when your financial advisor knows everything about your financial life, including your debt, savings, insurance, estate plan, assets and more, can he or she come up with a plan you can use to actually pay off your debt, build your savings, and live out your golden years free of financial worry.

Has growing debt and dwindling savings made your retirement difficult? You can take the first steps toward changing your situation right now. Search for trustworthy financial advisors in your area. Interview two or three (if you’re not sure what questions to ask, check out our FAQs). See if one of the financial advisors you interview feels right to you, and hire that one. You can live out the rest of your life without the burden of financial stress. Let the financial advisors here at All Financial Advisors help.

Last week, we talked about how financial advisors can help people just starting out in their professional lives. Today, we’ll talk about a much different life stage: Divorce.

No one wants to think about life taking unexpected turns. Sadly, however, changes like divorce are common — and invariably bring financial upheaval. At a time of such intense emotional distress, dealing with the loss of the financial security you’ve always counted on may seem like an impossible task.

When your life has been turned upside-down by divorce, a financial advisor experienced in helping clients adjust their financial plans after divorce can be a source of comfort and encouragement. Here are a few ways financial advisors can make the turmoil of divorce a little easier to bear:

• Help you understand the financial aspect of all the legal documents. If you know what the divorce papers are saying about finances, you can make better informed decisions.

• Clarify your financial situation. A financial advisor skilled in working with divorce matters will be able to help you sort through your finances, separate what may have been a lifetime of his-and-hers financial matters into just his or just hers, and get a clear picture you and your attorney can refer to, if needed, to reach a fair and equitable settlement.

• Help you focus on your finances. It’s easy to get bogged down in the emotions you’re feeling, but during a divorce, you’ll need to keep your mind at least partially on financial matters as well. Financial advisors can help you do just that.

• Get you back on track. Your budget after divorce will be very different from the budget you followed while married. A financial advisor experienced in divorce will help you create a budget for your new life.

Nothing will take away the pain of divorce, but financial advisors can help relieve some of the associated pressures. If your life has suddenly become unstable due to divorce, now is the time to take action.

Search for financial advisors near you. Interview two or three of them, and see which one you’re comfortable with (ideally, it’s a financial advisor who can focus on helping you rebuild your financial life). Then get started on your new financial plan.

It’s not easy, but with the help of a good financial advisor, you can be financially comfortable — with a solid plan for reaching your goals — once again.  

It appears girls aren’t the only ones that just want to have fun.  In fact, according to TD Ameritrade Holding Corporation’s annual New Year’s Resolutions Survey, released late last week, 67% of Americans say their New Year’s resolutions for 2011 are to “have more fun” and to “relax/reduce stress.” Coming in at a close third was “save more money.”

Two years ago, when the economy was spiraling downward at an alarming rate, the majority of survey respondents resolved to “save more money” in the New Year; that resolution came in ahead of “spend more time with family” and “relax/reduce stress.”

Even more telling: 27% of those surveyed this year said they’re less likely to make New Year’s resolutions about their finances in 2011 than they were in 2010. 50% of survey respondents said their health and wellbeing are more important this year; another 39% said they’re doing better financially this year than they were in years past.

The survey reflects a more optimistic attitude toward the economy, but in a statement about the results, Stuart Rubinstein, managing director, investment products, TD Ameritrade cautioned against forgetting the importance of having a long-term financial plan.

AllFinancialAdvisors.com wholeheartedly agrees with Mr. Rubinstein’s advice.

Having a more relaxed, positive attitude toward finances is a great way to start 2011. And one way to cultivate that attitude is through working with a capable, experienced financial advisor. Which of the following two scenarios gives you more time and energy to have fun and relax in the New Year:

• You decide to tackle your financial goals head-on, so you read up on investing, retirement planning and estate planning, revamp your budget, and begin putting money into the stock market.
• You decide to tackle your financial goals head-on, so you interview a few financial advisors, choose the one you feel comfortable working with, and meet with him or her. When your financial advisor presents you with a comprehensive financial plan, complete with saving and investment advice, you simply follow the roadmap that’s been laid out for you.

 
We think most people would choose option 2.  Financial advisors have the skills and expertise to determine the most effective course of action for taking control of your finances.

In contrast, learning about financial planning, coming up with your own plan, and then staying on top of your portfolio as you engage in trial-and-error financial management doesn’t sound fun or relaxing in the least.

So what about you?  What are your resolutions, financial or otherwise, in 2011?  Do you agree with the results of the TD Ameritrade survey, or would your top resolutions be different?

And finally, have you considered working with a financial advisor in the New Year?  Leave a comment below and let us know!

Financial Life Stages: Just Starting Out

We’ve discussed how financial advisors can help anyone, regardless of income. Now let’s take a look at why you should consider hiring a financial advisor even if you’re just starting out in your financial life.

Maybe you just graduated from college; maybe you’re in your first real job in your chosen career field; maybe you’re newly married. In any case, you’re beginning your financial life - and maybe you’ve never thought about a financial advisor. But could you use the help of a professional financial counselor?

Absolutely. Whether you’re learning to live independently for the first time, considering participating in your employer’s retirement plan or jointly trying to manage two incomes, a financial advisor can help you avoid pitfalls and handle your finances the right way from the very beginning.

Financial advisors don’t just give investment advice or manage the portfolios of the very wealthy. They can also help you establish a budget, determine how to maximize your employee benefits, help you define your financial goals (and recommend savings and investing plans to meet those goals), and even give you expert guidance on setting up life insurance and other estate planning basics.

If you’re young and considering hiring a financial advisor, you have a golden opportunity to get your finances in order right from the get-go. In fact, by taking the time now to evaluate financial advisors and focus on your financial future, you’re setting yourself up for financial security later in life. As we noted in our post on the ING Retirement Research Institute survey, a combined 79% of Americans with financial advisors give themselves grades of “A” and “B” when asked how prepared they are for retirement. Those aren’t insignificant numbers, and they indicate that working with a financial professional can help you feel confident about the future.

Right now is the perfect time to get started, no matter where you are in life. Search the independent All Financial Advisors directory now to find financial advisors in your area. Choose two or three to talk with before you make your decision: Get a feel for whether you could use their services and see which one might be a good fit for you. We applaud you for taking control of your finances early in life!

How Many Americans Utilize Financial Advisors?  Only 25%…

On Friday, the ING Retirement Research Institute released results of a survey that questioned 1,000+ American workers about their retirement plans.

The survey’s findings reveal a whopping 76% of Americans participating in their employers’ retirement plans don’t have financial advisors.

And nearly as many — 73% — have no comprehensive financial plan for retirement (…perhaps because they’re not working with financial advisors…  hint hint).

At the same time, the ING survey found that 52% of people with financial advisors, when asked how they would grade the job they’re doing in preparing for retirement, gave themselves a “B,” while 27% of people working with financial advisors gave themselves an “A.”

Based on the results of the ING survey, it certainly appears that working with a financial advisor helps people feel more confident about their retirement plans and their financial future — and with good reason.

Financial advisors like those listed here on AllFinancialAdvisors.com have the knowledge and experience to help the rest of us manage and grow our money.  If more consumers knew exactly what financial advisors do, how they get paid, and how to choose a financial planner, we might see much higher percentages of Americans working with financial advisors.

That’s why AllFinancialAdvisors.com provides an extensive FAQ section, along with blog posts like this one focused on helping readers feel confident in hiring and working with financial advisors.  We want you to have access to the information you need to find the financial planner that’s right for you.

We firmly believe working with a financial advisor can help you reach your goals and have the financial future you dream of. Why not get started now?

The Time to Act is Now!  Search the AllFinancialAdvisors.com directory, fill out the simple, confidential, no-obligation form, and see what professional financial advice can do for you.

We hopes this helps!

Fiduciary: A Fancy Word For Trustworthy

Webster’s defines fiduciary as “of, relating to, or involving a confidence or trust: as held or founded in trust or confidence; holding in trust.” The word trust appears three times in that twenty-word definition, telling us it all boils down to . . . well, trust.

Fiduciary is a crucial word to remember when you’re evaluating financial advisors.  A fiduciary is bound by law to act in your best interests at all times, even when your best interests are in conflict with the fiduciary’s financial interests.

So what does that have to do with financial advisors?  Plenty.  Never assume a financial advisor is a fiduciary.  In fact, unless your financial advisor is an attorney, a certified public accountant (CPA) or a registered investment advisor (RIA), chances are, he or she is not a fiduciary.  Only lawyers, CPAs and RIAs are automatically fiduciaries.

And why is that important? Imagine a financial advisor who gets a commission for convincing you to invest in certain funds, insurance policies or other financial products. Do you think that advisor will recommend what’s best for you 100% of the time, or will you sometimes be steered in the direction of those financial products that result in a tidy fee for the advisor?

A fiduciary, on the other hand, must disclose in writing any actual and potential conflicts of interest. Fiduciaries cannot receive any compensation from any third party that is contingent upon your purchase of any financial product. They are prohibited from being compensated for referring you to any other professional. They must thoroughly disclose exactly how they are compensated. And they must adhere to a professional Code of Ethics.

You can certainly choose to work with a financial advisor who has not taken the fiduciary oath. But if you want to be sure you can trust the person giving you financial advice, choose a fiduciary.