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Money Girl
320 MG How Do You Find a Financial Advisor? (Part 2)
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At Midas, we're on a mission to redefine car care, where, get this, we talk to you like a real person helping you plan for today and down the road. Imagine that. We're driving forward with this in mind. We're out to Midas, but we're putting an end to BS. We're going to talk to you about what we're going to do in this plan, and what we're going to do in this plan, we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan, and what we're going to do in this plan. This is to find these advisors, tips to research their backgrounds, and how to prepare to meet with them for the first time. No matter if you're looking for a new financial advisor, a house cleaner, or a hairstylist, ask people you know for recommendations. There's no substitute for getting referrals from friends or family who will give you straight information, but what if you don't know many people, or your contacts have never used a financial advisor? Fortunately, there are some great websites that make it easy to find an advisor. I'm going to give you a lot of websites to reference in this podcast. Don't worry about writing them all down. You can find them in the show transcript on the Money Girl page at quickanddirtytips.com. The first type of advisor that we covered in part one is a Certified Financial Planner or CFP. Both sites are run by the CFP Board, which is a nonprofit organization that sets and enforces the standards for CFP certification. You can search for a CFP by zip code, city, or state. You can even narrow down the results by language and advisor speaks. His or her specialties such as divorce issues or debt management. The minimum amount of money you must have to invest and how the planner charges clients. Though being a CFP comes with instant credibility, never hire one without making sure his or her certification is up to date. Additionally, at let's make a plan.org, you can see if an advisor has been in disciplinary trouble with the CFP Board or declared bankruptcy in the past 10 years. We're choosing an advisor, interview several by asking questions about how they work and what they do to help clients. For instance, find out exactly how they're paid. An advisor could earn commissions on products you buy, such as an investment fund or life insurance. They might bill you an hourly rate, charge a flat rate, or receive a combination of these types of income. A growing number of planners are fee-only, which means that they don't earn commissions. They might charge a flat fee, such as $750 to analyze your situation and create a customized financial plan. A benefit of using a fee-only advisor is that they don't have an incentive to steer you toward a particular high-commissioned product. The National Association of Personal Financial Advisors at NAPFA.org, they have a database of fee-only advisors. These professionals might be a CFP, or they could hold other types of credible financial designations, such as Chartered Financial Consultant or Certified Public Accountant. Though, there's no rule that says you have to work with a planner in your area, having a face-to-face meeting with him or her is the best way to know how well you might work together. If you can't meet in person, consider meeting using a Skype video call. If you're looking for investment advice, a registered investment advisor or RIA has a fiduciary duty to act in your best interests, while a stockbroker does not. Though you can find an RIA in a variety of financial firms and institutions, a good place to search for one is advisorinfo.sec.gov. An RIA must disclose details about their services and fees by filing a form ADV with the Securities and Exchange Commission or their state securities agency, depending on the amount of assets they manage. Advisors are required to give you a copy of their form ADV before you hire them, so be wary of any who don't. But you can also request a copy from the SEC at that same site I gave you advisorinfo.sec.gov or from your state's regulator to review before meeting with an RIA. You can get your state's information at the North American Securities Administrators Association at nasaa.org. Cheers to fall at Whole Foods Market with sales through October 29th. But frozen pizzas are 50% off with prime, so stock up and be ready for game day. Hosting a cozy dinner? There's a sale on hearty no antibiotics ever beef-chuck roast and stew meat. Or be the best guest ever and bring a robust bottle of Bordeaux wine. Or specialty cheese like Humboldt Fog. Cheers to fall at Whole Foods Market must be 21 or older. Please drink responsibly. During congestion customers on this climbing, notice speeds lower than other customers and further reductions using greater than 1.2 terabytes per month due to data prioritization. If you've ever felt like the auto repair business is broken, you're not alone. Everybody's over it. From talking down to selling up to car-splaining mechanics, you're just done putting up with BS, bad service. At Midas, we're on a mission to redefine car care, where, get this, we talk to you like a real person, helping you plan for today and down the road. Imagine that. We're driving forward with this in mind. We're out to Midas, where we're putting an end to BS. Once you've investigated the registration and record of an RIA, make sure their firm is a member of the Securities Investor Protection Corporation, or SIPC. This organization provides customers up to $500,000 of coverage for cash and securities if your investment firm goes out of business or engages in fraud. But remember that the SIPC doesn't ensure against losses due to a decline in the market value of your investments. Use my same advice as choosing a financial planner, interview several RIA's by asking questions about how they work and what they do to help clients. Most RIA's charge a percentage of your total assets under management in the range of 1 to 4%. Once you begin to accumulate assets like cash, investments, and real estate, you need to have a plan for what will happen to them after your death. Since a big part of estate planning involves creating legal documents, it's best to work with an estate attorney. There are many websites that match consumers with attorneys, but a good place to start is nolow.com. You can search for the type of lawyer you need by zip code. It's really important to work with an attorney licensed in your state since laws vary widely depending on where you live. Let's say you've done all your due diligence and you're ready to meet with an advisor for the first time. Yes, you'll need to get organized. Ask what documents you should send the advisor or have on hand during your meeting. Some advisors may ask for tax returns, investment statements, or pay stubs, for instance. You should be prepared to answer questions about your ongoing expenses, current investments, and financial goals. If you don't know all the answers, that's okay because it's just part of the planning process. Take notes during the meeting and never be afraid to ask questions no matter how silly you think they might be. Don't get me wrong. You should never ignore your finances and turn everything over to an advisor. No matter who advises you, stay involved and be sure that you know the basics. When it comes to managing your money, you can do it yourself. In fact, I wrote an award-winning guide to personal finance called Money Girl Smart Moves to Grow Rich that shows you how to get the job done. However, many aspects of finance are complex and may require too much of your time to completely master. Using a financial advisor to enhance your own money management skills can save you time, help you make more money, and keep you disciplined about following a sound financial strategy. For more money tips and advice, there's lots going on on the Money Girl Facebook page, Google+, and Twitter. My Twitter handle is @LaraAtoms, L-A-U-R-A-A-A-D-A-M-S with NoSpace. As I mentioned, you'll find links to everything I've discussed in the show transcript on the Money Girl page at QuickenDirtyTips.com. Just look for episode number 320, called How Do You Find a Financial Advisor, Part 2. Also, we have a brand new, awesome redesign of the Quicken Dirty Tips website that I want you to check out. Just visit QuickenDirtyTips.com. I'm glad you're listening to Ching. That's all for now, courtesy of Money Girl, your guide to a richer life. Betterment LLC is an SEC registered investment advisor. Brokerage services are offered by Betterment Securities, an SEC registered broker dealer and member FINRA SIPC. Investments are not FDIC insured and have no bank guarantee, they may lose value. Running in securities involves risks, and there's always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and betterment charges and expenses. Not an offer, solicitation of an offer or advice to buy or sell securities in jurisdictions where Betterment and Betterment securities are not registered. Team Mobile 5G Internet keeps getting better, boost your connection to harder to reach places with Home Internet Plus and get internet right where you want it. With Wi-Fi that reaches the attic, I finally have a home office. Is it time to re-imagine your future? 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