Ben Stein's Top Ten Tips for Selecting a Retirement Planning Advisor.To download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. high-resolution, print-ready JPEG JPEG in full Joint Photographic Experts Group Standard computer file format for storing graphic images in a compressed form for general use. JPEG images are compressed using a mathematical algorithm. images, click on the thumbnail A miniature representation of a page or image that is used to identify a file by its contents. Clicking the thumbnail opens the file. Thumbnails are an option in file managers, such as Windows Explorer, and they are found in photo editing and graphics program to quickly browse multiple image above. WARNING: these images are very large (800K+) Click here for caption News Editors/Assignment Desks MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4560311 WASHINGTON--(BUSINESS WIRE)--Jan. 29, 2004 National Retirement Planning Retirement financial planning refers to a collection of systems, methods, and processes which, in their aggregate, support a family unit's (client's) desire to achieve a state of financial independence, such that the need to be gainfully employed is optional. Coalition Urges All Americans to Make 2004 the Year to Develop a Plan To Retire On Your Terms In his role as honorary chairperson chairperson Chairman The head of an academic department. See 'Chair.', Cf Chief. of the National Retirement Planning Coalition (NRPC NRPC Nashua Regional Planning Commission NRPC Notes Remote Procedure Call (Lotus Notes Domino network protocol) NRPC National Railroad Passenger Corporation NRPC National Retirement Planning Coalition NRPC Naval Reserve Personnel Center ), Ben Stein Benjamin Jeremy Stein (born November 25, 1944) is an American writer and commentator, Emmy Award-winning actor, comedian, and game show host. He was also formerly a lawyer, law professor, and White House speechwriter. He is the son of noted economist and writer Herbert Stein. , noted author, actor, comedian, lawyer, and economist, is sharing his insight on how to ensure all Americans have the resources necessary to retire on their terms. Recognizing that retirement planning can be a complex process that often requires professional advice and guidance, Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. has outlined ten things people should consider when seeking a qualified financial/retirement advisor. "Americans more than ever are beginning to understand the need to take personal responsibility for their financial futures financial futures Obligations to buy or sell particular positions in financial instruments. The features of financial futures are identical to those of any futures contract except that the asset for delivery is of a financial nature. , but they often don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. where to start," Stein said. "Like a deer deer, ruminant mammal of the family Cervidae, found in most parts of the world except Australia. Antlers, solid bony outgrowths of the skull, develop in the males of most species and are shed and renewed annually. caught in the headlights, they don't know where to turn and quickly become overwhelmed o·ver·whelm tr.v. o·ver·whelmed, o·ver·whelm·ing, o·ver·whelms 1. To surge over and submerge; engulf: waves overwhelming the rocky shoreline. 2. a. with what seems like a frightening process. "Over the course of my own career -- which has taken several different paths -- I've relied heavily on professional advisors for everything from contract negotiation to financial and retirement planning, and I'm here to say that there is plenty of good help available for the asking Adv. 1. for the asking - on the occasion of a request; "advice was free for the asking" on request ," Stein continued. "There are literally tens of thousands of qualified and experienced professionals out there who can help you create a solid retirement plan to ensure you'll have the retirement income to support your envisioned retirement lifestyle." The ten tips Stein suggests you consider when choosing a retirement planning advisor are:
1. Set Retirement Goals -- Before you can select the right
retirement planning advisor, it is important to have some
understanding of your retirement goals and objectives. Think about
when you hope to retire, your current assets and income, and how
you plan on spending your retirement years. An advisor can provide
additional insight and guidance to help you set goals, but it is
helpful that you have at least a basic idea of your needs before
the first meeting. In addition, knowing your retirement goals will
help narrow down the playing field of potential advisors.
2. Talk to People You Trust -- A reference from someone you trust
has always been the best way to find qualified help. Talk to
family, friends or associates who can point you to someone who has
helped them. Leverage existing relationships with financial
professionals who are qualified to provide retirement planning
services or can direct you to the appropriate person. These
individuals may include a banker, life insurance agent, investment
broker, accountant, or estate-planning attorney.
3. Leverage Online Resources -- In addition to
www.RetireOnYourTerms.org, most credible financial services
companies offer a wealth of valuable online resources that will
help you find a qualified retirement planner in your area. Be
prudent, however. Some of these sites are better than others.
4. Ask Questions -- Once you have an advisor in mind, seek to
understand exactly what services he or she provides and how much
it will cost. Prepare a list of questions in advance, based on
feedback from people you respect who have had successful
retirements. Questions may include: How long have you been
practicing in this area? How do you operate? Are you licensed to
sell financial products? What is your investment style
(conservative, moderate, high risk)? Can you provide verifiable
information about your track record?
You should also make sure you understand and are comfortable with
the process the advisor uses in making recommendations. Questions
to ask include: Do you use real-time software systems and rely on
several sources of financial information? Will you develop a
"needs analysis" as part of the process?
5. Get References and Credentials -- Be sure to ask for
credentials and talk with many of his or her "satisfied clients."
Professional qualifications and designations to look for include:
Certified Financial Planner (CFP), Chartered Financial Consultants
(ChFC) and Registered Financial Consultant (RFC). You don't want a
rookie playing Monopoly with your retirement income. If the
advisor is unwilling or unable to provide this information when
asked, don't pass "Go" and don't collect $200 -- find someone
else. Don't worry about hurting his feelings.
6. Make Sure They're Listening -- Does the advisor really listen
to you, or just methodically fill out forms? A good advisor should
make ample time for discussion, listen carefully and respect your
opinions. Remember: This person works for you, and this
relationship is as important as the relationships you have with
your doctor and lawyer. If the advisor is not listening, get out
of there -- fast.
7. Understand How Your Advisor Gets Paid -- Understanding how your
advisor makes his money should be part of your up-front
discussion. Some advisors charge for their time, generally on an
hourly basis. Others work on a commission based on investments you
make (e.g., stocks, bonds, mutual funds), financial instruments
you purchase (e.g., life, disability or long-term care insurance,
variable or fixed annuities), or through service fees (e.g.,
certificates of deposit). You will also want to compare fees.
There is wide diversity in the fees advisors charge, and often
times the most expensive advisor isn't the best, while an
inexpensive advisor can be very effective. Make sure you get what
you pay for.
8. Do You Get It? -- How can you trust someone you can't
understand? Let's face it; financial matters can be very
complicated. Therefore, it is critical that your advisor takes the
time and effort to explain complex financial jargon in clear
terms. Don't be impressed by someone who only uses big words and
phrases. If your advisor can't easily explain financial terms in
language that the average person can understand, you have to ask
yourself if he really "gets it" himself. Also, the excessive use
of fancy language can be a smokescreen for someone who is not
playing fair.
9. Find Out Who Else They Represent -- If you're in your 40s and
just beginning the planning process, advisors who specialize in
serving people immediately approaching retirement may not be the
best bet for you. Likewise, if they typically counsel clients with
extensive assets and large incomes, chances are that they will
have less time and attention for a client with more modest
resources. Your goal should be to find an advisor who represents
people like you.
10. Go With Your Gut -- Finally, your gut-level reaction to an
advisor may be the most important consideration. Make sure you get
along well and feel comfortable with the person. He doesn't have
to be your new best friend, but if he's arrogant, rude, careless,
or annoying, chances are he'll show the same level of respect to
your money. Bottom line -- if your gut tells you this person isn't
right for you, head for the door.
Once you have selected your advisor, it is important to meet with him or her at least once per year to evaluate your investment and savings plans, and make any necessary adjustments. More information about retirement planning can be found at www.RetireOnYourTerms.org. About The NRPC The National Retirement Planning Coalition brings together leading financial industry and advocacy organizations for the purpose of educating consumers and financial industry professionals on the issues surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. retirement planning. NRPC members include the Actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin Foundation, the American Savings Education Council (ASEC ASEC American Savings Education Council ASEC Authorized Sun Education Center (Sun Microsystems) ), the International Foundation for Retirement Education (InFRE), the National Alliance for Caregiving (NAC See network access control. ), the National Association for Variable Annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. (NAVA NAVA National Association for the Visual Arts NAVA National Association for Variable Annuities NAVA Navajo National Monument (US National Park Service) NAVA North American Vexillological Association ), the National Preretirement Education Association (NPEA NPEA National Pony Express Association NPEA Northwest Polygraph Examiners Association ), and the Retirement Solutions Foundation. MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4560311 |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion