Oct 7, 2008 6:48 pm US/Pacific
Finding The Right Financial Planner For You
(CBS 5)
You might think only the wealthy hire financial planners, but anyone can benefit from investment advice. The key is finding the right financial planner for you.
"I think right now is one of the best times to get a financial planner. I think it will really feel better if you go talk to someone," said Bob Goldman of Bob Goldman Financial Planning.
But some people may wonder, why trust your money to a stranger?
"You probably shouldn't trust a stranger with your money. That's why if you're looking for a financial planner, it's really important to see quite a few of them," said Goldman.
Goldman said the most important question is how the financial planner gets paid. Planners who charge a sales commission earn money whether you do or not. Other planners charge a percentage based on the value of your account, but usually only take high net-worth investors.
The best option according to Goldman is to hire a certified financial planner that charges by the hour. You should get more objective advice because they have nothing to gain or lose.
"You want someone who's a fiduciary. Someone who is legally responsible for putting your interests ahead of their own," said Goldman.
Looking after your interests means being clear about the risks. And in a stock market that can swing hundreds of points in an hour, beware of big promises.
"No financial planner can or should guarantee results. We don't know what's going to happen to tomorrow. Even later this afternoon," said Goldman.
And just because you're paying a planner, don't put your finances on autopilot. An hourly planner sets goals and suggests investments, but you open the accounts and make the trades.
"It's your money. It's your life. It's really important. You don't need a Ph.D. in investing, but you need to know the basics," Goldman said.
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