William Penn Life, 2003 (38. évfolyam, 1-12. szám)

2003-11-01 / 11. szám

_____________________[ Moneywi$e _____ Choosing the right financial planner from the U.S. Securities and Exchange Commission A financial planner typically pre­pares financial plans for his or her clients. The kinds of services financial planners offer can vary widely. Some planners assess every aspect of your financial life-including savings, investments, insurance, taxes, retire­ment, and estate planning-and help you develop a detailed strategy or financial plan for meeting all your financial goals. Other professionals call themselves financial planners, but they may only be able to recom­mend that you invest in a narrow range of products and sometimes products that aren't securities. When hiring a financial planner, you should know exactly what services you need, what services the planner can deliver and any limita­tions on what he or she can recom­mend. In addition, you should understand what services you're paying for, how much those services cost and how the planner gets paid. Financial planners charge for their services in different ways: some charge either a fixed fee or an hourly fee for the time it takes to develop a financial plan, but don't sell invest­ment products; some are paid by Money Links Check out the following websites for more information about financial planners and how to select the right one for you. 3 www.sec.gov The U.S. Securities and Exchange Commission O www.nasd.com The National Association of Securities Dealers. O www.cfp-board.org The Certified Financial Planners Board of Standards. commissions on the products they sell; and others use a combination of fees and commissions. Financial planners may come from many different educational and professional backgrounds. If you're considering using a financial plan­ner, be sure to ask about their back­ground. If they have a credential, ask them what it means and what they had to do to earn it. Some financial planners have credentials like CFP (Certified Finan­cial Planner) or CFA (Chartered Financial Analyst). Find out what organization issued the credential, and then contact the organization to verify whether the professional you're considering did, in fact, earn the credential and whether the profes­sional remains in good standing with the organization. For a helpful list of various financial industry credentials (including the name of the issuing organization and any education or experience required to attain the credential), please read "Understand­ing Investment Professional Designa­tions," published by the National Association of Securities Dealers (NASD). If the professional you're consider­ing claims to be a CFP, visit the website of the Certified Financial Planner Board of Standards. The Board is an independent regulatory organization that licenses financial planners as CFPs. Check to see if the professional is licensed as a CFP and whether his or her license has been suspended or revoked by the Board. You can also call the Board at (888) 237-6275 to obtain additional disci­plinary information about the profes­sional. The Certified Financial Planner Board of Standards also has bro­chures-" What You Should Know About Financial Planning" and "10 Questions to Ask When Choosing a Financial Planner"—that will help you identify a financial planner who's right for you. Financial planners who give investment advice to their clients must register with the SEC or the appropriate state securities regulator. For more information about invest­ment advisers, read "Investment Advisers: What You Need to Know Before Choosing One," published by the SEC. gp[] 10 Questions to ask potential financial advisors 1. What experience do you have, especially with people in my circumstances? 2. Where did you go to school? 3. What is your recent em­ployment history? 4. What licenses do you hold? 5. Are you registered with the SEC, a state, or the NASD? 6. What products and services do you offer? 7. Can you only recommend a limited number of products or services to me? If so, why? 8. How are you paid for your services? What is your usual hourly rate, flat fee, or com­mission? 9. Have you ever been disci­plined by any government regulator for unethical or improper conduct or been sued by a client who was not happy with the work you did? 10. For registered investment advisers, will you send me a copy of both parts of your Form ADV? 4 William Pen Life, November 2003

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