Why do I think I might need help?

I think I need an objective voice occasionally to discuss my financial life in general.

I get concerned when I see my investments decline and could use a little reassurance at those times.

I wonder if I don’t know as much about investing and other financial matters as I think I do.

I wonder how I would alter my financial plans if a major change occured in my life such as prolonged illness, marriage, children, or divorce.

I’m not sure if I need help on a continuing basis, a one-time basis, or an occasional basis.

What, if anything, has changed, or is soon to change in your life?

I’ve changed jobs and need to review my new company’s benefit package.

I’d like to purchase a house or trade up from my current residence and am uncertain as to what I could comfortably afford.

I’m getting divorced or married and don’t totally understand the financial implications of this.

A new baby is going to change everything and I’m wondering how best to deal with the financial implications.

I’m starting to think about the future costs of education for my children.

I’m wondering about the implications of deteriorating health of one or both of my parents and how that will affect me.

Who is the right person to ask – a personal financial coach, an investment adviser, or a financial adviser?

If you need help defining some high level goals for your life, help developing a written plan to achieve them, and having someone occasionally review them with you while offering some motivation as well, then you should look for a personal financial coach. This person will help you discover your relationship to money and help you to understand the decisions you make about money, but will not be involved in any direct way with your money.

In short, a personal financial coach will help you use your money as one critical tool to achieve your life’s goals.

If you need help primarily managing your investments, then you should look for an investment adviser. That person should either share your current investment philosophy or clearly explain to you why your current philosophy may not be the optimal approach to achieving your investment objectives.

Ask yourself whether you want to manage your own investments and would like a second opinion on them, or whether you want to turn them over to someone to manage them including making buy and sell decisions for you.

If you need help with budgets, insurance needs, retirement projections, estate planning, mortgage guidance, questions on how to best finance purchases and pay down debt, etc., then you should look for a financial adviser.

Relevant questions to ask a financial adviser

What is your business organization – are you an independent (e.g. an L.L.C.), a broker, an investment banker, or something else?

From what source do you derive the bulk of your revenue: financial advising or investment advising? You may think this question intrusive – it’s not – it’s one way to determine where emphasis and expertise lie.

In what do you specialize, and what does a typical client look like in terms of age, net worth, and financial goals?

Will you act as fiduciary in everything you do for me, or in some things but not others? Will you sign a fiduciary statement What’s a Fiduciary and Why Should I Care?

How do you charge for services: fee-only, fee-based, or commission based?  What are your rates, and are they negotiable? Are fees and expenses documented in writing?

Relevant questions to ask an investment adviser

How long have you been in the business of managing client investments?

Can you explain to me your overall philosophy when it comes to investing?

Do you prepare and update annually Investment Policy Statements  Why You Need an Investment Policy Statement (IPS) For Investments (IPS) specifically tailored for each and every client? If so, does this IPS address how you report investment performance?

Do you earn fees of any kind for investments you recommend or directly manage for clients?

Do you earn fees for referring clients to other professional such as CPAs, insurance brokers, or estate planning attorneys?

Will you give me a written breakdown of all fees that I will pay upfront and on an ongoing basis?

What credentials do you hold? There are many, including CFP (Certified Financial Planner), Chartered Financial Consultant (ChFC), and Chartered Financial Analyst (CFA).

Are you registered in the state as a Registered Investment Adviser (RIA)? If so, would you send me your ADV Part 2 (sometimes referred to as the “brochure”), and give me your CRD and IARD numbers so that I can look you up in the Financial Industry Regulatory Authority (FINRA) database?

Do not be reluctant to ask these questions and, if you receive evasive answers, look elsewhere!

Making the best of a working relationship with a financial professional

If you have a spouse or partner, bring him or her to meetings. Be forthright about how decisions are made between the two of you.

Be honest and thorough when going over your financial circumstances. Do not hold anything back, especially those things that you’re not proud of. You’re there to fix things that need to be fixed and to improve things that could be improved; you’re not there to impress anyone.

Respond to texts, emails, and calls promptly, just as you would expect and require from your adviser.

Notify your advisor of anticipated big changes in your life before they occur: weddings, divorces, birth of a child, purchase or sale of a house or disposition of other major assets.

When you’ve taken your advisor’s advice on specific actions, let him or her know that by communicating what steps you have taken. You should consider working with a financial professional as an ongoing partnership formed to discuss, define, and implement plans that are always in your best interests.

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