To help you determine if a financial planner is a wise investment for you, the Federal Trade Commission and the American Association of Retired Persons have jointly published "Facts About Financial Planners" (Item 434X, 50 cents). The booklet explains how to decide if you need a planner and what to expect if you hire one.
To get your copy, send your name and address along with 50 cents to Consumer Information Center, Department 434X, Pueblo, Colo. 81009.Not everyone needs the advice of a financial planner. By doing your homework, you can, and may prefer, to make your own investment decisions. But, if you decide to hire a financial planner, you still need to learn as much as you can about making wise investments to be able to evaluate the planner's recommendations.
A good planner will review your total financial picture and offer advice about what might make money work best for you.
Begin by carefully considering what is important to you. It may be buying a house, sending a child to college, or spending more time with your family. When you know why you want to save money, you are in a much better position to plan your investments.
Next figure how much you own and owe and where your money goes every month.
If you decide you have money to save and would like help with the process, start looking for a professional with legitimate credentials. When you interview them make sure they know about taxes, insurance, estate and retirement planning issues and the basics of investment and budgeting.
Most financial planners earn all or part of their living from commissions on products they sell. Most financial planners are dedicated and responsible, but many may advise you to buy a product on which they will receive a commission. Knowing this may help you weigh the pros and cons of an investment they recommend.