It’s the new year and hopefully you’re giving careful thought as to your financial goals for 2008. Are you planning to save for a new car? Contribute fully to a retirement fund? Save towards an emergency fund? If you are, then you should consider meeting with a financial advisor.
- Will you fund a ROTH or Traditional IRA?
- How much can you afford to contribute?
- What kind of lifestyle do you want when you retire?
- Have you thought about the correct mix in your portfolio as you prepare for retirement?
- Do you have an emergency fund? If no, why not?
- What are your 2008 savings goals?
- Are you saving at least 10% of your income?
- Will you be saving for your child’s college education?
- Is your debt manageable?
- Do you have a plan to pay it off?
- Has it become overwhelming?
- Have you created a will?
- How about a trust?
- Do you know what they are?
- Who will care for your children when you are gone?
- Who will receive your estate once you pass away?
- Have you made any preparations in this regard?
Mint gives these tips on what to ask when interviewing a financial advisor:
- What licenses they hold, in which states
- What services they provide
- Their investment strategy
- How they would prepare and implement your plan
- Who their existing clients are (ask for references)
- The average size of their portfolios
- How their portfolios have performed
- Their fees and/or commission fees
- If they sell ï¬nancial products
These are just a few questions to get you started. Of course, even if your answers to these questions prove that you know little about your fifinancial situation, you don’t need to run out and get a financial advisor. There are tons of personal finance books, blogs and articles on the Internet to help you find the answers to the above questions, so no worries. However, keep in mind that unless the person giving the advice is licensed in the area of personal finance they are unqualified to give advice. We can share tips, strategies and the like and some may even work for you, but in the end it is best to seek the advice of a professional who can run numbers, give advice specific to your situation with experience and education to back it up.
Do you have a financial advisor? Why/Why not?