How to Choose a Retirement Planner

Working with a financial planner can help you make sense of the retirement plans that apply to you and help you identify the best solutions for your needs, says Taylor Schulte, CERTIFIED FINANCIAL PLANNER® and founder of Define Financial in San Diego. “

Because it’s not easy for a couch potato to jump right into a 5-day-a-week workout plan, a good trainer might start with 1 or 2 days and slowly add more as the client begins to make exercise a regular habit,” he says. “The same idea can be applied to your retirement plan.

A planner can help you establish a plan and start with a small, monthly contribution—maybe it’s $20 per month. As you begin to get more comfortable with the process, you can consider adding more where you see fit.”

When it comes to selecting a financial professional, it is important to know how the planner is compensated for his or her time.

A commission-based financial advisor receives a commission when he or she buys or sells a financial product for a client. On the other hand, a fee-only planner does not receive commissions of any form and instead charges a flat fee for providing advice and assistance. This fee is typically billed as a percentage of the investments being managed, a flat project fee, a monthly fee or even an hourly fee.

Schulte explains that the benefit of working with a fee-only planner is to “help eliminate conflicts of interest and receive objective, unbiased advice.”

Contrary to popular belief, you do not need to have a lot of money to start working with a financial planner. Schulte offers monthly and hourly fee schedules to accommodate young professionals who are just starting their careers. Just as you want to develop a relationship with your training clients so as to maintain their business, a good financial planner wants to keep your business for the long run.

To find a planner in your area, go to www.letsmakeaplan.org/.

To view the full article which ran in the November 2014 issue of the IDEA Fitness Journal click here.