Let say, hypothetically, that I’m looking for help in sorting out my finances. On the plus side, I have a good income and own my home. On the minus…big mortgage, mountain of credit card debt, retirement is looming; terrible cash flow. Modest 401(k). No stock portfolio.
I’d like to dump all this on someone’s desk and say “tell me how to fix it”.
Who would that be? Accountant? Credit counselor? Some sort of generic “financial advisor”? How do I find one?
If you have your own business, I would suggest an Accountant.
Otherwise I think I would look for a Certified Financial Planner (aka a CFP of some kind) He/she should assesses your overall financial picture, with an eye on your Retriement savings, credit card debts, and any other big financial area. If he/she is good best ones can objectively put your finances into context organize and orient your overall financial picture and put you on a plan to where you want to go
The average cost of advice from a financial advisor starts at around circa $150 an hour (depending on where you live and the advisor’s credentials ). The first meeting with a financial planner is usually free.
NB (this is really important given what I just said)
A good resource on any generic finacial stuff is the Motley Fool who say about CFP:
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*The sad fact is anyone can call herself a “financial planner” in most states. There is no licensing requirement and very little regulation. Noting a pro’s credentials (those official-looking designations embossed on the letterhead) is your first line of defense in sussing out a pro. The charlatans don’t have and can’t use these designations, so the credentials become your seal of quality. (On the right-hand side of the page is a list of common credentials and what they mean.) Of course, credentials don’t tell the whole story of how much skill an investment professional possesses, and if she is the one for you. There’s something to be said for that gut feeling you get when you meet with a pro – if you trust the advice being offered and feel the planner has a good understanding of your best interests. Don’t be fooled by colorful graphs presented to you laminated and perfect-bound. The software most planners use is widely available to those in the industry. Instead, look for substance, and proof that the advice applies to your situation. You want to be wowed.
Also be aware that most financial planners choose investments based on a limited pool of investment products – mostly mutual funds – that their firm offers. While that doesn’t mean all their recommendations are duds, it might turn out that there are better options out there for your money. You must decide if you’re willing to do a little legwork to find out.*
An INDEPENDENT, QUALIFIED one.
Preferably someone who has either done good work for someone you know, or specialises in your particular circumstances.
For example, my dad’s firm specialises in doctors, dentists and pharmacists, my dad is the partner who specialises in retired doctors and dentists. Their firm does everything from insurance and pensions to mortgages and investment portfolios.
Thanks, guys - this was helpful.