Insider Jeff Fleming

Secure Your Finances

To enjoy your ThirdAge, there's no getting around the need to plan ahead to ensure your finances will remain stable later on. This week, Jeff Fleming discusses when is the right time to get help from a professional financial planner, and he reviews the nuances of Social Security benefits.

Dear Jeff:
No financial writer ever talks about guidance for retirees who no longer have new money to invest. Even though I have had a business relationship with my financial planner for the past 15 years, I still feel that maybe I ought to get a second opinion. Should I go to a bank investment counselor? Or to a planner affiliated with one of the big investment houses? My financial planner wants me to keep my investments intact, meanwhile paying him over $200 a month in return for "free advice" anytime and quarterly personal financial statements. What good does it do to subscribe to the money magazines?

Jeff Says:
Banks, brokerage firms, insurance companies, CPAs and even attorneys now offer financial services, and each discipline offers a unique perspective. Consequently, it is very difficult for me to advise you before I understand what your primary concerns actually are. Let me make an analogy to traveling, as I love to do. If you plan to drive somewhere, do you look at a map, find a highway that looks promising, and then decide your destination based on where that highway leads? Do you select an airline and then determine a destination based on where that airline happens to be flying? Of course not! You first decide upon the destination and then determine how you will get there. The same holds true for your financial objectives. Determine them first and then find a consultant with expertise in that particular area.

It also sounds like you are either unhappy with the amount you are paying in fees or with the value of what you are receiving for them. You could manage your own portfolio if you have the time and expertise, but I would not recommend it otherwise. There is a tremendous amount of information available, but sorting through it could be a nightmare. If you are unhappy with certain aspects of your planner, find another to fill the gaps. But, avoid taking on all of the responsibilities unless you are truly capable.

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