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Did You Hire the Right Financial Advisor?

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Risk Reward GraphGiven the importance of your financial investments (whether you are a business owner or just a normal consumer), it should come as no surprise that having the right person oversee them is something you should never take for granted.

That said you might be surprised how many consumers leave their financial well-being up in the air.

As a result, they leave themselves vulnerable to financial calamity sooner rather than later. Even if they stave off financial problems for the foreseeable future, their idea of a perfect retirement can very easily be put in jeopardy.

So, with the idea that investing in your financial future should always be taken seriously; take stock in your current financial picture and also where you would like to be down the road.

Research and Never Settle

If you haven’t already, start by research financial experts to see who and which investment company is best suited to handle your money needs.

With many still expressing concerns about an ability to retire one day, keep in mind that you are not alone with your fears.

You want a financial pro that has the following:

  • Experience – Although it sounds like a no-brainier, be sure that you hire someone who has some real meat on their financial resume. How long have they been in this line of work? Have they stayed with the same firm over time or jump around from place to place? What do their colleagues think of them? Have they and/or their company been involved in any concerning business matters over the years, notably complaints or even lawsuits from consumers? These are all areas that you should research;
  • Customer service – Nothing is more irritating as a consumer than having to chase down the person who is supposed to be working for you, not the other way around. While that individual obviously has countless other clients, be sure they can make time for you when needed. Whether it is a simple financial investment question or you have a financial matter of urgent concern, they need to be as accessible as possible to you.

You Have a Job Too

While locating the right financial pro is necessary in advising you of the best moves with your money, you also have an important role to play.

Unlike younger investors who have some “recovery time” on their hands when they either get a late start and/or make a few financial investment mistakes here and there, older investors do not have such luxuries.

If you are an older investor, it is important that you make sure all your financial eggs are in order, including playing catch-up if you are over the age of 50. Investors over that age are allowed to invest more money (up to a limit depending on if it is an IRA, 401K etc.) than younger investors.

Another key area of importance is whether you have a family or not.

If you are on your own, you have a little more flexibility. For those with a spouse and perhaps a child or two, financial decisions become all the more important.

Individuals in these situations should also make sure that they have a sound life insurance plan in place.

With a good life insurance plan, the breadwinner of the house can rest a little easier, knowing that his loved one or ones are covered should he or she become disabled and unable to work or even pass away.

While insurance agents are typically the go-to people for life insurance and other such needs, your financial pro can help lay out the basics for you, giving you some guidance on how having such a policy can impact your financial situation now and down the road.

Finally, with April 15 (tax day) creeping closer and closer, be sure to understand how your financial decisions can and will impact your tax burdens.

If you are contributing to personal IRA’s for example, you can note those contributions as deductions for the previous calendar year, lessening your taxable income.

With all there is to know about your financial situation today, tomorrow and ultimately down the road, make sure you’ve gone about hiring the right financial advisor for all your monetary needs.

When you do, you could find yourself being one happy camper.

Photo credit: BigStockPhoto.com

About the Author: Dave Thomas covers business and financial topics on the web.

Dear American Worker, Are You Pessimistic On Your Retirement Plans?

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The last few years have brought some unwanted news for many American workers and that does not appear to be changing anytime soon.

According to a recently released report from the Employee Benefit Research Institute (EBRI), worries regarding one’s job security and mountains of debt are leaving many American more doubtful than ever when it comes to their retirement.

The recent EBRI survey (approximately 1,270 workers and retirees ages 25 and up) shows that a mere 14 percent of workers claim to be “very confident” they will have enough money to live a comfortable life during their retirement years. Meantime, 38 percent of workers claim to be “somewhat confident” and 23 percent report they are “not at all confident.”

According to many of the survey respondents, current priorities trump retirement plans at this point and time.

Job Security a Major Concern

The survey shows that approximately 42 percent of respondents claim a lack of job security is the number one issue they are facing, with only 28 percent of workers claiming to feel very confident they will be gainfully employed for as long as necessary. Lastly, 62 percent of workers report that their debt is their biggest challenge now.

Money put away for retirement is a big obstacle right now for many American workers, as approximately 60 percent of those surveyed report having total savings and investments of less than $25,000 (excluding the value for their residence and defined benefit plans). Even scarier, nearly 30 percent of these respondents claim to have less than $1,000 in their savings.

According to an EBRI spokesperson, “A lot of the people who have either lost their jobs or are worried about losing their jobs are trying to put a little money away for a rainy day and just don’t have money to put into savings right now.”

High Health Care Costs Prove a Burden

One of the major factors right now eating away at available money to put into savings are high health care costs. According to the survey, only 13 percent of respondents state they are very confident they will be able to meet medical expenses when their working days are over. Meantime, just 26 percent of workers claim to be very confident that they will even have the necessary funds to cover basic expenses.

As the American population ages, the irony of the health care issue is that advances in that very area leads to longer life expectancy for millions and millions of people. Living longer lives also means needing to put away more money in order to meet those needs.

With retirement funds scarce for many American workers, more and more are delaying retirement in order to keep a regular paycheck coming in, while increasing their Social Security benefits by waiting to ages 67 and 70 to start taking benefits.

On the down side of that idea, approximately half of current retirees report they exited the workforce unexpectedly due to health matters, a disability, or an employer that let workers go or even ceased operations.

So before gloom and doom set in from reading these numbers, the report does point out that more employers are automatically enrolling workers in retirement plans such as 401 (k)s, with many of those companies increasing contribution levels on a yearly basis.

EBRI’s spokesman pointed out that “We continue to find that employees lucky enough to be working for an employer that sponsors retirement plans — and who choose to take advantage of it — are not only much more likely to have a significantly higher amount of retirement savings, but also much higher confidence.”

As an American worker, what do you view your retirement to be like?

Are you confident today that you will have enough money for tomorrow or should you be doing A, B, and C to right your financial ship moving forward?

Photo credit: gobankingrates.com

Dave Thomas, who covers among other topics workers compensation and credit card processing, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.