Who can help you keep your money?
By Phil Bollin
Planning for retirement is becoming an increasingly challenging task in today’s environment. With pension plans disappearing, Social Security’s future in question and health care costs rising at dizzying rates, tomorrow’s retirees will have to assume much more responsibility for their retirements. With so much at stake, choosing the correct financial advisor is of paramount importance.

Start by asking your accountant, attorney or trusted advisor(s) for the names of advisors he or she would recommend. Family members and friends may also be good referral sources and will presumably have your best interests in mind. I caution against asking a financial advisor you are interviewing for client references because it is too easy for advisors to manipulate the client references they provide.

An important factor in choosing an advisor is the investment strategies and philosophies the advisor uses. Do you want to work with an advisor who chooses individual stocks or one who attempts to time the market? Maybe you would rather work with an advisor who uses asset allocation strategies and implements the strategy with low-cost investments. Some strategies are less likely to succeed and/or are riskier than others so make sure you thoroughly understand them.

An equally important factor to consider when choosing an advisor is the advisor’s credentials, such as his or her professional licenses, designations and affiliations. You should also ask the advisor directly about any client complaints, disciplinary charges, criminal activity or bankruptcies. If there are blemishes on her record or he has bounced around different firms, how likely are you to get a straight answer? Fortunately, one of the largest industry regulatory agencies has provided consumers with a way to check advisors’ records. Simply use the broker check option on the FINRA website, located at http://brokercheck.finra.org/Search/Search.aspx. You may be surprised by what you find–individuals with numerous client complaints, advisors without appropriate licenses, or, worse still, advisors who have lost their licenses for illegal or criminal behavior.

Compensation is another important consideration. Many consumers and industry experts believe that you are much more likely to receive unbiased advice from fee-based advisors whose compensation is not linked to the investment products they are recommending. Don’t be misled by the claims that the investment product company will compensate the advisor with nothing out of your pocket. Every investment product or solution has some cost to the user; some are just hidden better than others. It is far better to understand all of the costs up front than to find out your money is locked up for a decade unless you want to face considerable surrender charges.

The importance of selecting the right financial advisor cannot be overstated. After all, your comfortable retirement may very well hinge on it.

Phil Bollin is the president of Bollin Wealth Management and can be reached at 419-893-8000 ext 131.