Financial Planning, Retirement Plan, 401k, Investment Blog

Financial Planning, Retirement Plan, 401k, Investment Blog

Posts Tagged ‘financial advisor’

How to Avoid Ponzi Schemes

Posted February 2, 2009 by Bernz

The recent arrest of celebrity financier Bernard Madoff brought to light an old investment scam, one that is enjoying a recent resurgence as investors try desperately to hold on to their returns.

The ponzi scheme is named after 1920’s investment manager Charles Ponzi. Ponzi had promised his investors that they would double their money in 90 days- a feat which was not being accomplished anywhere else at the time. Dubious investors were won over by testimonials by happy clients and were soon bringing in amazing returns on their own investments. What Ponzi didn’t tell anyone was that it was impossible to make that kind of return on investment. What he had to do to keep up appearances was to pay the astronomical returns out of new investment contributions. Ponzi’s scheming would have eventually collapsed when the new money couldn’t keep up with the promised returns but instead Ponzi called himself out. He was irritated that a firm down the street had started a similar program and he called the police. Ponzi spent several years in jail before being deported back to Italy. He died penniless two decades later.

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Posted in Estate Planning, Financial Education, Financial Goals, Misc, Wealth Building | No Comments »

Five Tips on Picking a Financial Advisor

Posted November 22, 2008 by Bernz

A financial advisor is someone who you really need to trust because he is investing your most valuable resource, your money in the form of your risk capital. There are a few initial things to remember at a minimum, any advisor should have at least one (usually both) of these credentials: CHFC – Chartered financial consultant or CFP – Certified financial planner. All registered advisors have an ADV which goes through their compensation, education, and how they invest. It is very helpful in helping you learn about them so ask for one!

So here are 5 things that you should look for in a good financial advisor.

Tip 1:

Look for a comprehensive financial planner who can coordinate an overall plan to deal with your investments as well as your education, retirement, estate, insurance, and tax plans. Specialization is nice, but if you are looking for someone to help you coordinate all of this, then he needs to be able to manage it all with you.

Tip 2:

Go independent! Financial planners through companies are great for their resources, but can only sell products through that company which put them and you at a disadvantage. (more…)

Posted in Retirement Planning | 1 Comment »

How to choose a financial advisor

Posted November 4, 2008 by Bernz

A financial advisor, also known as financial planners or brokers have expertise in investing. Some financial advisors specialize in insurance, others 401K plans, and some financial planners have a broad background.

Here are some tips on finding a financial advisor that’s well-suited for you.

First, I recommend you look for a fee-based financial advisor. These advisors charge you either an hourly rate or a flat fee. A commissioned-based financial advisor gets paid based upon what products she or he sells. So in spite of their very well placed intentions of giving you sound financial advice, commission-based financial advisors have to sell in order to get paid so they have a huge stake in you buying their product.

Look for a financial advisor the same way you would go about looking for a new dentist or veterinarian: ask around. Talk to your neighbors, co-workers, and friends, people in your alma mater or professional organizations you belong to.

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Posted in Retirement Planning | 3 Comments »