Planning Ahead for Retirement

Where to Find a Financial Planner

Be prepared to shop as carefully for a financial planner as you would for a new car. Ask friends, relatives, or business associates for recommendations. Check with instructors teaching personal finance at a local college or university. You may want to ask people you already hire in another capacity, such as an attorney or accountant, for a recommendation (though it may create an awkward situation if they recommend themselves for the job).

Start with at least three candidates. Before interviewing them, get a detailed statement of their fees and services, a resume, and professional references, including past clients. Check with past clients before you interview.

Most good financial planners will see you for a half hour to an hour to be interviewed at little or no charge. Worksheet 12 has a list of questions you may want to ask in an interview.

Creating a Financial Plan

There are several steps to the financial planning process.

1. Gather data for your planner, including:
• Names, addresses, birth dates, etc., of your partner and dependents
• Names and phone numbers of your lawyer, accountant, and banker
• A list of all bank accounts, stocks, bonds, and any other assets, along with the purchase date and current value of each
• A description of all your financial commitments: how much money, for how long, and reason for the commitment
• Copies of appraisals of property and other valuables
• Salary records, recent tax returns, and your expectation of your (and if applicable, your partner's) future earnings
• Your budget, including your fixed and variable expenses
• Your retirement plans, regardless of your current age
• A statement of your long- and short-term goals, including how much and whether you want to invest, and if so, what risk
2. Meet with your planner to review your financial situation and talk about your goals and objectives. A good planner will help you get specific by putting estimated costs and timelines to your goals.
3. Work with your planner to determine your financial trouble spots. Insurance, taxes, access to credit, investments, retirement income potential, and emergency funds should all be reviewed.
4. Once you have a plan that makes sense to you, get whatever help is appropriate from your financial planner to put the recommendations into effect.
5. Decide when you will review your plan to make sure it is still appropriate, or whether you need to alter it due to changing circumstances.

Planning Ahead for Retirement

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