Kiplinger Article Tells Us How Pick the Right Financial Planner but Rajiv Nagaich Says Thats Not Enough - AgingOptions

In selecting articles for the AgingOptions blog we often come across articles like this one from the Kiplinger financial website.In it, editor Mary Kane explains to retirees and those planning for retirement how to pick the right financial planner.As is often the case with articles like this one, Kanes advice is fine as far as it goes.

But as Rajiv Nagaich of AgingOptions reminds us, selecting the right planner is worthless unless you have the right plan, and most people dont.Well get to Rajivs important advice in a moment.First, what does Kiplinger have to say about the financial planner selection process? Two words: Its complicated.Finding the Right Financial Planner Can Mean a Complicated SearchWhen youre trying to get a handle on your money, from investments and savings to figuring out retirement and preparing for your future, you might need help from an expert in the financial planning world, Kane writes.But finding the right person can be more complicated than rebalancing your portfolio.

Part of the problem, says the article, involves titles and terminology.A wealth manager, for example, could come from a robust firm with estate planning and tax specialists but a wealth manager could also be a junior bank employee.A financial planner might be an actual planner, a broker, a coach, or even a therapist.Then, says Kiplinger, once you find the right professional, youll need to understand how he or she earns their living.

Some planners offer subscriptions, similar to your annual gym membership dues, with prices based on the complexity of your situation or your income, the article explains.Maybe your planner is fee-only for some services and also charges an annual percentage fee based on your assets under management.Or the planner charges you an annual fee, or a retainer, for financial planning and advice only.

Or a commission on products sold.Or a blend of all of the above.Finding the Right Financial Planner: More Choices, More Services, More ConfusionThis degree of confusion has grown even worse in recent years because of what Kiplinger calls the transformation of the financial services industry.In this brave new world, brokerages and investment firms such as Vanguard and Fidelity now compete to offer commission-free trading to small investors.

Individual investors can outperform actively managed funds by investing in passive investments in the form of indexed funds.Savers can even access low-cost roboadvisers who provide digital investing advice based on algorithms.In response to all these competitive changes, the article says, financial advisers and planners are expanding their services, going deeper with their clients to show them how to make a financial plan that aligns with long-range goals and deeply-felt values.For example, says Kiplinger, A planner may offer hands-on help, along with advice, helping you figure out long-term care for a loved one by joining you on touring potential facilities or referring you to an elder care professional.

Some might sit down with you and help you fill out federal financial aid forms for your college student.Anything even remotely related to financial planning is fair game in this new and shifting landscape of choices.Finding the Right Financial Planner: More Benefits for the Young and Middle IncomeIn a welcome shift, Kiplinger reports that financial professionals as a whole are starting to work with a much broader segment of the population, including consumers with more modest incomes, younger workers and other non-traditional clients.In other words, its no longer just the wealthy who can tap into financial advice, which the article points out can be very beneficial to pre-retirees and retirees.

Kiplinger reports that advisers who are broadening their services to include guidance on issues like career transitions and end-of-life-care are seeing success.The Kiplinger article ends on a familiar note.With some effort, you can find the right financial professional, it says.Your search is about finding what kind of adviser youre most comfortable with, so consult with several professionals and sample different approaches to decide on the right fit.

The premise, as we said at the outset, is simple.If youll do the work to find an adviser, then follow the right steps, youll be just fine.Is that the right approach? Definitely not, says Rajiv Nagaich.If finding an adviser you feel comfortable with is all you think you need, its time for a financial reality check.Finding the Right Financial Planner is Not Enough, Warns RajivRajivs response is blunt.

Unless you have the right plan, finding the right financial planner is useless, he scoffs.In fact, its dangerous, because any plan that only addresses money lulls you into a false sense of security.As Rajiv often reminds radio listeners, having plenty of money is no guarantee that you will live out your years the way you want to.

He cites some very well-known examples.What do you make of the reality that with a $15 million dollar estate, Glen Campbell could not live out his life in his home after he had dementia? Rajiv asks.$50 million wasnt enough for Tim Conway.

$80 million wasnt enough for Casey Kasem.And these guys probably had the best financial planners out there! But it wasnt enough.Heres the question you have to ask, says Rajiv.Can you honestly say that you have done such a good job of financial planning that you are totally confident that as you age you will not run out of money, end up in a nursing home, or become a burden to loved ones? There is more to financial planning than accumulating money.

Do you know what that is? Do you know where to start this discussion? Call us we can help you get started in the right direction.Two Important Retirement-Planning Announcements from AgingOptionsAt AgingOptions our chief desire is to help you prepare for the kind of retirement youve always dreamed of having.Toward that end, we want to share two important announcements that are designed to facilitate your LifePlanning process even during this period when most of us are required to avoid gathering in groups.First, Rajiv Nagaich has scheduled several of his popular, free LifePlanning Seminars in the form of webinars that you can watch conveniently at home.Simply visit our Events Page and register for the webinar of your choice.Our second announcement: in cooperation with our partners at LifePoint Law, we are excited to launch a ground-breaking new service called the LifePoint Law Emergency Legal Kit.

Without leaving your home, you can now consult with a LifePoint Law attorney who will work with you to prepare and sign a complete set of vitally important legal documents including both Financial and Healthcare Powers of Attorney, a Living Will/Advance Directive, a Will or Trust, and much more.Click on the link or call us at AgingOptions and well explain this excellent service to you.Reliable information has never been more important and thats our promise to you at AgingOptions and LifePoint Law.Age on!(originally reported at www.kiplinger.com)