Consumer Watch: Shrinking Sizes

by Jessica Sommerfield · 0 comments

It seems like everyone in America is consumed with shrinking. Their waistlines, that is. One of the ways to succeed at weight loss is to buy healthier grocery products, and based on the increase in healthier options we’re seeing in grocery stores, the food industry has also caught on to this trend and intends to capitalize on it. There’s another food trend the industry is adopting that is less beneficial to your financial waistline, however: shrinking product sizes.

Shrinking the size of the packaging in food products isn’t necessarily a bad thing. This is not only more eco-friendly by creating less materials that only end up in landfills; it saves storage space and transportation costs, and reduces operational costs for food manufacturers. This (hopefully) passes down to the consumer in the form of reduced retail prices. The problem is that many food manufacturers have begun to produce exactly the same size packaging that contains less product, while charging the same price.

Be Aware
Yes, that’s right. If you hadn’t already noticed, many items in the grocery store contain as much as several ounces less, while being packaged in exactly the same sized container as before. Just looking at the package won’t indicate there’s been any change. This isn’t something you’ll necessarily notice without taking the time to do so, because when manufacturers create updated versions of their products, retailers sell through and discontinue the previous version. One way to check would be to look at containers of shelf-stable products you’ve had for a while and compare them with those currently on the shelf. You can also examine the evidence gathered by people who’ve already done the research, on sites such as consumerist.com or mouseprint.org.

If you ask me, this under-handed practice seems extremely sneaky and should be protested. At the very least, you won’t want want to continue to fall prey to this manufacturing and retailing tactic. It’s true that grocery prices, in general, have risen with the cost of living. I would expect to pay more for a product if it now costs more to make. I don’t expect to pay more-per-ounce for a product that contains less but is deceitfully presented in the same sized packaging.

Here are a few more ways to prevent shrinking products from shrinking your grocery budget.

Always look at the price per unit.
This not only helps you decide which size of a product to purchase (sometimes certain ‘bonus sizes’ aren’t really a bonus when you compare the cost per unit), but whether you’re actually paying a higher price for less product. Most shelf labels in grocery stores contain this information. If not, you can use the calculator on your phone to quickly divide the price of the item by the weight in ounces.

Comparison shop, shop sale ads, and use coupons.
One simple way to beat unfair pricing is to refuse to pay full price, ever. Other than perhaps your staples, purchase items only when they are on sale, and stock up so your supply will last until the next wave of sales for that type of product. Getting into couponing is a great way to raise your awareness of the seasonal fluctuation of sales so you can plan your shopping and menus accordingly.

Take action.

If you are disturbed by these changes in packaging and pricing, notify the manufacturers that are making them. Making phone calls and writing letters can be an effective way to let food manufacturers and retailers know you’re aware of the deceit and place pressure on them to stop. If nothing else, you’ll probably get some good coupons out of the effort.

Travel in May for an Affordable Getaway

by Gina Blitstein · 0 comments

When many people think, “vacation,” they think summer. The weather’s warm, children are out of school and there are plenty of places to go and things to do. Summer, however, isn’t necessarily the best vacation season for your wallet. Vacation destinations often charge higher rates during the summer months because, well, they can, and enthusiastic vacationers are willing to pay them.

If you’re willing and able to vacation during the off-season, however, you can find some inexpensive deals providing all the fun for a fraction of the cost. Spring getaways, before Memorial Day, take advantage of favorable weather conditions, thinner crowds and bargain rates in many locations around the world.

Check out this list of 18 places all over the world that are affordable in the spring.

Tips for finding inexpensive spring getaways

Focus on vacation destinations that are just approaching or just concluding their busy season. For example, the Caribbean is a popular destination in the dead of winter but you can still bask in the tropical warmth and sun into May while enjoying lower prices on accommodations.

Be wary of the weather. Investigate the climate of places you’re interested in visiting. Many destinations around the globe are experiencing their rainy season or are too hot or cold to be pleasant in May. Make certain that unpleasant weather isn’t the reason that a particular destination is affordable.

General tips for affordable vacations

Begin your affordable vacation by planning it for the spring – May is perfect for many destinations! Then supercharge your saving by heeding these tips:

Rather than staying in a large city or popular tourist site, find smaller nearby towns for lodging and meals. Going just a bit off the beaten path can help you save, while being close enough to see and experience all you came for.
Look into all-inclusive packages. They can be quite affordable, so don’t discount them without investigating first. In addition to providing convenience and value, you’ll know in advance how much your lodging and meals will cost for vacation budgeting purposes.
Consider the economy of the area where you’re traveling. Some locales are simply more expensive to stay, dine, travel and sightsee in. Consider the rate of currency exchange when leaving the USA – the dollar goes farther in some countries than in others.
Avoid buying things in pricey “tourist traps.” Of course you wouldn’t want to miss a visit to Times Square when visiting New York City but buying anything there – from meals, to souvenirs to a bottle of water – is going to be significantly more expensive than buying any of those things just a few blocks away.
Think outside the box for authentic experiences. Investigate the local area and a variety of its potential attractions before you go. This deep-digging will mine you more fun and creative, less-expensive activities than just hitting the usual, well-known sites.
Should you fly or drive there? If there’s a choice, consult Costtodrive.com to determine if it’s cheaper to drive than to fly. Determine your priorities: While flying’s faster, when you drive, you have your own car and won’t need to incur the cost of renting one.
Plan ahead – and be flexible. Booking travel and accommodations well in advance will probably get you the best rates. Make an itinerary but also be on the lookout for inexpensive things to do and places to eat on the fly.

Beat the crowds. Beat the unpleasant weather. Beat the in-season rates. Spring travel can be a wonderful way to experience an amazing vacation destination at a bargain price.

Where have you enjoyed affordable springtime travel?

3 Things You Need to Pay Attention to for Long-Term Financial Success

by Miranda Marquit · 0 comments

If you want to achieve long-term and long-lasting financial success, it’s important for you to have your ducks in a row. The things you need are simple enough, but actually making the most of your situation isn’t always so cut and dry. As you plan for your future, here are 3 things that you need to pay attention to:

1. Your Cash Flow

You might think that your income is the most important thing when it comes to making sure that you have enough money to meet your obligations. This isn’t the case. In reality, your cash flow is more important.

While your income matters, you also need to pay attention to where all that money goes. Your cash flow takes into account the way money moves through your personal economy. Once you have it coming in, where does it go? What are you spending it on? You also need to pay attention to timing, since that can make a difference, too. Paying your mortgage one day before you receive your direct deposit paycheck can mean overdrawing your account and incurring fees, resulting in other problems.

Positive cash flow is essential, and you need to know how things are going if you want to improve your finances over time. If you don’t know what’s happening with your money, you can’t take steps to fix it.

2. Investments

Don’t forget about your investments. One of the best ways to build wealth over time is through investing. After you get your cash flow squared away, make sure you direct some of your financial resources into investment accounts. You can use tax-advantaged accounts to help you grow your money more efficiently.

Don’t forget to consider income investments like dividend stocks and bonds. There are a number of investments that offer you the chance to make money from your money, on top of capital appreciation. Look into how you can better manage your finances going forward.

Also, don’t neglect long-term investing strategies and the importance of asset allocation. When you are building wealth for the future, asset allocation is one of the most important things to consider.

3. Ability to Make More Money

Too often, we accept a job as the final determination of how much money we make. The truth, though, is that you can always make more money. While you do need to be savvy about what you spend, and work to get the best value for your money, you also need to consider making more money. This doesn’t mean that you need to start your own business with the goal of quitting your day job (although you can if you want to).

Sometimes it’s just about finding ways to make an extra $200 or $300 here and there, and then putting that money to work. Whether you start a small side business, monetize a hobby, or sell unwanted items every two or three months, you can make more money to help you pay for the things you want, as well as to use to invest in your future.

Pay attention to these items, and you will have a greater chance at long-term financial success.

Using a Budgeting App: The Payoff

by Jessica Sommerfield · 0 comments

Since the new year, my husband and I have been trying a new Android budgeting app known as GoodBudget. It basically works like a virtual envelope system to help you track your spending in each category without having to take cash out of the bank. The first few months, we’ve been learning how to tweak the budget and work out the kinks. There were expenses we’d forgotten about and confusion over distinguishing between necessary and non-necessary purchases, but it was all part of the learning process. Through this process we learned just how much we’d been spending on eating out and entertainment (too much!), and non-necessary items. In addition to the hard lessons, one of the benefits I discovered was a “fun money” envelope for personal spending. Now when I go shopping, I know exactly how much I am allowed to spend. I can spend each month’s fun money or save it up towards a larger purchase; the choice is mine. This bit of freedom is vital in any attempt at disciplining your spending.

This last month, March, we were finally able to see some results from using the budgeting app. For instance, from money we’d set aside in our “Things We Want” envelope, we were able to purchase a nice new coffeemaker when ours died. From this account, we also purchased another office chair I needed now that I’m taking college classes online. Another category of the account that grew was our “Extra Car Payment” envelope. Instead of making an extra payment each month of what we’d saved, we’d been accumulating it so we could wipe out a significant chunk of debt at once. Unfortunately, fate had other plans for this money. This weekend we took our vehicle in for warranty work, but the dealership discovered a few important fixes that added up to several hundred dollars. In the past, we would have been unable to account for this unexpected expense, and would have had to stagger the repairs out as we could afford them. After discussing the practicality of doing all the work while we had it in the shop, and the fact that everything that needed to be repaired should be done as soon as possible, we decided to use the money we’d set aside in “Extra Car Payment” for the car repairs.

Even though this choice means we’ll have to start at square one again with our Extra Car Payment envelope, the fact that we’d been able to save the money means out finances were not strained because of the unexpected. In the past, we would have probably been forced to use Emergency Fund money for these repairs, endangering our reserve should we actually encounter a real emergency before we had time to build the fund back up. Seeing just this one benefit of using the budgeting app has strengthened our resolve to continue using it and even increased our discipline to abide by our budget.

I would encourage you to explore this and other budgeting app options if you’re an Android user. I’m sure there are similar programs for iPhone, as well as computer software applications for Macs and PCs. With all the technology available to us, anyone can successfully formulate and follow a budget. You’ll be amazed at how much you can accomplish when you discipline your spending and make plans for your money!

Back to Basics: Old-school Frugal Activities You Forgot Were Fun

by Gina Blitstein · 0 comments

It’s easy in these technological times, with so much entertainment at our fingertips, to forget the old-school ways to have fun. Many of these “classic” forms of entertainment have been popular for decades and have provided much enjoyment for generation after generation. In addition to providing “tried and true” entertainment value, these activities are notoriously inexpensive to pursue. Experience some frugal, old-school F-U-N with activities like these:

Bowling – Families, couples, even individuals can rent a lane and knock down some pins without spending a lot, especially when you investigate discount days or times. To make this activity even more attractive, bowling alleys in many states participate in Kids Bowl Free, a program for which you can register your child(ren), entitling them to two free games daily throughout the summer.

Roller skating – Roller rinks are great places to find affordable fun for a variety of ages. Many also offer discount days and times. Look into registering your children at Kids Skate Free, a program offered by some rinks providing free skating times for children, making it an even more affordable activity.

Miniature golf/bumper cars – Many communities have activity centers where a variety of classic sporty games and activities like these can be enjoyed. The cost is low compared to the variety of activities and hours of fun to be had.

Gaming arcades – From pinball to PacMan, gaming arcades are the place to find all the lights and sound effects you remember from back in the day. Arcadefly.com can help you locate arcades and games when you’re feeling nostalgic.

Local fairs and festivals – Consult the Internet to learn about local events and festivals for free or low-cost fun, food, entertainment, unique shopping and people watching opportunities galore. Festivalnet.com will help in your search.

Museums – Museums provide so much to see and experience, they’re a bargain even at full admission. Check into free or discounted admission days to enjoy an even greater value.

Public parks and beaches – There’s usually no charge to spend a day at a park or beach. Pack or pick up a meal and head out to enjoy the simple pleasure of being around nature.

Board games – Few people are “bored” when they’re spending some quality time playing board games. New or old, they create an atmosphere of simple fun and togetherness.

Lawn games – Badminton, croquet, horseshoes… are some old-school standards. They’re still entertaining for a wide variety of ages, providing light competition and the opportunity to play in the fresh air.

Hobbies (indoor) – Arts and crafts, needlework, paint-by-number, wood carving, playing music… Much fun has been experienced by multitudes of people throughout the years exercising their creativity through a variety of mediums.

Hobbies (outdoor) – These include such pastimes as fishing, rock collecting, hiking, treasure hunting, gardening… Many people enjoy being outdoors while pursuing fun and adventure. While some basic equipment may be necessary, it’s not costly to take part in these activities once you have what you need.

Scenic drives – Whether it’s the landscape along the way or a day trip to a scenic, historic or interesting location, a simple drive can bring great enjoyment. Check the Internet for new and different places to go within driving distance and hit the road! Among those locations may be a nearby Forest Preserve or Nature Center which are free and offer safe and convenient areas to indulge in other fun and frugal activities like bicycling or rollerblading.

You don’t always need the newest gadget to provide entertainment. Rather than discount old-school activities, embrace them for their simplicity, frugality and genuine fun factor.

What are your favorite old-school activities?

3 Ways to Save Money on Investing Fees

by Miranda Marquit · 0 comments

One of the most difficult things about investing is the fact that you usually have to pay fees in order to invest. From transaction fees with brokers to expense ratios on funds, you usually have to spend money in order to make money as an investor.

Fees are one of the things that reduce your real returns. Along with taxes and inflation, fees can cut into your returns. Fees are one of the things that you are most able to control when it comes to investing.

That means that you need to take advantage of ways to reduce your costs when you invest. Here are 3 ways to save money on investing fees:

1. Shop Around

As with all things in life, it’s important to shop around if you want the best deals on anything. The same is true of investing. If you want the best possible prices for your investing dollar, you need to shop around.

There are a number of online brokerages that provide you with competitive rates. You can find brokers that charge transaction fees as low as $4.95 (or less) per trade. This is a great way to avoid high costs. There is no reason to pay $9.99 per trade when you could pay about half as much.

Before you open an investment account, shop around for low fees. You’ll be glad you did.

2. Follow Up With Your Employer

In many cases, it’s possible for you to request a less expensive plan from your employer. If your employer’s plan has high fees, it makes sense to find out if you can switch administrators.

Talk to your company’s human resources department. You might be able to become a retirement plan advocate, and get access to information about the plans available to you and your fellow employees. You can then help choose a new plan with lower costs.

Some studies indicate that workers lose out by about $150,000 over a lifetime due to overpaying on 401(k) fees. You do have options. If you don’t like what your employer offers, see if you can do something about it.

3. Invest in Low-Coast Index Funds and ETFs

Trading stocks and investing in actively managed mutual funds can lead to high costs. If you want to save money, you can do so by choosing to invest in low-cost index funds and ETFs. Some ETFs have expense ratios as low as 0.04 percent. That sure beats a ratio in excess of 1 percent.

There are a number of platforms that focus on these types of investments now. You can invest in Betterment, and only pay a low annual fee. Loyal3 is another platform that gets rid of transaction fees as focuses on low annual rates.

Even if you just invest within your company’s retirement plan, look for low-cost index funds and ETFs. You’ll end up with lower overall costs, saving you money over time.

There is no reason to pay high fees when you invest. You can get more for your money, and build a bigger nest egg when you do what you can to reduce what you pay in fees.

How to Shop for Glasses for Cheap

by Jessica Sommerfield · 0 comments

Over 75% of Americans wear glasses or contacts. Although this is an expense often covered by medical insurance, there are many plans that only cover exams or don’t provide vision coverage at all. Since glasses are such a common purchase, it’s helpful to learn a few ways you can save money while taking care of one of your most important senses. A few of the main factors to consider when shopping for eye wear are quality, price, convenience, and service.

Quality
The quality of your glasses is very important because you’ll be wearing them on a daily basis for up to a few years. Their fit, durability, and resistance to damage are important to your everyday life. The highest quality lenses and frames are going to cost more, naturally. Buying your glasses or contacts based solely on price and not quality may cost you more in the long run if you have to replace them sooner. If you’re paying out of pocket, it can be tempting to find the cheapest glasses, regardless of the quality. Save money (while not skimping on quality) by only purchasing features you need. Your eye care professional should be able to help you decide what features work best for your eyesight and lifestyle, without pressuring you to buy anything that’s unnecessary. Doctor’s offices aren’t in business to make money off their eye wear, unlike retailers. If you want the lower price of a retailer, read up beforehand about features that are offered and what’s recommended, from an unbiased source.

Price
The pricing of lenses and frames can vary drastically, depending on where you purchase them. It’s okay to shop for lower prices, but remember that the further you stray from the beaten path, the more you’re gambling with your money (and your eyesight). If your insurance covers eyeglasses, you’re better off getting them through your eye doctor, since the expense isn’t a concern. Then you can cash in on the benefits of localized, personal service. But, if you’re paying for a significant part of your eye wear out of pocket, you may want to check out a few of the following options.

(1).Big-chain retailers
Retailers such as Costco, Wal-Mart or Sam’s Club include vision centers and large selections of discount eye wear. According to Consumer’s Report, Costco received the highest ratings from customers who shopped for glasses in 2012. Prices at these bulk supply and department stores can be as much as 50% lower then doctor’s office prices or eye wear-exclusive retailers like Lens Crafters.

(2). Online retailers
Online prices can be some of the best. Many frame and lens sites sell the same brands and models you’ve seen in stores, so you can take advantage of knowing how they fit and then request the online price at the walk-in location. There are also sites that sell extremely unique frames in case you want to stand out. Always be sure to verify that the site you’re shopping on is reputable and that transactions are protected.

Convenience & Service
Convenience becomes important the minute you damage or lose your glasses. If you ordered your glasses online, it can take a few weeks for replacements to arrive. Since they usually employ outside companies to fill their orders and make major repairs, doctor’s offices aren’t much faster. The fastest way to get same-day service is through more expensive eye wear companies like Lens Crafters (they have to be doing something right to stay in business!). Prompt and personal service is also lacking if you purchase your eye wear online or at retailers who don’t offer much more than a low price. There’s something comforting about being able to walk into an office to get your glasses adjusted and cleaned completely for free.

Purchasing glasses is a small investment in your vision. While the best possible price is desirable, there are many more factors that are equally as important and need to be considered so you are able to enjoy and benefit from your glasses for months or even years to come.

Tax Day: Oh, No, I Owe!

by Gina Blitstein · 0 comments

April 15 is nearly upon us. Many people think of filling out their income taxes as, “refund time!” Others, however, find that, instead of a windfall, they owe Uncle Sam this year. Usually, owing taxes means that you’ve incurred a significant shift in your previous year’s income. Any refund you are due is the amount you overpaid during the previous year. Likewise, an amount owed indicates you hadn’t contributed enough in taxes and it’s time to settle up. It’s important to realize that when you owe taxes, you didn’t do anything wrong – it’s just that, for whatever reason, you didn’t contribute enough in taxes in relation to your ultimate income for the year.

If this is your first time owing rather than expecting a refund, don’t panic. Of course it’s more pleasant to discover you are owed money than that you owe but it just happens that way some years. You may feel overwhelmed – especially if the amount you owe is significant – but the IRS is not the scary beast you may have come to believe it is. It is a debt that needs to be taken seriously but the situation isn’t as dire as you may fear.

Should you find yourself owing more than you can pay right now, here are some strategies for dealing with the situation:

File on time, even if you can’t pay your back taxes in full. By doing so, you’ll avoid the late filing penalty. Include payment for as much as you can afford – even if that amount is nothing. Do consider other options, like taking out a loan, paying by credit card or dipping into a savings account because financing your repayment is expensive through the federal government. In the event that you have no other resources upon which to draw, however, you do have that option.
If you didn’t submit payment in full when you filed, the IRS will be send you a bill for the unpaid taxes, plus penalty and interest for the unpaid balance. Don’t panic, it’s just a bill – one that needs your immediate attention – but it’s just a bill. If, at that time, you still cannot pay the balance, contact the IRS right away to set up a payment plan! Their contact information will be on the bill.
Don’t delay – call today! Demonstrate that you take the debt seriously and that you are committed to paying it in full. When you call the IRS, you’ll be directed to an advisor who can assist you in setting up a payment plan. He or she will verify the amount you owe and ask you to suggest a monthly installment amount that will fit within your budget. The advisor will let you know if that amount is acceptable; if it is, a fee will be charged to establish the payment plan, and the installments will be billed to you. You can even have the payments directly debited from your account.
Failure to pay taxes due can result in a tax lien which can negatively impact your credit in a significant way. If working with IRS is beyond your comfort level, you can consult a tax accountant or attorney who specializes in working with the IRS.

The bottom line is, don’t let owing taxes frighten or upset you. It’s normal in the course of the ebb and flow of a financial life. It can be dealt with relatively easily, as long as you are willing to keep the lines of communication open between you and the IRS.

Are you getting a refund or do you owe taxes this year?

Are Your Working for a Paycheck or a Purpose?

by Jessica Sommerfield · 0 comments

It seems like there is increasing pressure, in the present economy, to do whatever it takes to secure a good income. I’m not talking about the need to be willing to take whatever work you can find until the job you want opens up; that’s just survival. After all, everyone needs to be able to pay the bills. No, the disturbing trend is that more and more individuals are pursuing training and even going into debt for education that will qualify them for high-paying jobs they don’t really enjoy.

Your career is one of the choices you make that affects every aspect of your life, so it’s important to put a lot of thought into it. If you surf the Web, there is plenty of information about what are considered the top-paying jobs, and which career fields are growing. Although salary and job stability are definitely important factors when making a career choice, they are not the most important ones. Have you ever asked yourself whether you actually like your job? Does it provide you with a sense of fulfillment? There are, admittedly, situations and circumstances that may limit what you can choose to do for a living: a lack of education or training, a family to support on one income, obligations that prevent you from attending college, a disability, or your location, to name a few. But what if you had no such limitations? What job would you choose?

I am noticing a lot of young people going to college for careers that pay extremely well, but that they don’t enjoy. Medical professions are very honorable, but how many people choose them for the six figure salary and not out of altruistic motives, or any interest in medicine? Those who choose careers they don’t enjoy in some aspect are getting paid to be miserable, bored, or indifferent. And, since we know that money can’t buy happiness, where does their happiness come from? Certainly not from their job.

Of course, your career isn’t your entire life; it’s just what you do for a living, right? Considering that most people spend forty or more hours a week and at least one third of each day at their job, the career you choose takes up a considerable amount of your life. The income from your job may enable you to do things you wouldn’t otherwise be able to, but sometimes at the expense of doing the things you’d prefer to be doing. There’s a common concept that working isn’t supposed to be fun or enjoyable; it’s work, an obligation, a chore. There is no doubt we were designed for work. Just look at some retirees who are starting new businesses after a lifetime of working, and you’ll see the proof. We need to be doing something. The important distinction I’m making is the difference between working for a paycheck and working for a purpose.

In the job markets of the modern world, there may not be the ‘perfect’ job that fulfills your income requirements while enabling you to utilize your passion and purpose. But you can make it your goal to get as close as possible, instead of focusing merely on numbers. At the end of your life, you’ll look back and feel content with having fulfilled your calling and pursued your dreams, or you’ll regret all the hours wasted in drudgery for a paycheck that will not outlive you. So here are some things to think about:

Do you enjoy what you do for a living?
Is there something you’d enjoy more?
What are the obstacles keeping you from doing that, and are they able to be overcome?
What excuses are you using for not pursuing your dreams? Are they superficial?
What can you do today to better fulfill your purpose or at least set things in motion?

To a Prosperous Future: Choosing a Financial Planner

by Gina Blitstein · 0 comments

Long-term financial planning can prove confusing and overwhelming; most people shouldn’t attempt it alone. Your success at managing your finances will be enhanced by partnering with a professional who knows the intricacies of the field. A financial planner advises clients on how to save, invest, and grow their money, providing an overall picture of and roadmap to their fiscal future.

Why consider a financial planner?

A financial planner is paid to keep an educated, involved eye on the ball. As your life progresses, it’s likely your finances will become more complicated. If you plan to buy or upgrade your house, fund a college education or retire comfortably, it will be tremendously helpful and reassuring to have a trusted advisor in your corner. Beyond helping you plan for your financial future, a planner can help you stay on track by guiding your decision-making and urging to to stay disciplined.

What to look for in a financial planner

Seek out a financial planner who:

…holds a CFP (Certified Financial Planner) credential. This certification indicates that the individual has passed a rigorous test administered by the Certified Financial Planner Board of Standards and takes continuing classes on financial and ethical matters. While not required of a financial planner, it indicates his or her willingness to project a knowledgeable and upstanding reputation. You can check on the status and validity of a CFP credential.

…is a fiduciary. The National Association of Personal Financial Advisors offers:

Following the NAPFA Fiduciary Oath means I shall:

Always act in good faith and with candor.
Be proactive in disclosing any conflicts of interest that may impact a client.
Not accept any referral fees or compensation contingent upon the purchase or sale of a financial product.

…charges fairly. It’s better to seek out a planner who charges a flat fee, a percentage (often 1%) of your annual assets, or an hourly rate, rather than one who receives commission from selling you financial products. A planner who bills hourly may be the best solution for those just dipping their toe into the financial planning pool. They’re likely in the process of building their business and, therefore be particularly eager to build their reputation by helping you build wealth.

…is the right “size” and “shape” for your situation. You want to be a “big frog” in your planner’s pond so he or she will make time to focus on your situation and answer your questions. Seek out a planner who has success working with clients like you; with similar income status and circumstances (number/age of children, tuition or retirement to save for…).

…is honest. Find out to whom you’ll be entrusting your financial future. Run a background check to determine if they’ve ever been convicted of a crime or been put under investigation by a regulatory body or investment-industry group. Ask for references from current clients whose financial circumstances are goals are similar to yours.

…is realistic. Look for sound advice rather than overblown claims. He or she should be focused on discovering the level of risk you’re willing to take and your short- and long-term goals. Pay particular attention to his or her overall strategy toward helping you achieve your goals, even when economic times are tough.

Finding a financial planner

As with many such personal decisions, seek out personal recommendations. Ask family, friends, co-workers who they’ve worked with. Also consult Garrett Planning Network.

While there’s a significant cost involved with hiring a professional financial planner, it’s easily justified in the peace of mind gained by knowing a savvy, trustworthy professional has your back.

Do you have a financial planner?

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