Dealing with Financial Advisors

Invest in Private Companies?

Should you invest in non-public companies? A lot of people are doing that, via privately issued equities and debt instruments; hedge funds, venture capital funds and limited partnerships are also popular non-public companies.

This trend includes a broad swath of industries, just not tech companies. Banking is the largest in dollar terms. An advisor presentation on private investing, as part of National Financial Advisor Week, noted that this arena is an increasingly popular and profitable one.

An Advisor for Everyone

There are many different financial advisors catering to different kinds of investors, including those with few assets, which may surprise some people.

At a panel of advisors, they discussed the different compensation models to choose from – some charge one-time fees for a financial plan (that often appeals to the self-directed-investing-leaning individual); others charge fees based on assets, typically 1% yearly; and some charge commissions for individual transactions.

The Advisor Team Approach

The do-it-all professional who plans your financial future appears as quaint – and rare – these days as the old country doctor who cured all ills. Today’s good advisors can help you sort out your myriad money details by tapping a network of experts in law, estate planning, taxes, insurance and other fields.

How to Afford Retirement

The methods of building a secure retirement income, which include wise use of Social Security and amassing sufficient savings, are complex. A smart financial planner can help you do it, according to a panel of advisors.

A Week Focused on Advisors

AdviceIQ has a central credo: Everyone should have a financial advisor. But not just any advisor – a good advisor, and the right one for you. So for one week in New York’s Times Square, Sept. 15-19, our company, AIQ Inc. put on National Financial Advisor Week.

This was an intensively practical forum to inform the public about personal finance – about how to deal with matters that affect their lives, ranging from funding a retirement to paying for higher education. And about how to get the best guidance on these crucial issues.

The Rich and Their Advisors

Rich people have different problems. For the more affluent, the financial planning process is more complicated. That’s why this clientele often turns to a team of professionals.

But there typically is one central advisors to play quarterback, coordinating the efforts of such experts as accountants, real estate attorneys, estate planning attorneys, said Stephen Stabile, senior vice president and wealth management advisor at Merrill Lynch, in an advisor panel.

The Future of Financial Advice

Financial planning looms in everyone’s life, including yours. Not all money advisors are created equal, though. Does yours do the best job for you – and how can you contribute to making your own plan?

“Is your advisor asking you, the investor, the right questions? Is the investor asking the right questions of the advisor?” said Jeffrey Vivacqua, senior vice president of business strategy at the Fairfield, Iowa-based broker-dealer Cambridge Investment Research, speaking at a recent advisory panel.

Save ‘Enough’ for Retirement

Your looming retirement can change your idea of just how much money you need to save for your later years. Most important: be realistic and avoid common planning pitfalls.

“‘What’s money mean to you?’ gives most people pause,” said Eric Hutchinson, president of Hutchinson Financial in Little Rock and Bentonville, Ark., and in Texarkana, Texas, speaking at a recent advisory panel. “Most people [say] they don’t want a whole bunch of money; they want ‘enough.’ They begin to use words like ‘comfort’ and ‘peace of mind.’”

Planning Beyond Investing

Financial advisors can reach far beyond a portfolio and investments. Most people have no idea that advisors can assist with matters as diverse as estate plans and insurance, to ensuring you invest with your head and not always your heart.

“Emotions will overcome economic considerations every time,” said Tim Maurer, wealth advisor with Buckingham Asset Management and director of personal finance for the BAM ALLIANCE, speaking on a recent advisory panel.

Why You Need a Financial Coach

Advisors are coaches who see your financial blind side. Even the best, market-savvy players can benefit from having an advisor.

“You don’t know what you don’t know,” said Larry Light, editor-in-chief of personal finance site AdviceIQ, during a panel discussion for National Financial Advisor Week. He gave an example of how his advisor, Jim Ludwick of Main Street Financial Planning, got him into a free health-care program that he otherwise would probably never know he is eligible for.

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