Military Officer - January 2007 - (Page 42)

financialforum Advice Wanted Financial advisors are a dime a dozen, but narrowing the ﬁeld to the one that’s right for you can be difﬁcult. Phil Dyer, CFP, explains three key elements to ﬁnding your perfect match. W Don’t Just Take Their Word for It Learn about your planner’s work history online: ■ National Association of Insurance Commissioners, www.naic.org ■ National Association of Securities Dealers Regulation, www.nasd.com ■ North American Securities Administrators Association, www.nasaa.org ■ Securities and Exchange Commission, www.sec.gov hat do the terms “ﬁnancial advisor,” “ﬁnancial planner,” and “ﬁnancial consultant” have in common? Two things, actually: (1) They are commonly used to describe those who deliver personal ﬁnancial advice, and (2) virtually anyone can call themselves a ﬁnancial advisor, planner, or consultant with very little training. By some estimates, there are now nearly 1 million people dispensing ﬁnancial advice or selling ﬁnancial products through banks, brokerage houses, insurance agencies, and independent ﬁnancial ﬁrms across the country. There also has been an explosion in ﬁnancial designations — more than one hundred at last count — creating a confusing alphabet soup of qualiﬁcations that consumers now must wade through. So how do you choose the right ﬁnancial planner? Three key elements to consider are qualiﬁcations, experience and background, and personal rapport. Qualifications. Not all ﬁnancial designations are created equal — some require intensive study, passing a rigorous exam, qualifying work history, and extensive continuing education to maintain certiﬁcation; others can be conferred simply by attending a one-day course, passing a short quiz, and paying a nominal fee. Consider looking for one of the following: CFP, ChFC, CPA/PFS, chartered ﬁnancial analyst, or registered ﬁnancial consultant. You can ﬁnd out more about various ﬁnancial designations at: http:// apps.nasd.com/datadirectory/nasd/ prodesignations.aspx. Experience and background. Every ﬁnancial planner was “new” at some point, but you might not want a brand new planner, particularly if your situation is complex. Request the planner’s Form ADV, Part II, and Schedule F, which describe the planner’s work history, qualiﬁcations, and compensation methods in detail. You also should ask about the planner’s regulatory history, how he or she is compensated, and how the process works so you know what to expect going forward. Personal rapport. Qualiﬁcations and experience should be key considerations, but also look for someone you will enjoy working with, especially since you will be sharing intimate ﬁnancial and personal information with him or her. However, don’t let a charming personality overshadow the need for competence! Both the Certiﬁed Financial Planner Board of Standards (www.cfp.net) and National Association of Personal Financial Advisors (www.napfa.org) have printable questions and checklists to help you choose the ﬁnancial planner who is right for you. These are just some of the resources available to help you avoid costly mistakes. MO — Former Army Capt. Phil Dyer, CFP®, is deputy director for ﬁnancial education, Beneﬁts Information. To ﬁnd a ﬁnancial planner near you, contact Garrett Planning Network at (866) MOAA-GPN (662-2476) or www.moaa .org/garrett, or visit www.moaa.org/ﬁnancial center for other resources. PHOTO: GREG SCHALER 42 MILITARY OFFICER JANUARY 2007 http://apps.nasd.com/datadirectory/nasd/prodesignations.aspx http://www.naic.org http://www.nasd.com http://www.nasaa.org http://www.sec.gov http://www.cfp.net http://www.napfa.org http://www.moaa.org/garrett http://www.moaa.org/garrett http://www.moaa.org/financialcenter http://apps.nasd.com/datadirectory/nasd/prodesignations.aspx http://www.moaa.org/financialcenter

Table of Contents Feed for the Digital Edition of Military Officer - January 2007

Military Officer - January 2007 Contents From the Editor From the Chairman Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Cover Story: Osprey Rising? Battlefields of the Great War I Resolve ... New Mission Pages of History Information Exchange Advertising Index MOAA Scholarship Donors MOAA Member Services MOAA Calendar Sounding Taps Member Books Encore

Military Officer - January 2007

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