Certified Financial Planner?

[jsmla]

We own a small business and several rental properties free and clear. We also have a savings account with quite a bit in it. We have no IRA, retirement plan from work, etc., we've chosen to invest in the business and rental properties instead and are happy with this decision. Last week we received an offer to purchase our business. My husband just turned 60 but we think we'd like to accept the offer.

My question is where should we go for advice on how to manage our monetary assets in retirement? We plan on keeping the rentals but need a plan for what to do with our savings and the money we'll receive from the sale of the business. We're investment know-nothing's! I've begun looking around and was wondering if a fee-only Certified Financial Planner is the way to go. Anyone have any experience with this?

Thanks!

 

[verleniahall]

talk to your bank - they will be able ot direct you where you need to go

 

[QueenIsabella]

Speak to your accountant about a good recommendation. He'll know who in the business is the best fit for your circumstances, and who has a good reputation.

It's not quite the same thing, but a couple years ago, my sister and her husband got a large medical malpractice settlement. The first thing the lawyer did was send them to a financial planner who specialized in medical windfalls. She ran the advice by me, just as a check, and I found it to be sound and appropriate. Well, except that I had suggested that she send large checks to her favorite sister, and she chose not to do that. Meanie!

My point is, there are specialists that are familiar with your type of circumstances, and they can give you some good advice--advice worth paying for.

 

[MillauFr]

talk to your bank - they will be able ot direct you where you need to go

I would avoid anyone at the bank. The people there may be ok but they pressured by management to sell high cost products that increase profits for the bank. These products are generally very poor choices for the customer.

 

[ceecee]

Banks and Credit Unions usually have a CFA and they do not charge you. They also have credit counselors at some credit unions that give advice WITHOUT selling...they aren't all in it for the profits and since you aren't investing they won't try to sell you anything.

 

[Jen and Ashwin]

Banks and Credit Unions usually have a CFA and they do not charge you. They also have credit counselors at some credit unions that give advice WITHOUT selling...they aren't all in it for the profits and since you aren't investing they won't try to sell you anything.

I would go to a fee-based certified financial planner. They are under a fiduciary obligation to make recommendations that are in your best interest. Other types of financial planners that you get free advice from get a commission on the products that they sell you, so they are incentivized to sell you products that make them a larger commission and they might not be the best for your situation.

http://money.cnn.com/pf/money-essentials-financial-planners/index.html

http://www.letsmakeaplan.org/

 

[pearlieq]

Whoever you hire, make sure their fiduciary obligation is to you only. Most investment firms and banks who offer planning services are more than happy to sell you whatever they have to pad THEIR bottom line, not yours.

You may try finding a CPA/tax accountant who also does financial planning. That's been the most successful thing for us because we got tired of having a planner who said "here's my advice, but you need to consult a tax professional" and tax accountants who just handled taxes. Getting both perspectives at once was helpful.

 

[ChesapeakeTechie]

I would second the recommendation to go with a Fee-Based CFP. They should give you un-biased advise based on your investment goals, not based on which product is giving them the best commission

 

[tvguy]

I think you need both a financial planner and a CPA. Actually, you should have had those people years ago if you are running a business. First, there are things you need to do before the sale of the business to reduce your tax obligations. If the business has been successful, you are likely in for a huge Capitol Gains tax on the sales price.
Then, after the sale you need a financial planner to make that money last the rest of your lives.
I have used a Financial Planner from my bank for years and done well. He charges a flat percentage management fee. The more money he makes for me, the more money he makes, and I think that is a good incentive.

 

[jsmla]

I would go to a fee-based certified financial planner. They are under a fiduciary obligation to make recommendations that are in your best interest. Other types of financial planners that you get free advice from get a commission on the products that they sell you, so they are incentivized to sell you products that make them a larger commission and they might not be the best for your situation.

http://money.cnn.com/pf/money-essentials-financial-planners/index.html

http://www.letsmakeaplan.org/

This is the way I'm leaning, thanks for the links!

 

[dcfromva]

Here is an interesting discussion on a recent show by John Oliver focusing on the retail investment industry.
https://www.bogleheads.org/forum/viewtopic.php?f=10&t=193186

One of the points made was if you have an advisor ask them if they are a fiduciary.

links to
Picking an Advisor: https://www.bogleheads.org/wiki/Investment_adviser
Fee Only Advisors: http://www.napfa.org/

 

[LAS2AMS]

Have you discussed this with your accountant? He should be able to give you some sound advice, or refer you to people who can. Many CPA firms employe CFA and PFS (the latter is pretty much the same thing).

I'm a CPA/PFS and personally I'd stick with an existing relationship rather than try to create a new one -- too many people are eager to get their hands on your money, and even fee-based CPF/PFS will push you towards products/services that generate a higher commission for them.

 

[chris31997]

I would also suggest that who ever you go with, should talk to you NOT down at you. They should make sure you understand what you are doing and why. You should be able to explain what you are investing in and why.

 

[Deb & Bill]

Talk to friends and see who they use. That's how we got our CFP.

 

[Choirmom]

I used to work for a fee-only CFP, Registered Investment Adviser. I highly recommend them in that they're fiduciary duty is to you (not a broker), and you are aware of the fees they charge up front. Many will also offer one-time financial plans, etc for a fixed fee. Please make sure and research the person you choose, as just like every profession, there are good ones and bad ones. I am an Enrolled Agent (tax professional) and the office I worked for had a CFP and tax professionals where we gave comprehensive financial services.

 

[tinkerone]

I disagree with the posts that are suggesting banks are only out for their best interest. I'm recently retired from banking and I can tell you that we want to keep your money with us and if we sell you something that only benefits us then your not going to be very happy and leave. That is why we try and find the best product(s) that are in your best interest because then you will stay a loyal client.

I would make sure that who ever you do decide to go with is not being paid on commission. I have had clients bring me their investments from other companies and have seen that some of those companies make moves with your money simply because they get paid each time they do make a move. Plus the investments they make the most comisions on are often the products that are more risky.

My advice, talk to more than one person. Talk with friends, talk with your bank, talk to investment companies that have high ratings in customer service. Then, and only then, make an informed decision. After that make sure you keep your eye on the ball. Don't assume that someone who has a hundred clients will be looking out for you every day. A good one will try but sometimes things get off balanced. Sit down with your planer and your money at least once a year.

 

[kaytieeldr]

I have some money that needs to go somewhere, and my brother advised me to watch this (warning: adult language) https://m.youtube.com/?#/watch?v=gvZSpET11ZY first.