Financial Advisors
Q. I don’t consider myself all that naive about money, but with all the recent stories of financial advisors abusing their clients’ trust, my retirement seems less secure. Are there ways to avoid these scammers who especially seem to prey on seniors?
A. The basic rules of business apply. KNOW who you are doing business with — get recommendations from friends, check with the Better Business Bureau, and generally stick with the well-known, reputable companies. In addition, avoid telemarketing offers — they usually don’t have your best interests at heart. And if an investment opportunity sounds too good to be true, it probably is. Offers of huge returns almost always involve substantial risk, and in some cases are a tip-off that you’re being scammed. It’s best not to give anyone your money until you have investigated the offer. The old adage of “sleeping on it” is not a bad idea. Things often look different in the morning!
Q. I just made an appointment with a financial planner who specializes in post-retirement money management. I’d like to get the most out of our meeting. Do you have a checklist of documents I should bring? Also, what issues should I make sure get covered?
A. It will be helpful to the planner, and will save time if you bring the following documents with you:
• Recent bank statements, mutual fund statements, stock and bond ownership records
• Records of real estate ownership (including mortgage statements or records of liens)
• Insurance policies, annuity contracts
• Pension records and social security payment records
• Lists of long-term debt
• A copy of your Will or personal Trust
• Recent Income Tax returns (last 2-3 years)
• Your monthly budget or expenses
• Family information (children, grandchildren, dependent relatives)
• Any information relating to property or income
Among the issues you should cover are your income expectations and needs, the degrees of risk you are willing to take with investments, your plans for unexpected health care needs or long-term health care, and your wishes for distribution of your property after your death.
Be prepared to spend the time necessary to cover these issues. It will probably take several visits to formulate a complete plan. Also, remember to update your plans anytime there is a significant change in your situation (such as death of a spouse, health problems, change in family situations, etc.). A good estate plan is not a static thing. It should be changed as your situation changes.