Finding someone you trust can be difficult in this hot industry
Dear Savvy Senior,

Can you give me some advice on how to choose a financial planner? My wife and I are in our fifties and need some financial advice on what we need to do to prepare for our retirement. What can you tell me?

Financially Inept

Dear Inept,

Financial planning has become a hot industry in the United States. But with all the different financial advisers and services available today - how do you choose a trusted professional that can meet your needs? Here are some suggestions to consider.

Choosing a Planner

A good place to start looking for a savvy financial adviser are with those who hold the title "certified financial planner" or CFP. To earn the title, CFPs must take a wide range of personal finance courses, sit for a two-day exam, practice for at least three years after taking the exam, and keep up with their education. They're taught to look at the "big picture" view of your finances - talking you through your goals, as well as advising on the details of your financial life.

When looking for a CFP, be prepared to find an alphabet soup of other titles and designations such as certified senior specialist (CSS), retirement plans associate (RPA), certified retirement counselors (CRC), certified senior advisor (CSA) and many others. In fact, there are more than 60 different certified-this or registered-that designations that provide various financial services. Be alert however that some certifications require no more than a few one-hour courses at a seminar or online, which means they're not worth much. If you're considering a financial planner with various certifications, be sure they are also a CFP. To get a listing of the different certification designations and their prerequisites, visit the National Association of Securities Dealers Web site at www.nasd.com. When you get there click on Investor Information, then Professional Designations.

Fee-Only You're probably better off hiring a CFP that's a "fee-only" planner, verses one who earns a commission by selling you financial products. Fee-only planners charge only for their services - for example you might pay $100 to $200 an hour for a financial tune-up, a flat fee per project, an annual retainer or 1 percent of assets for money management. Also note that some planners call themselves "fee-based" or feeoffset," which means they charge both fees and commissions. You're better off with planners who sell no products at all. Here are some resources to help you find a fee-only CFP:

The National Association of Personal Financial Advisors: Offers a fee-only membership directory of over 1,000 planners. To find a local member, visit www.napfa.org or call 800-366-2732.

The Garrett Planning Network: A network that currently includes about 250 feeonly planners throughout the U.S. They offer hourly asneeded advice and tips to anyone regardless of income level. See www.garrettplanning network .com or call 866-260-8400.

Certified Financial Planner Board of Standards: Offers a national directory of its more than 50,000 CFP professionals. To search for a CFP in your area visit www.cfp.net or call 888-237-6275. Once you locate a few planners, you'll need to call them to find out how they charge.

Savvy Tips: When searching for a CFP, look for one with at least five or six years' experience. Some other areas you'll want to check into is their professional background, education, what kind of client they typically work with, how they charge and how much, and their disciplinary history. For resources and tools to help you research a CFP visit www.cfp.net or call 888-237- 6275 and ask for the free "Financial Planning Resource Kit." And, if you're in the market for investment advice, be sure to hire a CFP that is also a RIA (registered investment adviser). To research investment advisers or firms, visit www.sec.gov and click on "Check Out Brokers & Advisers." Or if you're researching a stockbroker see www.nasdbroker check.com or call 800- 289-9999.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit www.savvysenior.org. Jim Miller is a contributor to the NBC Today show and author of "The Savvy Senior" books.

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