Posts

Financial Advisor Compensation Models

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Rob Oliver explains how financial advisors get paid and suggests questions to ask advisors about how they are compensated.

Resource links:

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Please note that this blog post and video are for educational purposes only and should not be construed as advice specific to your situation. You should get advice from a legal, accounting, or investment professional before deciding what course of action is appropriate for you.

Personal Finance Links

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  1. Visit Dinkytown for free personal finance calculators.
  2. If you invest in TIAA Traditional through your employer’s retirement plan with TIAA-CREF, I suggest you read this
  3. Phased out of making Roth IRA contributions? Try the backdoor.
  4. Check out Susan Beacham’s blog if you are interested in kids and money.
  5. Vanguard recently rolled out new exchanged traded funds and a new index fund.
  6. I see eye to eye with Rick Ferri who encourages Forbes readers to buy, hold, and rebalance.
  7. Educate yourself on personal finance through NAPFA’s consumer series. It’s free but you have to register.
  8. Do bonds confuse you? You’re not alone. Learn about bonds courtesy of Vanguard.
  9. Morningstar’s Natalie Choate provides tips and traps about IRA conversions. Scroll down the page to May 4, 2010.
  10. Get credit report tips from Gerri Detweiler via the Garrett Planning Network.
  11. Rick Ferri writes about a new trend in index funds to keep an eye on.

Ideas and Links from the NAPFA Conference

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I attended the national conference for the National Association of Personal Financial Advisors (NAPFA) in Chicago this week. NAPFA is a professional organization for financial advisors who are committed to Fee-Only and comprehensive financial planning. Below are some of the new ideas and time-tested reminders that I took away from the conference.

Estate Planning

  • If you are the parent of a minor and you do not have a Will, a court will determine his or her guardian. Please prioritize putting a Will in place if you are in this boat.
  • You may need to appoint a short-term guardian in your Will if the primary guardian for your minor child does not live nearby. This will prevent your child from ending up in the care of an agency until your primary guardian arrives.
  • A presenter recommended the book Who Gets Grandma’s Yellow Pie Plate for help in determining how to divide assets in your estate plan.
  • Use an attorney who specializes in estate planning to draft your estate planning documents. You wouldn’t let your general practitioner perform brain surgery on you, so don’t let your real estate attorney draft your estate planning documents.
  • Visit www.martindale.com and www.actec.org to find attorneys in your area who specialize in estate planning.
  • Use this checklist provided by the American Bar Association to think through decisions you will need to make in your medical directives.

Property Division in Divorce

Debt Management

Healthcare Reform

College Education Savings

  • A speaker, Jean Chatzky, recommended paying for college education in thirds: 1/3 from savings, 1/3 from cash flow while your child is in college, and 1/3 from student loans taken by the student. She feels that this approach allows the student to have some skin in the game. Research has shown that students who pay for part of their tuition take college more seriously.
  • In 2011, all colleges that participate in Title IV student financial aid programs will required to have net price calculators on their websites.

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Please note that this blog post is for educational purposes only and should not be construed as advice specific to your situation. You should get advice from a legal, accounting, or investment professional before deciding what course of action is appropriate for you.

Choosing a Financial Planner

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If you are in search of a financial planner and have found my website, you can rest assured that you are on the right track. But don’t take my word for it. Writers at two of the nation’s most respected periodicals would agree.

In its article How to Find a Financial Planner, The New York Times recommends that its readers research Fee-Only financial planners at www.napfa.org and www.garrettplanning.com. The Wall Street Journal points you to the same organizations in its article, How to Choose a Financial Planner.

Why would both The New York Times and The Wall Street Journal recommend that you work with a Fee-Only financial planner? It’s quite simple, really. Fee-Only planners take on a fiduciary responsibility to act in your best interest and do not try to sell you anything other than their professional advice.

You will find Oliver Financial Planning at both napfa.org and garrettplanning.com.