Ask Jean

Ask Jean Thursday: Readying for Retirement

Posted by Jean

“I am 56, my husband is 54. We would like to retire in the next 5-10 years. We want to find a financial or retirement advisor in our area but don’t know how to begin to find someone. What’s the best way to go about this, and what qualities should I be looking for?”

-Susan, Maryland

Often times the best way to start looking for a financial or retirement advisor is as easy as picking up the phone and calling a close friend or family member.  “Start by asking your friends, family and colleagues which advisor they trust and use,” suggests retirement expert and author of “Retire in a Weekend,” Bill Losey.

If you’re not comfortable with letting your friends and family in on the fact that you’re looking for financial help, I suggest starting your search on the Certified Financial Planner website or the site of the National Association of Personal Financial Advisors (NAPFA), the fee-only planning association.  On these sites, you’ll be able to search by zip code for an advisor in your area.  You’ll also find suggestions for questions to ask when meeting with potential advisors.

As you meet with the potential advisors—and Losey suggests that you should meet with at least three before deciding on one—there are certain traits you should be looking for. Before you sign on with one, make sure they meet Losey’s requirements:

• Is the candidate a CFP? (Certified Financial Planner)
• Is he or she fee only?
• Do they have ten or more years of experience advising?
• Do they specialize in retirement planning (working with people ages 50-70)?
• Are they independent and objective?
• Do they have less than 125 clients?
• Is their investment management fee less than 1%?
• Do they proactively communicate with their current clients at least once a month?
• Are they a good listener?
• Do they talk in simple language?

You’re also going to want to find out how they get paid, and how much the relationship will cost you.  While meeting these requirements will likely put you in the hands of a capable financial advisor, the most important thing to remember is that you have to feel comfortable speaking with and taking the advice of anyone who has a hand in managing your money.