Who To Trust With Your Future Retirement


When determining who to trust with your future retirement one of the first places you should look is in the mirror!

While most people need some help with their financial planning they sure don't need to (and probably shouldn't) just turn over their finances to someone else and hope for the best.

So, when deciding who to trust with your future retirement, you should ideally build a partnership between you and a financial planner.

As long as you take a little time to learn some basics about investing so you can have some idea if the advice you are getting makes the most sense for you, you can work with a planner and ensure your best outcome.

There are also other things to consider when you are looking for someone to help you with your investing.

For one thing, make very sure you understand just who you are hiring and what they are required to do for you.

Many people think they are hiring a financial planner when in fact they are really only hiring a broker/dealer.

What is the difference? Well, it's huge. A broker/dealer may not be working for your best interest. I know that sounds kind of weird but it is the truth.

Someone who is a broker will be working for you on a commission basis. They only make money when they can encourage you to buy or sell some sort of financial product.

While that may not be a bad thing, it can certainly open up the possibility that the choices your "planner" is encouraging you to make are more for their benefit than yours.

You need to find a planner who is only interested in you and your best interest. One way to do that is to find a planner who is a Registered Investment Advisor.

Federal law requires all RIA's to act in your best interest only. That means they are held to a fiduciary standard, not all planners are held to this standard.

This type of planner will be on what is called a fee only compensation plan. That means they charge you a flat fee and that you are paying them for their knowledge.

The fee could be an hourly rate or just based on the amount  of money you have in your portfolio.

Since they are legally bound to only act in your best interest and since they don't make any money when you buy or sell stocks or bonds, you have more peace of mind knowing that the opportunities they present you with are good for you and not just good for them.

It just makes sense to become a proactive partner in your investing.

There are many books and courses that can help you gain some basic knowledge so you will have a better idea of gauging the quality of the advice you are receiving from your planner.

Who to trust with your future retirement? You. Be willing to do your due diligence when finding the right planner to work with. Then, be willing to become a proactive partner with that planner. This is your best bet for true financial security.