Without a Financial Plan, Women's Long-Term Outlook at Risk

The Great Recession has changed our lives in many ways. One positive result is that it has helped women to become more educated about their finances. A recent study shows that 95% of women are involved in making financial decisions yet most do not have a financial plan in place and many look for help in the wrong places. Good resources to find a Fee-Only Advisor who will be a fiduciary are NAPFA or the Garrett Planning Network.

Read more in Ruthie Ackerman's July 28th article:

http://www.financial-planning.com/news/women-financial-prudential-2668099-1.html?ET=financialplanning:e1792:2120299a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Retirement_Planning_081910

How Is Your Financial Advisor Paid?

I have chosen to work as a Fee-Only FInancial Planner because I feel it is the most objective way to give financial advice. I have taken the Fiduciary Oath. Evergreen Financial Planning provides financial and tax advice on an hourly-as-needed based.

Commissioned Professionals: If you aren't sure how your Financial Advisor is getting paid, chances are thy are earning commissions. Your broker or insurance professional earns a commission whenever they sell you a stock, mutual fund, annuity or one of the many products that trigger a sales charge. Sounds like a conflict of interest to me!

Fee-Based Advisors: Fee-based professionals also receive monetary reward for the products they sell. With fee-based accounts, brokers can charge customers a flat fee or a percentage of the value of the account. Sounds like a conflict of interest to me!

Fee-Only Advisors: A Fee-Only Financial Planner does not sell securities or insurance. There is not the conflict of interest which exists with the other types of "advisors" because recommendations for investments are not made based on the size of the commission. The fee-only advisor works for you.

AUM: Some advisors charge a fee for Assets Under Management. They are compensated by charging a percentage of the market value of the assets they manage on behalf of their clients

What is a Fiduciary?

The five core principles of the authentic fiduciary standard say it well. They are:

• Put the client's best interest first;
• Act with prudence; that is, with the skill, care, diligence and good judgment of a professional;
• Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts;
• Avoid conflicts of interest; and
• Fully disclose and fairly manage, in the client's favor, unavoidable conflicts.