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Hiring Checklist – 5 Vital Interview Questions for a Financial Planner

Bill — Mon, 28 Nov 2011 03:52:04 +0000

There are a number of reasons why you would consider hiring a financial planner in San Francisco. Maybe you want to plan your retirement, minimize estate taxes, save for your children’s education, or seriously invest. With the help of a skilled advisor, you can indeed secure a financial future.

Hiring a financial planner is similar to contracting other professionals. The same rules apply. You investigate, do a background check, and put together a list of target questions. The answers can provide you with all the details you need to come to an informed conclusion. If you do not know where to start, here are five sample hiring queries.

How much experience do you have? The financial planner should give a brief work description. Do the skills relate to the services you are looking for? Find someone with several years in the field. They will know how to handle recessions and declining stock markets better.
Which qualifications can you offer? Find a CFP (Certified Financial Planner). It would be best if your expert is also a Certified Public Accountant (CPA) with a Masters of Science degree in Taxation. This includes tax and estate planning. Ask what a financial planner in San Francisco does to stay up to date on field-related changes.
What services do you provide? The longer the list, the more assistance you can expect, now and in the future. The advisor should at least offer retirement planning and investments, representation, compliance and tax preparations, organizing retirement distribution, estate planning and settlement, wealth growth forecasting, financial aid consultation, and college admission advice.
When do you work? The business hours should be extended during the week. The office should be open on Saturday’s as well so you do not have to take time off work every time you need to discuss financial matters with your financial planner in San Francisco.
How much do you charge? Find a fee-based management firm. Initial consultations should be free.

Can I Really Benefit From a Financial Planner?

Bill — Fri, 25 Nov 2011 04:55:08 +0000

Many people benefit from the services of a financial planner in San Francisco. These individuals are convinced that a Certified Financial Planner (CFP) can vastly improve their monetary situation. The expert can also advise them on retirement planning, investments, wealth management, and much more.

Although financial advisers have proven their value in the community, you may still be pondering if you could benefit from employing one. To make your decision easier, simply review the services these experts have to offer.

1. The only way to secure a future financially is by understanding your situation. After assessing all the information you provided, the CFP will put together a realistic plan. It will include every action you can take to achieve economic security.

2. A financial planner in San Francisco calculates how much you need to save to enjoy a carefree retirement. Only 33 percent of an average citizen’s retirement funding is supplied by Social Security. This means that you have to provide the rest through employer sponsored plans, personal savings, investments, and other income sources.

3. You will be advised of great financial opportunities.

4. Because of all the financial preparations you made after following your planner’s suggestions, it will be much easier to deal with life changes.

5. A nest egg is useful when financial mistakes have been made, or during unexpected circumstances that require a lot of money.

6. Trouble with your mortgage? Talk to your financial planner in San Francisco.

7. Have you been thinking about what will happen with your savings, bonds and investments after you die? A financial advisor knows a thing or two about estate planning.

8. Need to plan your taxes? Simply talk to the financial advisor. He can guide you through all the mumbo-jumbo. Ask which charges can improve your tax situation?

9. He will revise your personalized plan to accommodate a change in your goals, new financial opportunities, adjustments to tax laws, and shifting personal circumstances.

10. The CFP will monitor your progress, and make suggestions to help you reach your objectives faster.

Stock Broker Comparison – Critical To Your Investments

Bill — Sun, 19 Jun 2011 05:20:11 +0000

When coming up with a stockbroker comparison, it is best to keep your investment requisites and needs as the primary criterion. For instance, you could be prepared to compromise on extra fees when it comes to non-active accounts and excessive trading charges however, customer support should be top-notch. Each investor ought to undertake stockbroker comparison prior to plunging into your wealth-building exercise. Do not forget that the right selection of stockbroker is a vital facet of achieving success as a share investor for several reasons.

Speak to a number of stockbrokers and create a stockbroker comparison, prior to you making a conclusion. Be honest regarding the level of investment you intend to do. Notify the stockbrokers concerning particular professional services you are looking for and see if they are competent at meeting your business needs. You ought to trawl the online world for additional web based broker agents, assess them according to your individual requirements, and judge the one, which fits your needs.

Do you wish to get the best feasible investment agent to manage your requirements and demands? If you do, you may make the most of the stockbroker comparison made available online. Find out names of several skilled brokers look at their rankings and available expenses. Make certain that stocks brokers possess the essential permits and qualifications, prior to starting doing business them. Inquire further concerning their own strategy to investment as well as their process for making decisions. See whether they will be dealing in the merchandise or services for any business, in which they have a stake.

Comparisons in between stockbrokers may be done by preparing the prerequisites of your investing style. If you are seeking to buy and sell often and employ a web-based stockbroker, you may checklist your needs in a spreadsheet and systematically examine every prerequisite. In most cases, most web based broker agents have preferred to turn into discount broker instead of full-service agents who give investment recommendations.

At one time when full-service broker agents had been the sole choice you had, however the market seems to have matured and also the levels of competition has increased to a point your business linger on the best done from a comparison of broker service.
More information on getting a stock broker comparison can be retrieved at the author’s website.

Why Buy Variable Over Universal

Bill — Mon, 07 Feb 2011 21:19:08 +0000

If the choice between life insurance policies came down to variable versus universal life, which would you choose? Your answer to that question will probably depend upon your basic understanding of each type of policy, as well as where you are in your life cycle at the present point in time. Each type of policy requires a different mindset with respect to risk and reward and the type of security that any individual needs to feel comfortable in his or her estate planning. There are, however, some serious reasons why variable life insurance is a better option for most people, and why it provides significantly more by way of benefits than its universal competitor.

Head to Head

Each, of course, has its own particular set of advantages and drawbacks. Variable life insurance is perhaps best known for its ability to produce high returns on investment, as a result of the cash value portion of the account being invested in stocks, equities, and bonds. Universal, while still superior in earning capacity to most whole life plans, simply cannot offer the high investment returns provided by variable accounts. Of course, universal life is less risky than variable, but some element of risk is inherent in all opportunity for return.

The bottom line on each is simple: both offer varying degrees of investment return, and both are generally considered better investments than whole or term life insurance. For those who seek the highest opportunities for dramatic returns, however, most analysts agree that variable life is the way to go – particularly for those who are younger and thus have the luxury of looking at their estate planning as a very long range program. With younger policyholders, the ups and downs of various investment opportunities tend to be less noticeable over time than with someone who is in the latter stages of life and looking for the most secure investment opportunities.

Best Variable Features

In addition to the greater potential returns on investment, variable life also compares more favorably to universal with respect to the consistency of premium payments. Universal premium costs can fluctuate wildly, since they are tied to interest rates. In times of low rates, those costs can be dramatically higher than periods in which interest rates are maintained at a high level. Since interest rates are currently – and have been for some time – historically low, the cost of maintaining universal life insurance is higher than it may be at some point in the future. Variable life is not tied to this macroeconomic factor.

In short, variable life is the preferred choice of many whose perspective extends several decades into the future, and who can afford to be patient with their investments. Despite the greater safety involved in universal life policies, those policies simply cannot provide the strong investment opportunities incumbent within the variable life structure. As a result, variable life insurance policies can be expected to provide greater cash and death benefit awards to one’s heirs – and that is, after all, the primary reason for having life insurance.

How to Allocate Funds inside a Variable Annuity

Bill — Mon, 07 Feb 2011 20:44:09 +0000

The biggest advantage to variable annuities is that many of these vehicles allow their owners to allocate funds within them. This means that an annuity owner can decide what funds invested in the annuity can be spent on.

Allowing annuity holders to allocate funds is a means of reducing risk from the annuity. This is supposed to keep a person from suffering losses in case the value of a particular stock or investment fails. It is also designed to help annuity holders lessen the risks from inflation.

The allocation of funds within an annuity will usually be determined by the kind of annuity a person purchases. There are a number of different annuities available and some of them give owners more control over fund allocation than others. Not all variable annuities give owners complete control over fund allocation.

Types of Variable Annuity and Fund Allocation

The first choice an annuity holder will have to make about fund allocation is the amount of funds that will be fixed and the amount that will be variable. There many annuities that allow a person to decide what level of the funds can be variable and what can be fixed.

The fixed funds will pay out at a fixed rate while the variable rate will be based on the value of the investments. Persons who do not like the risks associated with the market should put most of their funds in a fixed rate. Individuals concerned about inflation should invest most funds in variables because the market usually beats inflation. Keep in mind, its smart to lock in your fixed annuity rates early because rates go up and down fairly often throughout the year.

There are also EIA or Equity Index Annuities where most of the funds are invested in a fixed rate Annuity and some in an index annuity. The amount invested in each of these vehicles should be based on the level risk a person is willing to tolerate.

Fund Allocation in Deferred Variable Annuities

The best strategy for an individual or couple using a deferred annuity to save for retirement would probably be to invest as much of the annuity in investments with a higher return. The annuity owner should do this because any gains they make in the market will be reinvested in the annuity.

This could give the holder a higher stream of income from the annuity upon retirement. There will be more income because the annuity will be larger and capable of a larger payout. Persons who are more risk tolerant will often be able to do better with such an arrangement.

Allocating more funds in the variable portion of annuity can help it grow faster. This means that annuity holders should be willing to take some risks. Something to consider is that funds in annuities are not taxed until they are dispersed. That can help a person avoid taxes on investments.

Another reason why a person should consider investing more in variables is inflation. Rising costs will mean that persons will need more income for retirement and increasing the return from a variable annuity can provide some of that income.

Other factors that can affect fund allocation can include the performance of other investments. If a person’s other investments are doing well he or she should definitely consider concentrating on fixed annuity investment in order to reduce risks.

Invest easily, avoid the tax man

Bill — Fri, 17 Sep 2010 15:30:05 +0000

Saving for retirement is tough. It’s already hard enough to get to the end of the month before you get to the end of the money. Then you have to put that money into savings rather than spend it on a well-deserved vacation. Then you need to figure out how to invest it properly. Then you need to leave it there until it’s time to retire without letting the market freak you out. And then Uncle Sam wants his share!

It doesn’t need to be that way. You can make investing easier, and avoid taxes, by following a few simple steps.

First, if your employer offers a retirement plan, sign up for it. This is great because the money is taken out of your paycheck, before you ever see it. It’s also taken out before the tax man ever sees it, so you never have to pay taxes on it until you start taking disbursements after you retire. Once you have an emergency fund taken care of, you should be funneling as much money as possible towards your retirement plan until it’s fully funded.

If you’re up for a little more work, once you’ve maxed out your employer contribution on the 401(k), switch your investing to a Roth IRA. Whereas the 401(k) is funded with pre-tax dollars and then taxed later, a Roth IRA is funded with after-tax dollars and then never taxed again. The question of which is better, 401(k) vs Roth IRA, can be debated endlessly, but the author tends to default to the IRA in most circumstances. Of course, investing in either is much better than not investing at all! Once the IRA is maxed out, go back to investing in the 401(k) until it is full as well.

What should you invest in? Well, that’s the most complicated part, and yet the simplest. You can read any number of opinions as to what’s the best investment to make, but here’s an easy one: pick several major mutual funds, one each of several types (such as a growth fund, an international fund, and a small cap fund) and then leave them alone. No stress, no worries, and you’ll probably do better than 90% of those who actively manage their portfolios!

The Best Investments for Young People

Bill — Mon, 01 Feb 2010 20:59:59 +0000

If you’re going to investing for a long time before you use the money, you can afford to take more risks. This is why young people, whether investing for retirement or not, can take on more risk. A person that is 25 years old and 40 years away from retirement has more time to fix mistakes and make back losses than a 50 year old who only has 15 years. As you get older, your investments should get more conservative.

If you are young, take risks. The more risks you take now, the more rewards you’ll be able to enjoy in the future. This doesn’t mean getting to the point of gambling, it just means thinking more in terms of a higher return. You need to figure out what amount of risk you are able to take and only go that far.

Stocks are riskier than bonds. If you are nearing retirement, you should have a lot of your investments in bonds. Since you are young, you can have most in stocks. If you are in your 20s, 100% in stocks is actually a good idea if you want to earn a lot. Remember, it’s not just stocks vs. bonds that makes the difference in risk. You can invest in risky stocks and conservative stocks.

Older, more stable corporations such as Disney are less risky, but you won’t earn as much money. They also tend to give more in dividends. These are better for older people, but you can include some in your portfolio for some stability if you like. When you learn to invest, you must keep these things in mind.

There are many other investment types out there. It’s hard to say that one specific type is better for a younger person than another and which are the best investments. Age-wise it’s just a matter of risk. You take more risk when you’re younger. If you want to invest in foreign currency instead of stock, go for it. Just make sure you have a great strategy and plan set up to follow. Learn to invest properly, follow your strategy, invest more money, never give up, and you have a recipe for success no matter what your age.

Cheap Stock Trading

Bill — Tue, 13 Oct 2009 16:37:43 +0000

For some reason a keyword that is commonly searched to reach my site is invest 5 dollars. Now I don’t know if people are looking for stocks under 5 dollars (penny stocks) or they only have 5 dollars to invest, but either way cheap stock trading is a very hard way to go. The numbers are stacked against you. However, if you’re looking for the cheapest online stock trading then you’ll probably have a hard time beating $7 a trade that’s unrestricted. I’m pretty sure Sharebuilder still does $4 trades, but they have an odd execution platform. Generally they don’t trade all the stocks and they have set buying window, definitely geared for people with a very long term mindset.

If you’re looking for cheap stock trades you could always look at buying way out of the money (OTM) options or puts. On a really volatile stock you could buy options for .05 per 100 ($5 per option plus fees) and the minimum they could move is a nickel so you lose it all or double your money. Trading the Nasdaq index (QQQQ or “the Qs”) was very popular in the late 90s early 2000.

Your other option is to buy one share of a cheap stock, but with trading cost this is only worth it if your buying a gift for a friend, not as an investment.

The bottom line is even with cheap stock trading online cheap stock trades just aren’t cheap. Cheap stock trading just doesn’t exist you have to have enough money to handle the ups and downs, market maker spreads, commissions, taxes, and make it all worth your time. I’m very hard on these costs because I think most new stock market investors overlook these and they don’t realize how much they eat into their returns. I want you to win. If you’re looking for a way to invest your five dollars please put it in your savings account, pay it on a debt, or put it in a retirement account and when you’ve saved your first $1000 then it’s time to start looking how to trade.

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