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June 4, 2009 — Top 5 Reasons to have a Financial Planner
“You’ll frequently see advertising or hear from friends and family that it’s important to have a Financial Advisor,” says Karen Foster of the Orangeville Branch of Meridian Credit Union “However, a lot of people are unclear as to what they do and why it is important.”
Foster offers some thoughts to keep in mind for finding and making the most of your relationship with a Financial Advisor:
- A Financial Advisor is someone trained to assist you in making decisions that help you reach your financial goals. It can involve investment planning, retirement planning, income tax planning, estate planning, credit, lending, insurance and education.
- How do they help you? A Financial Advisor may have access to a broad range of solutions or be more focused on a select product range. Their job is to sit down with you and collect all the information necessary. This includes reviewing your information, determining what possible solutions exist, recommending a solution, implementing it and then following up with ongoing monitoring to ensure that you are consistently on track to achieve your goals.
- How do you find one? Most financial institutions have generalists or specialists identified who can help you. It’s as simple as contacting them to find out. Another way is to ask the people you know and trust. They’ll give you a feel for who they work with and if that person would be a good fit for you. You can also check online, in the media or through professional associations. There are many ways to find advisors in your area!
- Okay, so you’ve found some advisors, but how do you know which one is right for you? Keep in mind that you are working to develop a very important relationship with someone, and not all advisors are the same. In today’s market, it’s very common for advisors to specialize or focus on clients with similar needs. That could be the size of your investment account, your stage in life (i.e.: retirement planning, income planning, asset accumulation), fee based planning, high net worth and more. There are also a number of different credentials you can look for in identifying the qualifications that are right for you. For example, you should consider CFP (Certified Financial Advisor), CIM (Certified Investment Manager), CLU (Chartered Life Underwriter) and FMA (Financial Management Advisor) just to list a few. You need to find someone who understands your needs and that you feel comfortable working with. Advisors cannot be everything to everybody, and it’s not a bad idea to interview a few before deciding on the right one for you. Ask around and take your time!
- Another common concern is what an advisor will need to know about you and your financial situation. In most cases, it will involve getting details on income and expenses, employment history, list of assets and liabilities, risk tolerance, goals and objectives. More detailed plans will require income tax information, insurance policies, wills and powers of attorney or financial statements from businesses owned. A comprehensive plan involves hard data as well as a discussion about your hopes, wishes and dreams for you and your family. Please note that providing limited information may lead to improper advice. The more accurate and complete the information provided, the better they will be able to find and recommend appropriate solutions to help you reach your goals. But it doesn’t end there! To help achieve your financial goals, it’s critical that communication remain open and regular so that any life changes are reflected and adjustments made to keep you on track.
About Meridian Credit Union:
Meridian Credit Union is Ontario’s largest credit union serving more than 216,000 personal and commercial Members across south-central Ontario. Meridian offers its Members access to a full range of financial services - banking, mortgages and loans, credit cards, online banking and access to Interac through its 44 branches and eight Commercial Banking Centres. Meridian Members have access to the Exchange® Network with over 2,300 no-fee ABMs in Canada. Owned by our Members, Meridian Credit Union reinvests its earnings to improve services to Members and help build the communities where they live. As one of Canada’s Top 100 Employers in 2008/2009, Meridian is committed to investing 4% of its pre-tax earnings in our communities – that’s more than four times the national average for corporate giving. For more information, please visit www.meridiancu.ca.
For more information contact:
Stacey Hellas
Communications Advisor
Meridian Credit Union
416-597-4679
Stacey.hellas@meridiancu.ca