Chapter 11

Financial Planners

      Financial planners are professionals who help you define your financial goals, and then develop and execute a plan to invest your money to reach those goals. The three major areas of discussion are your retirement, children's education, and lifestyle wants and needs. Insurance, both life and health, are also explored in great detail.

      These consultants may work as independent planners, work for your bank, or be stock brokers or life insurance salesmen. They usually push the products that they represent and know best.

      Financial planners that work on a commission basis where you pay nothing for their services usually require a starting investment nest-egg of $50,000. The planner is compensated by a sales commission from the products that they sell, such as mutual funds, annuities, and life insurance. There can obviously be a conflict of interest. Financial planners that work for banks are paid a salary and you are not charged for their service.

      Some financial planners who charge you a fee for their services also ...