From Here to Financial Happiness

Day Seventy Four Hiring Help

After reading this guide, some readers will feel they have the knowledge and confidence to handle their own finances. But others will want professional help, because their financial situation is complicated or because they struggle to save diligently and invest intelligently. What should you look for in an advisor? Here are five pieces of advice:

1. Don't use an insurance agent as your principal financial advisor. An insurance agent will sell you costly insurance products, like variable annuities and cash‐value life insurance, that typically prove to be mediocre investments.
2. Don't use a broker who works on commission. In many situations, brokers aren't legally required to act in your best interest – and they have a financial incentive to get you to make unnecessary trades and to sell you products that charge the highest commissions.
3. Consider a robo‐advisor if you have a fairly simple financial life. Robo‐advisors, such as Betterment, FutureAdvisor, and Rebalance IRA, typically charge low fees and invest clients' money in low‐cost index funds. Also check out the low‐cost advisory services offered by major financial firms, such as Charles Schwab's Intelligent Portfolios and Vanguard Group's Personal Advisor Services.
4. Look for a fee‐only financial planner if you have more than $250,000 in savings and your finances are complicated. While most robo‐advisors are focused almost exclusively on portfolio management, a good financial planner will assist with ...