to hire a financial
Transcript, 2 minutes 45 seconds, for use during week of April
Description: Penny, Ira, and Susan discuss hiring a financial
Announcer: Invest Wisely comes to you from Iowa State University
Extension through a grant from the Investor Protection trust,
providing investor education on the web at: investorprotection.org.
Ira: Penny several friends of mine have recommended that I think
about hiring a financial advisor. I'm wondering what a
financial advisor actually does and what advantages there would
be for me in having a financial advisor.
Penny: People choose a financial advisor for different
reasons. Some don't have the time, knowledge or motivation
to plan and implement financial strategies on their own.
Susan: Our talks have helped both Ira and me become more comfortable
with basic investing terms and knowledge, but I often wish I
had someone who could help me look at my total financial situation.
Penny: That's another good reason to think about hiring a financial
advisor. An inheritance or a complex retirement situation
may prompt a person to seek out an advisor.
Ira: Although I'm retired now, I have questions about the current
market and about handling the investments I already have so that
I protect the principal and make good decisions for the future.
Penny: It sounds like both of you might be interested in talking
to a financial advisor. Your first step should be to sit
down and define your objectives. What services do you need? What
questions do you have that a financial advisor might be able
to help you with?
Susan: Are there different types of financial advisors? Might
I be looking for someone different than Ira is?
Penny: Yes. You really have a lot of different choices
in the types of financial advisors you can choose and what they
can help you with. For instance, a registered representative,
also called a stockbroker, recommends to clients which securities
to buy and sell and earns a commission on all trades. A
financial planner considers your total financial situation to
develop a comprehensive financial plan.
Ira: Once I have my objectives in hand and have an idea of the
type of advisor I'm looking for, what's the best way to find
the right financial advisor for me?
Penny: Ask your friends and family for recommendations. But
ask them specifically why they like the person they're recommending. Check
with professional organizations like the Financial Planning Association. They
can provide names of members in your area.
Susan: Thank you, Penny. As always, your information is
Penny: You're welcome. And remember, for
more information, visit the ISU Extension website at extension.iastate.edu
and look for 'Invest Wisely.'