This event is scheduled to begin promptly at the top of the hour. There will be no
audio until the event begins. Please download and print the presentation before the
webinar begins at
www.waepa.org/NITP_Webinar.asp
Note the widgets at the bottom of the page; the first one on the left is the media player which controls the volume for the webinar. To adjust your volume during the seminar click on this to bring up the volume control
tool. Check the volume on the computer you are using as well, and check that your speakers are on, or your headset is plugged in.
If the webinar slides fail to advance or the audio stops, try refreshing your browser during the presentation. During the seminar, communicate with the presenter and producer via the Q&A area. Enter your questions in
the Q&A area and they will be addressed during the webinar if time allows. If you are having technical difficulties with the webinar, let us know about that as well.
SELECTING A
FINANCIAL PLANNER
Karen P. Schaeffer, CFP
®
Good Data = Good Planning
1. Identify
Goals
2. Construct
Your Balance
Sheet
3. Analyze
Your Cash
Flow
Identify Goals
What are “financial goals?”
The things that you need and/or want
to spend money on – beyond routine
monthly expenses.
Balance Sheet
Take an annual snap-shot of where you are
Assets
SAMPLE
Monthly Cash Flow Items
Income
Current
Retirement
Salary
Interest/Dividends
Other
Expenses
Tax
Retirement Funds
Mortgage
Auto
Life Insurance
Child Care
Vacations
TOTAL
www.quicken.com
www.mint.com
You Might Need Help With…
• Becoming established
• Jobs and employee benefits
• Moving in with a partner
• Marriage
• Having children
• Divorce
You Might Need Help With…
• Buying a home
• Retirement planning
• College planning
• Aging parents
• Medical issues
• Estate planning
• Emergency funds
Financial Planning Helps You
• Set realistic and personal goals
• Assess your current financial situation
• Develop a realistic, integrated plan
• Put your plan into action and monitor
its progress
• Stay on track as circumstances change
• Provide direction to your life goals
Working with a Financial Planner
• Very personal relationship
• Must have rapport and trust
• Must have integrity and ethics
• Fiduciary relationship – they put your
interests ahead of their own
• Must work in a style and manner you’re
comfortable with
Why a CFP
®
Professional?
• Education
• Examination
• Experience
• Ethics
“We’ve known him forever.
I’m sure you can trust him.”
Your Self-Defense Moves
Ask your financial professional if they are a fiduciary.
Trust, but always verify.
Ask your prospective financial professional to identify
“Just sign here. I’ll take
care of the rest.”
Your Self-Defense Moves
Regardless of the paperwork burden, do not leave
blanks that someone else could fill in without your
knowledge or consent.
Ask your financial professional to send you copies of
the final, submitted documents.
“This is just for my
special clients.”
Your Self-Defense Moves
Ask your financial professional to verify—in writing—that his
employer or company supervises the investment.
Ask the employer or company directly whether it approves and
supervises the investment.
If your financial professional is a sole practitioner, verify that she
carries professional liability insurance.
Remember that investments should always be regulated or
supervised by independent third parties, with the risks and
possible conflicts of interest fully disclosed.
“I’ll send you all of the
investment reports.”
Your Self-Defense Moves
Make sure you receive regular statements from
independent third party sources.
If you invest in limited partnerships, real estate, or
non-traded securities—any investment not valued
frequently or held by a separate custodian—verify that
the investment manager is audited annually by a
“Make the check payable
to me….”
Your Self-Defense Moves
Never give a financial professional a blank check that
can be filled in later.
Refuse any request for a personal loan.
Question any situation that gives a financial
professional unlimited access to money intended for
investment (or money actually invested). That includes
giving the professional a full power of attorney for your
accounts.
“I know it’s a difficult time,
but you need to decide.”
Your Self-Defense Moves
Be suspicious of pressure tactics or sales pitches during
a major life change.
Find an advocate—a close family member or trusted
professional—to help you with truly urgent matters,
such as meeting tax or reporting deadlines.
“This one’s a no-brainer,
you can’t lose.”
Your Self-Defense Moves
When your financial professional recommends a fund, insurance
contract, or retirement strategy, listen carefully for a fair,
complete discussion of the pros and cons. Write them down. If
you’re hearing only pros, you’re not getting the full story.
Ask the financial professional under what circumstances the
investment will not perform as projected.
Make sure the financial professional focuses on your specific
needs as much as on the investment.
“I can replace that with
something better.”
Your Self-Defense Moves
Whenever you are presented with a proposed
transaction, ask, “What does this cost me?”
Always ask your financial professional, “Do you get paid
from this transaction?”
Consider whether the timing of proposed transactions
is motivating the recommendation.
Finding a Financial Planner
Certified Financial Planner Board of Standards
800-487-1497 •
www.LetsMakeaPlan.org
Financial Planning Association
800-322-4237 •
www.fpanet.org
National Association of Personal Financial Advisors
800-366-2732 •
www.napfa.org
What qualifies them to give
you advice?
How Are They Paid?
• Fees
• Commissions
• Fee and Commissions
• Fee-offset
Karen P. Schaeffer, CFP® is the Managing Member and Co-founder of Schaeffer Financial LLC, an SEC-registered investment advisory firm located in Rockville, Maryland.
This presentation is for informational and educational purposes only.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment,
investment strategy, or products made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. The views and opinions
expressed in this presentation are those of Karen P. Schaeffer. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Any
hypotheticals or examples are for illustrative purposes only and not indicative of actual results. Past performance may not be indicative of future results Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from Schaeffer Financial LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of
Schaeffer Financial LLC's current disclosure brochure discussing its advisory services and fees is available for review upon request.
