How to Find the Right Denver Retirement Planner for You
Googling “financial advisors near me” can give you a hodgepodge of results. You’ll find one-person operations, small firms, and big banks and brokers. But which one do you choose for your retirement plan?
Finding a financial advisor in the Denver area can be daunting. You want a Denver retirement planner you can trust to handle the wealth you have worked hard to create. Here’s a checklist to help you find the right retirement planner for you.
Algorithms vs. the Human Touch
These days, you can turn to robo-advisors for investment help. Just answer a few questions online, and poof, an algorithm builds you an investment portfolio. It’s a low-cost alternative to a flesh-and-blood financial advisor, and if your financial planning needs are limited, then it may work for you.
But we would emphasize that effective retirement planning is about more than just your investment portfolio. It is an ongoing relationship with an advisor who creates a personalized financial plan for your needs.
Your plan incorporates many moving parts, including your financial goals, retirement income and expenses, retirement plan distributions, Social Security and Medicare decisions, and long-term tax planning.
Algorithms also don’t consider your dreams for retirement. Do you want to travel the world? Do you plan to move closer to the grandkids? There is no substitute for a human relationship with an advisor who knows you and gets that your life is more than just the market value in your investment account.
Credentials
When you’re choosing a financial advisory firm, do your homework and comb through the firm’s website. Check out the “About” section to peruse the education and experience of the team members. Do the financial advisors have well-known and reputable professional designations that require rigorous training? How many years of experience in financial and retirement planning do they have?
The CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Financial Analyst (CFA) certifications are two of the most respected designations in the financial services profession for their emphasis on education, experience, and ethics. If the team has a Certified Public Accountant (CPA), you will receive tax planning expertise that many other firms cannot match.
Fee Structure
While doing your research, ask the advisor how they are compensated. Are they fee-only or commission-based, or some combination of the two (usually called fee-based)? Commission-based advisors receive commissions for the products you buy, and fee-based advisors can charge you a fee and receive a commission depending on the service. Both of these fee structures increase conflicts of interest.
The fee structure that aligns the advisor’s interest with yours is the fee-only one, and it’s the one that our Greenwood Village, Colorado financial planning firm follows. As a fee-only financial advisor, we are paid by only our clients.
When interviewing potential advisors, ask them about their fee structure and get it in writing. Also ask them if they are a fiduciary, which means they are legally obligated to put your best interests first. If they are a Registered Investment Advisor (RIA) like we are, they always have a fiduciary obligation.
Asking the Right Questions
Don’t just rely on the internet—ask your friends, co-workers, and family for referrals. With your web results and referrals in place, do your due diligence and research potential firms before contacting them. When you talk with an advisor, have a list of questions ready to help make sure they’re the right advisor for you.
You’ll want to learn about their fee structure and whether they always serve as a fiduciary. In addition, discuss your situation and what’s causing you to seek a financial advisor. Ask them how they may be able to help you.
Determine whether the service is one-time (like the creation of a financial plan) or ongoing. Ask about the advisory services you can expect to receive, such as investment management, tax planning, insurance review, and estate planning.
If they are investment managers, what is their investment philosophy? Do they time the market, or do they practice a long-term, diversified approach to your investments? How do they balance your risk and return needs? How will their service be more personalized than, say, a robo-advisor?
Finally, find out about their process of working with you. How often will they meet with you initially? When your retirement plan is complete, how often will you meet then? What if you have life changes in between meetings? Are you encouraged to reach out to them?
Consider interviewing a few financial advisors—you’ll be amazed by how much you learn about what you want in an advisor! Don’t be afraid to ask tough questions and get referrals. This is your money and your future. Take the time to find the right choice for you.
Discuss your situation with a fee-only financial advisor. Schedule a complimentary discovery call.
This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.
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