How to: Pick A Retirement Planning Seminar

You stroll out to the mailbox to grab your mail and find that you received a free dinner invitation for a retirement planning seminar. That was so thoughtful; should you go? Maybe. Will you be sold something? Probably. It is usually good to hear what professionals have to say and it’s nice to keep a pulse on such an important topic but before you RSVP, understand who is inviting you and what they are selling:

• Insurance Only Agents: Typically sell insurance–based products such as annuities, life insurance, long–term care, etc. They get paid by selling you an insurance product. Their pay can be a lump–sum payment or over a period of time. 
  Pros: These products may be something you need as part of your comprehensive plan. 
  Cons: It’s not the only thing you need. If you receive a recommendation for a large majority or 100% of your assets to go into a "safe" investment, be very skeptical.
• Commission Advisors: Generally sell commission–based products, so ask them how they are payed. A shares and C shares are commission products and they earn a commission and trail revenue when you purchase those funds.
• Fee Based/Fee Only: These planners typically earn a percentage based on the total assets managed. Since they earn their fee based on the assets they manage, they generally have a goal of helping you increase your assets.
• Flat Fee & Hourly Consulting: These planners charge per hour or a flat fee amount. They take a second look at your retirement assets or provide a full comprehensive plan that you can follow as a guide to invest on your own.

I recently had a conversation with a colleague who was having a hard time with trust. As a Baby Boomer, she feels that they lost money in the last down market and that she doesn’t have the time horizon to make it back. She has a financial planner and is not 100% confident that her funds are in the best investments.

As the wife of an independent planner, I told her to make that phone call for a second opinion plan review. Find an independent advisor that charges a flat fee or hourly fee and have them complete a thorough review of all of your investments. An independent advisor is key. Since they don’t have proprietary products to sell, they can truly give you advice that’s in your best interest.