There are many places a widow can look to get competent financial advice after she has lost her husband. These might include bank personnel, brokerage personnel, attorney, accountant, financial planner, insurance agent. The divorcee who has been part of the family financial decisions, and was actively involved in executing such decisions, probably came in contact with several of these people in the past. Such a divorcee probably has a fairly good handle on her financial situation and now knows who to contact to make any necessary changes. She also is probably aware of who she can trust and who she cannot trust based on prior meetings and conversations.
On the other end of the spectrum, is the widow who is near destitute. She is left with little or no assets now that she is alone and possibly unemployed. Such a widow is not very concerned about doing paperwork to transition accounts, nor financial planning 10 years out. She is worried about how she is going to put food on the table next week. This unfortunate widow is more in need of the state and county agencies which may be able help her locate funds. She might also try her local church to request support.
The third type of widow may have sufficient funds to give her a fairly good standard of living. She may have to work to make ends meet; however, she is not destitute. The issue with this widow is that her husband always handled all financial matters and she handled all home matters. This widow, while possibly needing long-term financial planning advice, is more in need of near-term advice on what action she needs to take and which institutions she needs to deal with to get her finances in order. She has never dealt with any of the financial personnel noted above and she may not even have their phone numbers. The question becomes where she finds competent financial advice that she can trust without having it cost a fortune for such advice. Some women ask family and friends for advice; others will search a number of avenues to get trusted advice.
What to look for in a Trusted Financial Planner
The simplest way to get good advice, apart from starting with your attorney, is to seek out a financial planner you can trust. Most articles that are written about the subject address this by looking at the credentials of the financial planner. Is the financial planner a certified financial Planner (CFP) or a Chartered Financial Consultant (CHFC)? Either designation means that the planner has passed certain requirements to receive such designation. Either designation also satisfies the educational requirements of most state registered investment advisor requirements, such as the New York. The articles will then go on to state why these people are qualified as financial planners. Such articles never really deal with the issue of trust at a reasonable cost.
Qualified financial planners are not hard to find. You can look through the phone book or you can do a Google search. However, many of the planners may work for larger firms whose objective is to bring in revenue. Many of the firms use commission based products which will bring in a commission on any recommended products. Even the small firms may recommend to you that they do a full financial plan, which may be warranted; however, the cost may be upwards of $2000 for such plan. Ongoing advice may cost $200-$400 per hour. Even if the widow agrees to pay for this advice, it is still just advice. The widow is still the one who will have to walk into the bank to change her bank accounts.
After accomplishing the name changes, odds are that the bank personnel will then start making various types of sales pitches to the widow, including new types of accounts, investing in mutual funds, taking out certain loans. The widow is still faced with the decision of who to listen to. If she is advised by the financial planner on certain types of insurance, and he is a commission based planner, he will get a commission or referral fee from any new policies she buys. Once again the widow will have to sit there and try to decide if she trusts the person and is she is getting good advice. Essentially, she may not be any more confident and comfortable than before she went to see the financial planner.
Where Widows find a Trusted Financial Planner in Nassau and Suffolk Counties on Long Island
While I do recommend starting with a financial planner, there are several points I would make which should help in finding a trusted Financial Planner on Long Island and making you more comfortable with your eventual choice of the person.
Look for a "Fee-Only" financial planner. Such a planner’s only compensation is the fee that he charges you. He receives no commissions or referral fees for any products that he may recommend for you. Therefore, you can be assured that the person who is recommending a product is not doing so to get a commission from the sale.
Will the planner charge for a full hour consulting time each time you call? Here you are being overcharged. The planner should be willing to answer a simple question with a very nominal or no fee. Will this planner answer any question 24/7 for a set monthly charge so you know you always have cost effective advice nearby?
Look for a very small firm, preferably a one-person firm whose owner is in his 50s or 60s and has retired from a long career in finance. Most probably this person is now doing financial planning to supplement his retirement income. This means that he will probably want to take you on as a client without having to charge an exorbitant fee so that he can make a living. It also means that this person is probably going to be more available to you when you need him since he has many fewer clients than large firms. He also does not have any revenue objectives to make this month from new clients. Essentially, such a person can be there for you and give you unbiased advice at a cheaper cost.
Do a Google search by County, which on Long Island is Nassau County or Suffolk County. On your keyboard, hold down Control Key and Left Click your Mouse on the following terms, or put the terms in the Google Search Bar:
Scroll through several pages and look at each firm with whom you may think will be the best fit with the characteristics you want in a financial planner.
Meet with the planner for an hour or so. This should be done at no cost to you and is merely a meeting so that you can listen to the planner, look at his credentials and get comfortable with him.
Ask specific questions that concern you. How often can you contact him? Are you going to be charged for a full hour of advice if you only have a simple question? Will he come with you to financial institutions to assist you changing your accounts? Is he available 24 hours a day if need be?
Get comfortable – Do you get that feeling that the planner will be there for you, will not charge you for an hour's consulting time when you only have a simple five-minute question, will come to see you whenever you need to talk in person, will go with you to do whatever financial chore you need to get done, will do paperwork for your review without your having to give him Power of Attorney? Essentially, do you feel good about the person? If you do not feel comfortable, go back to Google and keep searching.
My Financial Planner 24/7 does exist
The person you envision as a trusted financial Adviser is out there. You will find this person if you focus on a small firm with an older, semi-retired owner who is a fee-only financial planner. When a friend asks you who you use for advice, you want to be able to say "My Financial Planner 24/7." Keep looking, the person does exist.
Peter Owen - Peter B. Owen, ChFC, CLU, FLMI, CRSP, CISP Peter is President of Trendline Financial Solutions, a family Financial Planning Practice ...
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