Magazine article Drug Topics

Choosing the Right Financial Planner for You

Magazine article Drug Topics

Choosing the Right Financial Planner for You

Article excerpt

CHAINS & BUSINESS

Q: What should I bo looking for when searching for a reputable financial adviser to work with?

A: There are many types of financial professionals out there. Look for someone who is independent, not obligated to sell products from one manufacturer. This helps in acquiring objective advice from your advisor.

Also, look for someone who is willing to specialize in you and knows the concerns of someone in your profession and income bracket. If you had a heart condition, you wouldn't seek the care of a general practitioner - you would look to a cardiologist, right? Finally, understand how the advisor gets paid.

Some work on a fee-only basis, some earn commissions through product placement and others are paid both ways. Equally as important, find someone you enjoy working with and share similar values and philosophies. You could be working with this person for 30 or more years. You want to be able to have some fun as well.

Q: At what point does it make sense to save versus pay down debt?

A: Generally speaking, follow an 8 percent interest rate rule. If the debt you are carrying has an after tax net cost of 8 percent or less, typically student loans and home mortgages, this can be "friendly debt" and you may be better off paying the minimum payments toward that debt and saving or investing the difference.

If the interest rate on the debt is more than 8 percent or the debt is tied to a depreciating asset, such as an automobile, it is generally advisable to pay down that debt more aggressively. …

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