Free Your Financial Future with a Values-Based Plan

May 5, 2004 -- Do you know the difference between an immediate and deferred annuity? What about the investment characteristics of a high-quality long-term municipal bond? Or do you have any idea how to calculate the intrinsic value of a stock option? If not, then do you have a year or two of free time to spend learning the ins and outs of a solid financial plan? Probably not. Chances are, you dont know or care about cash flow analysis or investment returns.

For your purposes, these are just big words for money, and money is not really important in the grand scheme of things. The true importance of money is that it allows you to enjoy your life and reach your goals, like sending your children to college and retiring comfortably in your old age. If youre like most people, you dont want to have to worry about your finances along the way. Youd much rather leave that burden with someone else. But with all the different companies and people out there, how will you know whom to trust with your future?
   
You must rely on a combination of factors when searching for the right financial advisor. Use the following criteria to help you identify the right person:

Values-Based Financial Planning
Money means different thing to different people. For some it provides security, for others it allows for freedom. Your personal values of money are the most important aspects in planning your financial future because they will provide the foundation for your investments.

Values-based financial plans require a careful assessment of your financial goals and a portfolio designed to deliver those goals over a specified amount of time. For example, if you want to send your child to college in 15 years, you want to base your decisions on that goal. You dont want to make a series of unplanned investments that may or may not provide for your specific value.

When you think about bringing in a financial professional, you want someone who will keep your values in mind, not someone who will make suggestions based on current market trends. A values-based financial planner will help you build a strategy that inspires you with confidence in your future.

Salesperson Verses Trusted Advisor
At some point in your life, you have surely encountered a salesperson. Theyre everywhere: hanging around customers on car lots, calling in the middle of dinner, and set up on street corners. Unfortunately, they exist in the financial profession as well. Now all these people may be honest, good people, but theyre trained to push things on you, like extra insurance, hot stocks, or other securities that may not be in your best interest.
   
In your search for the right person, or Trusted Advisor, to handle your finances, you will inevitably run into various titles (stockbroker, insurance agent, financial planner, estate counselor, etc.) and firms of all sizes. But these labels and big-name companies dont mean anything when what you need are trust and competence. You can make assumptions, based on experience, age, and company affiliations, but in truth, there are always exceptions and salespeople come in all forms. In your decision, you must assess the individual based on a set of characteristics to weed through those out for a sale and find someone who will make recommendations based on your valuesyour Trusted Advisor.

Now, as you consider different advisors, keep in mind the sales persona. Upon meeting you, a salesperson will set to work on a series of sales techniques, such as building rapport, then probing with questions to back you into a corner. Their goal is to make sure your only way out is to buy the product they propose as the solution. A salesperson is trained to establish a need then fill it with a sale.

Everyone knows what it feels like to be tricked into the wrong decision, and when it comes to your finances, you dont have room for mistakes. But if youre prepared for each step of the process, youll be able to spot a Trusted Advisor.

Make Contact with a Trusted Advisor
On first contact, usually over the phone, the Trusted Advisor wont engage you in idle chitchat. Their time is valuable, unlike a salesperson, who will seem to have all the time in the world. The Trusted Advisor will set up a meeting to discuss your Financial Road Map, or plan, with all the decision-makers present. They will ask you to bring all your financial data to the meeting, but wont ask you to disclose any information until you are ready.

This first meeting should take place in the advisors office, not your home, a restaurant, or any other unprofessional location. Your conversation may be recorded, and the advisor should conduct the interview. Ultimately, you should be doing most of the talking, and the advisor should want to establish your needs and values.
   
A Trusted Advisor will have some boundaries with their services, and they should tell you up front if their services arent a good fit for your needs. These professionals specialize in specific types of clients, such as young couples trying to establish themselves, or wealthy retirees. However, a salesperson will be eager to work with anyone who comes along.
   
The most important clue as to whether youre dealing with a salesperson or a Trusted Advisor is the feeling you take away from this initial meeting. A salesperson preys on your fears and makes you uncomfortable and insecure about the future. On the other hand, a meeting with a Trusted Advisor will leave you inspired and confident.

Plan for Your Future
Whether youre planning your retirement or funding an education, you need a trusted financial advisor to develop a portfolio based on your unique values and needs, not a salesperson trying to swindle you into a purchase. It takes trust to let your future rest in someone elses hands. A values-based financial planner will start with your values and build a plan thats right for you. The key is to find the right person for the job. When you use these tips for spotting a trustworthy and competent financial professional, you can feel secure in your decision, stop worrying about your money, and start living the life you want.

For more information contact Chad Coe, RFC is President of Coe Financial Group, Inc. in Deerfield, IL contact him at 847 444-9444 or e-mail protected from spam bots.

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