Mike Brandone

This is my inaugural column with "The Paper" and I want to address current topics that will have a positive effect on the readership.

In the Financial Planning World fees conjure up a number of ideas and thoughts, "What are they for," "Am I paying too much?" just to name a few. I'd like to address fees as they pertain to financial planning today.

Financial planning was born in the 1980's as a method of connecting all of a client's financial concerns and issues where an advisor would offer a series of solutions to meet these needs. This was a giant step forward from the previous mythology of offering single product solutions for individual needs not taking into account the entire financial makeup of the client.

Today, clients have so many plan types and products to choose from, it's a daunting task to choose the one plan that fits their needs. Even more challenging, once you have chosen your planning process the question still remains: did I receive the maximum value for my purchase? This even before the product sales process begins.

I'm not knocking fee based planning but like everything, this type of service has its place. If you have a complex financial situation the cost of the time and analysis should be prudent. Your plan should be structured to your needs. To pay a fee for that service is acceptable. But, if you have straight forward planning needs such as budgeting, college funding, retirement, asset allocation or savings needs, a complex fee based plan may not be what you need. Today, there are plenty of software programs you can purchase, or are free online, that generate the same results. The only differences are the individual who implements your plan. As many of our clients tell us, “we did the plan and the investment but we never saw the advisor again.” Chilling words if you have entrusted your money and your financial future.

Some tips to help you in choosing the right advisor:
First, check him or her out at www.FINRA.org. At this site you can see if the advisor has any negative marks on their record. Second, you can go to the State Insurance Department and check out the insurance record of the advisor. Third, ask for references. Fourth, ask for their investment philosophy. Fifth, if they require a fee, ask to see a sample plan with recommendation. Finally, ask how the advisors generate their revenue; salary, commission, service fees, etc. . . .

The financial planning process should be positive, effective, transparent, and ongoing for success. If not continue, looking for an appropriate advisor.

Michael Brandone, CLU, ChFC, CFP is a financial Services professional with over 25 years experience in financial planning. Mr. Brandone owns Horizon Financial Services a full service financial planning agency in Del Mar CA, He also owns Vue Insurance Services an Insurance brokerage firm in Del Mar, CA. To contact Mr. Brandone e-mail him at mbrandone@torreypinessecurities.com or call 858-259-0131, ext 313. Securities and Advisory Services offered through Torrey Pines Securities, Inc a member of FINRA.