Dan Candura provided these suggestions for selecting a financial planner:
Look for a certified financial planner. “But just because the person is certified doesn’t mean he or she is the right planner for you."
“Look for a person with whom you are willing to get financially naked." That is, be willing to be very candid about your finances.
Look for someone who puts the client’s interest ahead of his or her own.
Trust your gut, and ask yourself these questions: Is the person affordable? Do you trust him or her? Do you like the person? Are you willing to do things that will make a difference? Is he or she respectful of you?
“Teachers are not financially-savvy and not investment-oriented. They are savings- oriented."
With stock market dips making everyone a little queasy, Candura and Marilyn Capelli Dimitroff offered some general advice for managing money and investing.
Save
Live within your means
Pay yourself first -- set aside 5 percent to10 percent of your paycheck for your own needs.
Set goals. “Work on about five goals at a time -- it’s better than having too many," Candura said. “Focus on what’s important."
Diversify your investments. “Make sure you have a globally diversified portfolio and wait it out," Capelli Dimitroff said. “The market [turmoil] now makes us feel the need to do something, but it is better to wait it out."
Candura agreed. “Not all stocks are the same. You need to spread investments across large and small companies. Put no more than 20 percent in any category. That way if something bad happens, you can’t get hit that hard, and you’ll wish you had bought less of something. If something good happens, you won’t do spectacularly, but you’ll wish you’d bought more of something."
ADDITIONAL RESOURCES
The NEA offers the Valuebuilder program , which allows members to do a five-minute retirement check-up and seek investment assistance online or with an advisor. “We have agents all over America who can help with retirement. We are also developing a phone center-Internet-based program supplemental to agent work," said the NEA’s Barry Hudson. NEA members also can order the booklet, Healthy, Wealthy, & Wise: The NEA-Retired Guide to Maintaining Financial Security.
Save We Must: Tips for Building Financial Security
