General financial planning Flashcards
1
Q
What are some of the considerations for choosing a financial planner?
A
- How the advisor is compensated. Look out for conflicts of interest such as commissions earned on products sold (which might encourage the sale of a less than ideal product) and assets under management fees (which might encourage maintaining stocks and bonds and ignoring annuities).
- Does the advisor use a holistic approach? Issues surrounding budgeting, investing, annuitization, taxation, insurance, estate planning, and more should be molded into a customized plan.
2
Q
Discuss the implications when the spouse or partner who manages finances dies first.
A
In the absence of a written financial plan, or when the spouse or partner has not been included in the management of finances, the survivor may find it difficult to impossible to handle things.
