Finding the right advisor is key to solid financial planning – Chicago Tribune

Given the chaos in the world, it’s tempting to just cover your head and let things take their course when talking about your personal finances. After all, everything has gone well so far. And a future full of things we can’t control is scary. Be it rising oil prices or global terrorism or AI taking away jobs, most of those big trends are beyond our control.

However, we can adjust.

time to plan

If you’re willing to consider the importance of a financial plan, the immediate challenge is to find someone you can trust to get the job done, despite the potential disruptions. This is the most important decision about your financial future. I’ve written on this topic before, and much of it bears repeating.

You don’t choose your financial advisor based on his personality, no matter how attractive, or because you “inherited” him from your parents or spouse. You don’t choose your financial advisor based on TV commercials or glossy brochures or free chicken lunches.

There is a better way to do your research, although the prospect is intimidating. After all, if you know enough about your advisor/planner to make smart decisions, you can probably do all this planning yourself! So later in this column, I’m going to give you a roadmap of financial advice you can trust. But first, you need to understand the universe of financial planning.

What advice do you need?

investment advice:For many people, this is the first step into the world of planning. After decades of a bull market, suddenly 401(k) assets have turned into real money. It forces you to think about the risk of loss, how much is enough, and the volatility of the stock market.

The best use of a financial advisor to help you invest is not in picking stocks or timing the market – but in deciding what percentage of your assets should be invested in stocks. And it helps you change those allocations as your life changes.

You’re not looking for an advisor to help you “beat the market.” That is useless. Proving this, S&P/DJI Indices just released their 2025 report showing that 79% of all active large-cap US equity funds underperformed the S&P 500 stock index! All those fund management fees go in vain for most investors! And last year, 65% failed to beat their S&P 500 benchmark.

Over the long term, stocks have created huge wealth. But his record of stock picking and market timing is less than stellar. Why pay for that?

retirement planning advice: If you’re looking for a long-term perspective on how much to save, how to allocate that savings to investments and risk, and how to strategically deploy that savings plan (an after-tax Roth or a tax-deductible retirement plan), an advisor can help you decide.

This goes beyond setting a target dollar amount. It’s also about converting some existing IRAs to Roth to generate income and reduce taxes in retirement, scheduling Social Security payments, and possibly avoiding RMDs while considering the impact on your Medicare Part B and D premiums.

Yes, it is complicated. That’s why you need a certified financial planner (CFP) who has expertise in all of these areas. But beyond that, you’ll want to get advice from someone who isn’t trying to sell you a product, such as annuities, life insurance, private equity or even mutual funds.

estate planning advice: Your advisor will work with you to plan while you are alive and to plan what will happen to your surviving family and dependents after you pass away. A good advisor will show you the impact of your estate planning decisions on your heirs – and then refer you to an attorney in your state of residence, or work with your own attorney.

How should you pay?

You want an advisor who is always by your side. Duration. That person is a fiduciary – willing to give that word in writing, and promise to always put your needs first.

And you want a consultant who has no financial incentive to sell you a specific product. So, it is advisable to select a fee-only advisor.

Full disclosure of fees should be made upfront depending on your need for planning advice. This could be a one-time fee for a plan that you will implement. Or your plan may come with counseling twice a year. Or the planner may work at a constant hourly fee with an estimate of the total cost.

Where can you find this rare advisor?

There is only one place I know that will match you with a carefully vetted, fee-only fiduciary advisor based on your needs. Created by Pam Krueger wealthramp.com Matching a select group of advisors to suit your needs. Read all about it and watch the video TerrySavage.com The bottom of the box says “Find Your Trusted Advisor.”

Full disclosure: I get nothing from this referral other than the knowledge that you are in good hands. And Pam’s fees are paid by the chosen advisors, not by the clients, as you’ll learn in the video.