UW -Sheltered Annuity (TSA) 403(b) Program awarded bythe CertifiedFinancialPlanner Board common are CertifiedFinancialPlanner (CFP) accredited coursesofstudy. Twoofthemost planners canearndesignations bycompleting to providegoodfinancial service.Financial the personyoutrustwith yourmoneyisqualified oneself a“financialplanner,” somakesurethat requirements thatmustbemetinordertocall There arenominimumlicensingoreducational , andestateplanning. coverage, -termcareneeds,andtax, advice butalsoofferingoninsurance whole picture,notonlyprovidinginvestment .Othersmaylookatthe as ,estateandtrustplanning,or in aspecifictypeoffinancialplanning,such meet yourfinancialgoals.Somemayspecialize and designacompletestrategytohelpyou generally lookatyouroverallfinancialsituation called financialadvisorsorconsultants) other financialadvisors.Financialplanners(also Some firmsofferateamofinvestmentand who islicensedtoprovideinvestmentadvice. also astockbroker,CPA a financialplannerwhois offer acombinationofskills: attorneys. Someadvisors agents, ,and financial planners, from financialinstitutions, , representatives Investment Advisors(RIAs), many, includingRegistered itself. Yourchoicesare needs isanimportanteducationprocessin Finding theadvisorwhobestmeetsyourfinancial help you yourself, anobjectivethirdpartymaybeableto have thetimeorexpertisetotacklethesetasks investing yourmoneydifferently.Ifyoudon’t eachyearorwhereyoushouldbe how muchyoucansafelywithdrawfromyour but nowyou’reabouttoretire,andyouwonder able tohandleyourinvestmentstrategyjustfine, at anewjunctureinlife.Perhapsyou’vebeen may beabletodothisyourself.Butyou Depending onyourbackgroundandgoals,you and establisharealisticplantoreachthem. because youhavetakenthetimetosettargets you’ll reachyourlong-termfinancialgoals, Having afinancialplanincreasestheoddsthat Financial planningisn’tjustforthewealthy. How toChooseaFinancialPlanner RR -RegisteredRepresentative () RIA -RegisteredInvestment Advisor PFS -Personal FIannicalSpecialist CLU -CharteredLifeUnderwriter ChFC -CharteredFinancialConsultant CFA -Chartered Financial Analyst CPA -CertifiedPublic Account CFP -CertifiedFinancial Planner AFC - Accredited FInancialCounselor What dothelettersmean? prospects questions andgatheringinformation, Schedule and conductinterviews.Afterasking WDFI. from theinvestmentadvisor orfromtheSEC You mayalsogetcopiesof theFormADVdirectly Disclosure website(www.adviserinfor.sec.gov). this formonlineattheInvestmentAdvisorsPublic or herfees,services,andstrategies.Youmayview andpossiblecomplaintsaswellhis advisor’s “FormADV,”whichdetailsthe (www.wdfi.org). Askforandreadbothpartsofthe Wisconsin DepartmentofFinancialInstitutions Exchange Commissions(www.sec.gov)orwiththe to registereitherwiththefederalSecuritiesand advisor, thestateofWisconsinrequiresthem Gather information. each prospecttosendinformationyou. income andinvestmentrequirementsare.Ask on theircredentials,specialties,andwhat preliminary questionsthatprovideinformation services meetyourneeds,callthemwith After you’vemadealistofprospectswhose preliminary contact. Develop alistofprospectsandmake - andlong-termgoalsfirst. spending patterns,assets,insurance,income,and someone tohelpyougetapictureofyour you’re notsurewhatyouneed,maywant need. Thisstepwillhelpnarrowyoursearch.If you wanttoaccomplishandthekindofhelp and financialsituation,consideringbothwhat your financialrecordsandreviewpersonal Review yourfinancialsituation. right personforyou. Here aresomeotherstepstohelpyoufindthe different credentials,seetheboxbelow. College ofBrynMawrinPennsylvania.Foralist Consultant (ChFC)awardedbytheAmerican of Standards,Inc.,andtheCharteredFinancial planning organization. a referralfromfinancial , oryoucanrequest professionals, suchasyour colleagues, otherfinancial from friends,relatives,work may getrecommendations of prospectstocontact.You you’ll needtodevelopalist what you’relookingfor, If youchooseaninvestment Once you’veestablished First, gather schedule and prepare for personal interviews with at compensation from commissions. Be aware that while least three or four planners that seem to match your some fee-only planners do not sell financial products interests. Most planners will offer initial half-hour- to or get commissions, you may have to pay a fee to a hour-long interviews for free but make sure to verify broker when you purchase the investment the planner this when you schedule the appointment. Also, check recommends. Be sure you understand the fee structure to make sure the person you’ll be meeting with is the and know about situations where additional fees may one who will be your advisor. For couples, each partner be charged, for example if a must be consulted. should feel comfortable with the selected advisor so You should expect to spend several hundred dollars both partners should go to the interview. per year for a basic .

Ask questions. Bring a list of Check regulatory agencies. If a questions or issues you would planner receives compensation Helpful Websites like addressed with you to the for providing specific advice interviews. As well as inquiring Financial Planning Association involving securities, he or she about investment experience, www.plannersearch.org must be registered. Find out professional background, and Certified Financial Planner Board of Standards about the disciplinary history education, you’ll want to ask www.cfpboard.org of any brokerage firm or what strategies or principles the sales representative by calling Protection Trust planner uses to develop financial www.investorprotection.org 1-800-289-9999, a toll-free hot recommendations. Find out what line operated by the National you can expect the planner to Morningstar Association of Securities Dealers, do for you – you are interviewing www.morningstar.com Inc. (NASD). The NASD will provide them as much as they are you. You The Motley Fool information on disciplinary actions can also request a copy of a typical www.fool.com taken by securities regulators and financial plan and the advisor’s National Endowment for Financial Education criminal authorities. ADV, if you haven’t already gotten www.nefe.org it. Make a choice. Evaluate and Securities and Exchange Commission www.sec.gov reflect on each interview. Check the Bring along financial documents. performance record of the firms Bring your information with you as Wisconsin Department of Financial Institutions and planners you are considering. the advisor you choose will need www.wdfi.org Get several references from each to assess your financial situation prospect of current and former and need your financial documents clients - especially of clients anyways (if you provide it up front in writing, there’ll with goals similar to your own, and take the time to be more time for you to ask the questions you’d like check them. Do not rush. It’s important to select the answered, too). You should bring: a rough outline of planner who best meets your needs and with whom your monthly budget including an estimate of monthly you feel comfortable. When you initiate the formal expenses, recent tax returns, Social estimates, relationship, be sure to discuss the scope of the plan sources of present and future income, recent account and have mutually-agreed-upon expectations of the statements for retirement plans, recent and outcome. And get it in writing – you should receive brokerage statements for all accounts, a list of major a letter of engagement, which lays out the planner’s assets and estimated market value, a recent statement responsibilities and expectations, and yours as well. from all open card accounts, and copy of the Always read the entire document before signing it. If latest declarations page from auto, home/renter’s, life you need to, take it home with you to read and make and disability insurance. notes of items that need clarification. Ask questions about everything you don’t understand. Remember, Know your cost. You will need to find out how the you need to educate yourself and be involved in the planner is compensated, which services are covered, financial planning process! and how much you will pay. Some planners work for a fee, some work on commission, and some combine Implement your plan. The best financial plan in the commission and fees. Some fees may be based on an world is useless if you don’t implement it. A planner hourly rate, others on a specific charge for a specific may help you plot the course, but you’re in charge. service, still others on a percentage of a client’s income or asset base. Don’t be fooled by misleading terms: “fee-based” is not the same as “fee-only” but indicates that the planner receives part of his or her

University of Wisconsin Human Resources 780 Regent Street, Ste. 224, UW Tax-Sheltered Annuity (TSA) 403(b) Program Madison, WI 53715 How to Choose a Financial Planner, page 2 [email protected] Rev 10/18