Lovell & Associates Financial Consulting Services Ltd.

The Financial Planning process is a complex one and there is little doubt that you have alot of questions and perhaps even some confusion relating to this arena.

The purpose of this section is to provide some insight into some of the considerations and questions you might have relating to personal finance:

We encourage new clients to take the time to educate themselves about Financial Planning and the process of selecting an advisor, and we hope this section will incite some thoughts on this matter.

Questions to ask yourself

Questions to ask us

Questions for you to ask yourself:

There are several considerations when starting the process of engaging a financial planner to develop a plan This section will help you focus on what your expectations are and what you are truly looking for out of a client/planner relationship

What are your goals?:

Consider what your financial goals are. There are no right answers! It could be retirement by a certain age, starting a small business, educating children or ensuring that you leave as much money as possible after your death for a spouse or loved one;
Focus on your goals. Consider where you would like to see yourself in 5, 10 or even 25 years. Think long term what are the steps along the way and where are the hurdles?

Do you think that an advisor can...

care about your goals
increase your portfolio
make you wealthy
save you some tax
organize your affairs and situation
simplify your life
help you focus and make more objective decisions
provide needed expertise and knowledge
maintain a long term relationship with you?

Other Considerations for you:

How much is enough to be comfortable?
Are you paying more taxes then you need to?
What would happen if you died tomorrow. Would your spouse and children be provided for?
Who would handle your estate and how much will be lost to taxes and fees?
Could you use some guidance with complex financial decisions?
How far away is retirement and can you make it work?
What about benefits from your employer?
Is your portfolio working for you?
How much will it cost to educate your children?
Who can you trust and why would you trust them, who will work for you and how hard will they work?
Do you have the time and/or the knowledge to do this all yourself and if you do are you missing anything?
Can you afford not to get the right advice what will that cost?
What do you want to pay an advisor, what are the real costs?
Can the right advice save you money?
Are you already using a broker or agent but find you might be able to really benefit from additional planning or tax expertice?

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Questions for you to ask us:

Selecting a Financial Advisor is a difficult decision. First, there are many choices and also this is someone with whom idealily you want to develop a long term relationship. You also want someone with the right blend of education, experience and personality to communicate and handle your situation effectively.

We believe that there are several considerations and questions to ask in the process of selecting an advisor and you should ask these of us or any advisor you might be considering.

1.) What is your educational background?

Your advisor should have a solid educational background. Your advisor will have to research some complex issues when developing a Financial Plan for you, and having an advisor that has the education and background is essential so that you are assured the best answers for your situation.

2.) What is your experience and how many years have you been in practice?

Financial Planning is indeed art. Like many things, it takes time and experience to arrive at solidly researched, creative solutions for clients. The more experienced and educated the advisor, the better they will generally be at developing a solid plan for you.

3.) How are you paid for your services?

You have a right to know how the advisor is paid. We are "fee only" advisors so we are paid directly by you only and we work only for you to develop a plan that covers all aspects of your financial life

Some advisors are paid a commission to sell you an investment product such as a mutual fund. This is a common method of compensation with larger firms. This method of compensation can result in some issues. First a commissioned advisor's advice tends to center around investment products. Investments are only a small part of comprehensive Financial Planning, so the scope of this advice can be in many circumstances limited. Also paying an advisor via a commission on an investment can result in biased or commission driven advice. Generally in our experience,individuals that are currently working with a broker or commissioned sales person have not addressed or considered many important aspects of their financial life like estate planning, stategic tax planning or tax effecient investing. In these cases our services frequently complement the services of a broker or life insurance agent.

Beware of any advisor that claims their services are free! Every advisor is paid by some method otherwise they would not be in business for long. Some advisors will state they are paid by the company they work for while getting paid commissions that come from your investments. It is important that any advisor disclose how they are paid.

One thing we always stress with clients is value. Certainly, developing a proper Financial Plan has a cost. If an advisor charges you a fee ask yourself what you are getting for your money. Are they providing objective advice, do they listen to your needs and goals, is their advice cost effective in that is saves you taxes and increases your investment income or reduces fees?

4.) How focused is this Planner on my goals and needs? Does the Planner listen and do I feel comfortable talking with them?

A financial planner should be very focused on your current situation as well as your goals and needs. They should listen closely to your goals and help you focus and refine those goals into a plan to achieve them.

How good is the planner at communicating at your level? A good planner should boil things down and simplify things to help you understand them not attempt to dazzle you with complexities and charts and graphs. Communication is a major part of planning and having an advisor that you are able to work with is absolutely key.

Should you meet with an advisor, after the meeting ask yourself how comfortable you were with them. Did they listen? Did they take the time to really focus on your situation or were they more interested in just your portfolio? What did the advisor ask for? Did he ask for your tax returns and other relevant information so they can truly understand your situation? Finally was the planner selling to you or listening to you.

5.) How long have you been in business and can you provide references ?

Look for a well established firm with a long and successful track record of working with clients. Most advisors will provide you with the ability to speak with one or more existing clients as a reference.

The right planner will provide you with a valuable long term relationship and will provide cost effective advice that will save you money, but you need to ask the right questions to find the right planner for you.

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Disclaimer & Assorted Fun Legal Stuff:

All written content on this site is for information purposes only. No client or prospective client should assume that any information presented and/or made available on this Website serves as the receipt of, or a substitute for, personalized individual advice from Lovell & Associates Ltd. which can only be provided through a formal advisory relationship. Please see the "Contact Us" section for information on contacting Lovell & Associates Ltd.

No information on this website is intended to be legal advice. You should consult your legal counsel for advice regarding your particular circumstances.

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