So with all the concern out their about Financial planners and their motives for your welfare, what is important in knowing how to pick one or if you even need one?

The major thing about planners is that for the most part they are paid a commission by the companies whose products they sell. This is of course a tremendous conflict of interest. Can that conflict of interest be overcome?

Yes. But first don't get the idea here that I am saying that all financial planners are not there to help you; a lot are. But I know for a fact that even those with the best of intentions are thinking of what they can sell that will make them good money. That's who they make their living.

So how can that issue be brought into balance for you?

Hire the financial advisor that works on a "fee-only" basis. They make their living by charging you directly; either by the hour or by the job you want them to do. They have no vested interest to sell you something because of its commission offered to them.

So you've got the "commission-based planner and the "fee-only" planner, but unfortunately there is one more type of planner out there which is called the "fee-based" or "fee-offset" type of planner. Guess what they get? They try to get the best of both worlds: they charge for their time, plus the commission off the products they sale. They obviously use these terms to confuse you into thinking they are "fee-only" planners.

Just remember that "fee-only" is that period plus nothing else; and that should keep you from being confused by how they sound alike.

What steps should you take to get a financial planner that is right for you? Remember that they will have the CFP (certified financial planner) designation.
If you hire one that is fee-only and a CFP, to manage your finances, you will pay between $150 up to $300 an hour, and in some cases it will be done for annual fee of one percent of your assets. Make sure they've been doing it a few years, as you don't want them learning by experience with your money.

Here's what you should expect if your finances are not too complicated. In other words if you aren't working with more than a million dollars, it shouldn't take more than a few hours combined with a talk about your assets and then what to budget and some recommendations on how to allocate them. It shouldn't cost you, depending on the fee structure, more than say around $500 - $700; which really isn't that bad if you have a good planner working with you.

Of course if your estate is worth more than a million dollars you will need some additional advice in several areas that would take more time.

The reason why this is becoming such an issue is that many baby boomers are beginning to realize that they have to do something as retirement nears. This is one of those areas where the boomers are going through different stages of their lives and creating the need for more services.

One last thing to watch out for in this area it what are being called "senior" or "elder" specialists. They have very little training and their whole job exists for the purpose of selling high-end investment products to the elderly.

Just look out for these things and follow these recommendations and you should do fine.