Advisory Engagement

There comes a time in everyone's life when you could really use some professional financial advice. Sometimes your know-it-all uncle or sister-in-law misses the mark and is not up to date on all the latest in financial planning. So you get recommendations, interview several advisors and select one. But before you start the planning process, you will most likely be asked to sign a contract with the advisor for an official advisory engagement. Here they should spell out the services they will provide and at what cost. Services can include insurance coverage, retirement planning, saving for college, tax shelters, estate planning, charitable giving and investments. There should be meetings scheduled to review progress on at least an annual basis. The advisor should also state that he or she is acting as your "fiduciary," meaning they will always act in your best interest. This may seem obvious, but many are on commission to sell certain financial products, and these investments might not be in your best interest.