Financial Advisors

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Tips & Advice to help you make your decision on Financial Advisors

You are in business to make money. The reasons you wish to make money may differ from person to person and business to business, but the end result is the same. Profitability is the essence of the bottom line. There are more ways to make money for your business, however, than simply manufacturing and selling your product. Investments are a great way to enhance the earning capacity of your overall business plan.

Even if your business is a charity that gives all profits away to worthy causes, if you have the opportunity to increase the amounts you can donate, you will be even more successful in your laudable efforts. If you're in business to make a profit for yourself and your employees, the same mentality applies. Using financial advisors to increase the overall earnings of your company through long and short term investments with a balanced portfolio of high and low risk funds can greatly improve your overall profitability.

Financial advisors can also help you earn money to fund a retirement or pension plan for your employees. Offering these benefits can help maintain overall employee loyalty in an age where a spotted resume isn't the problem it used to be. Training new staff costs money, so it is in the best interest of overall success to maintain a low rate of turnover.

Choosing a Financial Planner

Hiring a financial planner may seem like an unnecessary expense for a small business, but it can actually help your business cut costs in many ways. Not only that, sound advice can lead to financial growth for your business and for you personally.

Although most financial planners cater to individuals, some focus their efforts on helping business owners with decisions about employee benefit plans, insurance, taxes and more. When hiring a financial planner, consider the following:

Experience.
Compensation.
Certification.

Get financial planning help with insurance

HMO, PPO, POS — with the myriad options available, it's tough to zero in on the best health insurance plan for your business. Some financial planners are licensed to sell insurance and may work on commission; others are paid by you and can help you choose the best plans for your business.
Try: ING offers a slate of financial planning services for businesses, including the selection of employee benefits.

Sift through retirement plan options

Whether you want to create a retirement plan for yourself as a sole proprietor, or you want a plan that will cover you and your employees, a financial planner can help.
Try: Financial advisors at Merrill Lynch and Schwab offer a number of options geared specifically to small business owners and their employees. If you prefer an independent planner, search for one in your area at LPL.com, which has more than 6,500 advisors in more than 4,000 branches nationwide.

Investment plans for you and your business

Ideally, as a business owner, you'll have profits to invest. For unbiased advice, you may wish to use a "fee-only" financial planner who isn't licensed to sell investment products.
Try: Major investment firms, such as Fidelity, have advisors who can help you find the best ways to invest your company's cash. Find financial planners who aren't licensed to sell investment products at the PaladinRegistry.com.

Tax planning

Financial planners can help you identify additional tax deductions and can alert you to specific reporting requirements for your business.
Try: WiseAdvisor.com offers several matching services to help you find a financial planner who deals with business finances and taxes.

Commercial real estate

When you're contemplating buying or selling commercial real estate, get advice from your financial planner.
Try: Prudential Financial offers a number of services geared to business owners, including relocation services, commercial mortgages and commercial real estate. Search for a Prudential financial planner near you on the firm's Web site.

Check credentials

Anyone can call himself or herself a financial planner. Ensure that your financial planner has the proper education, experience and commitment to ethics by choosing a Certified Financial Planner, a Personal Financial Specialist or a Chartered Financial Consultant.
Try: Download a checklist from the National Association of Personal Financial Advisors to help you evaluate financial planners and their credentials.

Consider compensation

Planners may receive a fee, commissions based on selling investments or insurance, or a combination of the two. Fee-only planners may charge a percentage of the assets under management, an hourly fee or a flat fee. Many believe that fee-only advisors provide the most unbiased advice since their income isn't derived from selling financial products.
Try: Search for fee-only planners at NAPFA.org.

Keep in mind that many planners have minimum income and asset requirements for clients.
Get referrals from friends and business associates.
Be sure to meet with planner for a free consultation. You want to make sure you're comfortable with your advisor and he understands your company's needs.