Federal Retirement Advice by Alexis Hongamen, CRPC

Here are just a few red flags that should alert you something is not quite right with the way your investment adviser is handling things: When the investment adviser requests you write checks payable to him or the adviser’s firm. An adviser should not hold custody of your funds or assets. A third party should hold custody and all checks should be made to the third party, typically a clearing house. Your adviser should not have access to your account except to make investments with your funds or deduct the previously agreed upon fees. When the only statements you get come directly from the adviser. Statements should be coming from the third party where your assets are held, the custodian of your account. Adviser should not be guaranteeing returns on your investments.  Bernie Madoff guaranteed 1% per month on accounts and we all know how that ended.  Any promises or guarantees made by the adviser should be a huge red flag.

There is never a bad time nor is it too early to engage a financial planner. In fact, the earlier the better. Even if you are early in your career and don’t have many assets, you can still benefit from estate planning.  Here are some of the instances where a Financial Planner can help even a young person with limited assets: Importance of a Will. Virtually everyone over 18 needs a will.  If you die “intestate”, meaning not having prepared a will, state law will determine your beneficiaries for you. If you have multiple loved ones, you may want to be the one and not the court that decides how your assets and belongings are split up.  If you have set up your “Payable on Death” (POD), or “Transfer on Death” (TOD) beneficiaries on your financial accounts that is one positive step towards deciding which family members receive your assets without going through court.  Also remember that these PODs or TODs supersede a will’s declarations. Having an Advanced Medical Di...

The last thing someone who is middle aged and hasn't begun investing wants to hear is that they should have started 10 years ago. Although they are a little late in getting started, it isn't too late. They still have a long term horizon for when they probably need the money for retirement, and that gives them a chance for making for lost time. Q: What are some strategies and methods every day investors should consider or ask when they are in their 40s? A: Contribute to your 401K at work if possible. It is a method of putting money away for your retirement and deferring taxes. Plus, many employers match a percentage of what you contribute up to a cap. The money is also being socked away before you have a chance to spend it, so it helps those folks that need help budgeting. If you don't have access to a 401k at work, you can start an IRA and depending on your income it could be tax deductible. Q: For those that haven't invested yet, how can they get started t...