I recently found a topic on Reddit that I hear from readers from time to time, a question that deals with what happens when you lose a spouse who was the “money man” in the relationship. In this case, the person wanted a pro to help, but didn’t know what a pro was or how to find a good one. Here it is We asked a series of financial experts to answer this question.
“My FIL recently lost his wife (my wife’s mother). I’ve been in charge of finances and he’s been asking me for help because he’s not pretty good at figuring this all out and I’m pretty knowledgeable about personal retirement options, but It’s very confusing about public pensions and different accounts, I don’t know where to start, I’m afraid I’m choosing the wrong expert as this is a more specific situation. I’m afraid they will make the wrong choice in that they don’t know what to do or it’s too expensive.. To start with this situation, you’re better off looking for a financial planner, lawyer, or accountant. Is it okay?”
answer: In this situation, it may be a wise idea to hire a professional. Because your father-in-law might be able to help you a little financially, but you’re not savvy enough to take care of his specific needs yourself. Needless to say, things can get messy when you combine family with money. That being said, choosing the right people is important. (Looking for a new financial advisor? This tool will match you with an advisor that fits your needs.)
Having trouble with a financial advisor or looking for a new advisor? Email your questions or concerns to picks@marketwatch.com.
If your father-in-law needs someone to help him make pension decisions and set up a system for him to manage his own finances, “financial planners can help with that,” says Christina, a certified financial planner. Masu. Guglielmetti from Future Perfect Planning. Financial Her planner can also present investment strategies, mitigate risk management, assist with tax planning strategies, and suggest retirement plans. However, “if you still have estate settlement issues to resolve regarding inheritance or property, it’s a good idea to consult a lawyer,” says Guglielmetti.
When it comes to which financial planner to choose, multiple experts said there are some important considerations. First, find a planner familiar with Oregon pensions, 403(b) and 457. “It’s important to find people who are trained to be experts in these benefits,” says Josh St. Laurent, a certified financial planner at Wealth in Yourself. Logos Financial Group certified financial his planner Terrance Hutchins added: And you have to have the expertise to understand how the pension system works. “
Hutchins and St. Laurent say they also need people who have worked with widows or widows before. In fact, look for someone who can understand “the nuances of working with widows who may not be financially savvy,” says Hutchins.
Of course, you also need a reliable and well-qualified financial planner. “To find a paying financial planner based in Oregon, the CFP Board’s Let’s Make a Plan site and his NAPFA (National Association of Personal Financial Advisers) site are good places to start,” says certified financial planners. president, Brad Nelson said. of Point Loma Advisors. Ask your friends and family for recommendations too. This free tool will refer you to advisors that meet your needs.
Because certified financial planners must undergo extensive training, pass exams, have thousands of hours of professional experience, and adhere to ethical standards, we encourage you to consider a qualified financial planner certification. Masu. Working with a commission-only advisor minimizes the potential for conflicts of interest as you are only paid by the client and receive no commission based on the client’s recommendations.
I don’t want to feel responsible for recommending someone who isn’t qualified to help my father-in-law, or who isn’t working for my father-in-law’s benefit, so I need to interview multiple candidates first to ensure my options. It seems that you are taking the initiative to help your father-in-law. So, while he may not mind having you or your wife attend a meeting with these professionals, ask which one you prefer. (Here’s how to vet the advisors you want to hire.) “Many fee-only advisors are happy to provide free reviews,” says Marianela, certified financial planner at Tobias Financial Advisors. Corrado says
Fees for financial planners vary. In the Assets Under Management (AUM) model, the planner charges a percentage of the assets she manages (usually around 1% of hers). For a one-time plan, he will pay between $2,500 and $7,500, depending on where you live and the complexity of your finances. Hourly planners typically charge between $150 and $450 per hour.
“Many planners offer one-time plans or fixed fees to help you choose the right plan for your father-in-law. We provide it,” says Lee Ann Knight, Certified Financial Planner at Better Money Decisions.
When assessing the cost of an advisor, “define what is expensive and what value you can expect from working with an advisor. may be worth more to your stepfather than you originally thought,” says Hutchins.
Depending on the situation, you may also need a lawyer or an accountant. A good financial planner will connect you with a lawyer or accountant. You can help your father-in-law develop a strong financial plan that includes an assessment of your current taxes. legal and property strategy. To find a lawyer or accountant, research reputable professionals among friends, family and colleagues. Many state attorney websites also have online he directories that allow consumers to search for legal professionals based on location and expertise. Similarly, the American Institute of Certified Public Accountants (AICPA) provides an online tool for finding certified public accountants.
Other Considerations: You may want to discuss listing you or your wife as your father-in-law’s financial power of attorney. “The person can assist in future decision-making on his behalf and ensure that his estate plan, including the will and the designation of beneficiaries, is updated. Bring up the topic of long-term care and have a plan for how to handle such situations in the future,” says Hutchins.
Having trouble with your financial advisor or looking for a new advisor? Email your questions or concerns to picks@marketwatch.com.
