Finding a Financial Planner An Interview with Kathleen Kendziorski Kathleen Kendziorski is a registered investment advisor with Financial Network Investment Corporation in Seattle, Washington. She was interviewed for CUE by Rob Baird. CUE: What is financial planning? KENDZIORSKI: Financial planning is looking at all aspects of a financial picture: where is your money, where is it going, taxes, cash flow, insurance, and emergency situations that may arise. Then trying to identify goals. 1 always ask, "What do you want to accomplish?" And finally, working toward those goals in a way that is comfortable; be it levels of risk or a concern for socially responsible investing (SRI). Financial planning is an ongoing process. Some of it may be very specific issues such as where to put my Individual Retirement Account (IRA). Nothing is cast in concrete; things change, you change. A financial plan is flexible. CUE: Why do people need a financial planner? KENDZIORSKI: We put more time into planning our vacation than we do into our financial plan. We also don't have information about investment op tions. Particularly for women, we have been left out of discussions about money. The goal of a financial planner is to give you more information so you can make a better decision. CUE: How do you find a financial planner? KENDZIORSKI: You're looking for a professional just like any other. So what do you do first? You talk to people that have financial planners. You ask your friends or family, "Are you working with someone you like?" Second, if you have access to other advisors: an attorney, a certified public accountant (CPA), ask them. If you know people who have money and are investing, and they may not necessarily be friends or family, ask them. Shop around. Don't just talk to one, talk to five. Usually financial planners give a first interview free. CUE: Are there specific questions you should ask financial planners? KENDZIORSKI: Definitely. You want to know if they have other clients in your situation; whether you are just starting out or have a $5 million portfolio. You want to know about the planner's experience and background and how they approach financial planning. In that conversation you should get to: What are my goals? What am 1 trying to accomplish? The idea is that they are working toward my goals, not their goals. They are not trying to get me into a certain kind of approach because all their clients use that approach. Another question to ask is, "How do you make your money?" I explain the three ways that financial planners make money. The final thing is to ask for a referral. Talk to one of their clients. Ask the client what their goals are, do they feel they have been serviced well, is their planner accessible? CUE: What is the most important thing to find in a financial planner? KENDZIORSKI: You are looking for a couple of things. A sense of communication; what you are saying as a client is being heard by the advisor. You want someone who can communicate back to you in a way that you can understand. Not, "I'll take care of it for you, dearie, don't worry about it." Nor the other side, where they give you so much detail that you walk out of the place spinning from too much information. Ultimately, you are looking for someone that you can trust. Do they show genuine concern about you? You know what happens? After talking with two or three planners you come out of it thinking: I'm most comfortable with this person or that person. Ultimately^ you are looking for someone that you can trust. CUE: What are the three ways that financial planners make money? KENDZIORSKI: One is that they charge a fee and they do a comprehensive financial plan. That fee ranges anywhere from $500 to thousands depending on how complex it is. Some will give you a plan for Page 12
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