Think you need a financial advisor?  —————————
—————————  Here's how to decide - and choose

Financial advisors are not for those just starting out. Until you satisfy some relatively extensive short-term requirements, you're not ready for long-term financial planning. Those requirements include:

• Having money left over to invest after paying your bills
  
• Owning a home
  
• Having adequate insurance
  
• Setting aside three to six months of living expenses in cash to guard against emergencies
  
• Participating in your employer's retirement plan

How to choose once you're ready
Time, perseverance and basic money management skills will help you reach the above goals. When you're ready for a financial advisor, the following tips from the financial experts can help you find one:

1. Read. Personal financial publications are everywhere. Books, newsletters, magazines, newspaper articles and Internet web sites can help you become familiar with financial terms and investment options.

2. Set goals. Decide the long-term goals you need help achieving (e.g., retirement, investment advice, college tuition financing, estate planning). Then look for an advisor who specializes in that particular area. If you're married, make sure you and your spouse share the same - or at least complimentary - goals.

3. Organize your paperwork. Figure out how much you own and how much you owe. Subtracting what you owe from what you own tells you your net worth. This is the starting point for all your future financial decisions.

4. Ask friends. Get referrals from people you know who are farther along in their financial planning than you are. You might also contact professional organizations for a referral.

5. Conduct interviews. Talk with several financial planners before selecting one. Most will not charge you for an introductory meeting. Ask about their educational background, their work experience, how often they communicate with their clients and whether they follow written ethical standards. Determine how they're paid and whether they have a financial interest in the investment products they recommend.

6. Be brave. If you have questions, ask. Don't be intimidated by buzzwords or technical jargon. Your goal is to determine whether you can trust this particular advisor with the personal details of your finances.

7. Evaluate their questions. To offer advice, a good financial planner will review your total financial picture. If he or she fails to ask you about your income, goals, objectives and attitudes toward financial risk, you're not getting the individual attention you deserve.

8. Be wary. Don't believe promises of quick riches or instant financial gain. Building a secure financial future is not accomplished overnight or with one single investment.

9. Look for a fit. Is the advisor's investment philosophy aggressive, conservative or balanced? Will he or she consider the social or political issues that are important to you when selecting investments? Ask for evidence of the answers, and make sure the advisor's outlook is in line with yours.

10. Check backgrounds. Check the advisor's complaint record with your state insurance or securities departments. If he or she claims a professional designation or license, check with the issuing organization to be sure the advisor is current. Also ask for references of clients who have at least three years' experience with the advisor.

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