Financial planning is something that many people fully intend to get around to doing tomorrow. Unfortunately, it is not uncommon for people to allow 30 or 40 year’s worth of tomorrows to pass by without ever acknowledging that financial planning is something that needs to be done now – it is never too early to start and, by the same token, it is never too late to start – if you have not begun, the critical thing is to do it now.

With “do it now” as the overriding theme of this message, there are a couple of things I’d recommend that you consider. The first involves getting on the internet and looking at the web site that is maintained by the Certified Financial Planner Board of Standards (www.cfp.net). This site contains a wealth of information about financial planning – below, in a sidebar to this article, I’m including their listing of best practices when approaching financial planning. The second involves signing up for a seminar sponsored by MOSERS. For information regarding our seminars (Pre-Retirement Planning or Money Matters) go to the MOSERS web site (www.mosers.org), click on “Active Members” and, under that, click on “seminars.” From that page you will have access to additional information regarding both of the types of seminars we conduct. If you think this is something you might do “tomorrow,” please do yourself a favor and consider doing it now.

It has come to our attention that there are individuals who have no affiliation with MOSERS who are conducting “free educational seminars” where much of the focus is on MOSERS’ benefits. Given that we have no involvement with these seminars we cannot attest to whether or not the information being distributed is accurate, current or objective. To assure that you have information that meets all of those criteria regarding your MOSERS benefits we encourage you to participate in one of our seminars or at least contact a MOSERS benefit counselor with questions you may have about any of the benefit programs we administer. The potential payoff for the “free lunch” nature of the other seminars mentioned seems reasonably clear – those who are conducting the seminars anticipate that some of the participants will engage the seminar sponsors for financial planning for a fee. That is not necessarily a bad thing – it’s just important for you to understand what you are buying and how you will pay for it before you buy it.

If you are thinking about engaging the services of someone for assistance with financial planning, I would again refer you to the www.cfp.net web site. Under “Learn About Financial Planning” you will find a link to “How to Choose a Planner” which includes an “Interviewing Checklist.” One aspect of the selection process that I think is very important is determining how the planner will be compensated and whether or not the compensation arrangement results in any conflicts of interest. The safest way to avoid potential conflicts is to make direct “fee for service” payments to a planner such that the amount the planner receives will be completely independent of any investment decisions you make – that is, avoid arrangements in which the planner will receive compensation based on sales or brokerage commissions on any accounts you establish.

As mentioned at the outset, if you are thinking about financial planning, now would be a good time to begin the process – if you are not thinking about financial planning, now would be a good time to start thinking about it. With either being the case, you’ll ultimately be glad you started now.

Concluding Caveat: Keep in mind that while a financial planner may discuss your MOSERS benefits with you, that person is not an authorized representative of MOSERS. You should verify any information provided to you regarding your MOSERS benefits by contacting a Benefits Counselor at MOSERS. We are aware of situations in which financial planners have provided our members with information that is not accurate.

Please remember that our Benefits Counselors have no personal financial interest in any decisions you make regarding anything having to do with your benefits. Their goal is simply to be certain that you have all of the information you need regarding the various options available such that you will be well positioned to make an informed decision. On the other hand, there are some financial planners who may, for example, encourage you to take the maximum BackDROP payment available and then propose that you retain their services to help you manage the money. That decision would be in their best financial interest if their fee is based on the amount of your assets invested with their assistance. It may or may not be in your best financial interest to go that route. The bottom line is that a free lunch is rarely free and may end up being quite costly.

• Set measurable goals.
  
• Understand the effect your financial decisions have on other financial issues.
  
• Re-evaluate your financial plan periodically.
  
• Start now - don’t assume financial planning is for when you get older.
  
• Start with what you’ve got - don’t assume financial planning is only for the wealthy.
  
• Take charge - you are in control of the financial planning engagement.
  
• Look at the big picture - financial planning is more than just retirement planning or tax planning.
  
• Don’t confuse financial planning with investing.
  
• Don’t expect unrealistic returns on investments.
  
• Don’t wait until a money crisis to begin financial planning.