Go back to News pageSAN FRANCISCO -- A common question from readers: What's the difference between a stockbroker and a financial planner?
Stockbrokers are in the business of selling stocks, bonds, mutual funds or some other type of security for a commission. Don't be fooled by titles such as financial consultant or investment counselor; they're not usually trained in developing comprehensive financial plans.
Good financial planners -- and I stress the word, "good'' -- are supposed to be trained in matters covering insurance, taxes, retirement, estates and, of course, investments. Some accountants and insurance agents also have additional training that qualifies them as financial planners.
Some planners charge commissions, straight fees or a combination of both. The current trend is toward fee-only planners as a way to avoid commission-churning abuses. However, just because a planner charges a commission doesn't mean he or she is a charlatan. It's more important to find a planner with whom you feel comfortable. Make sure you interview several planners, and push hard to get the names of references.
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Memo: If you have a complaint against a broker and want it resolved, one option is to arbitrate. Quite a few services have popped up offering help to disgruntled investors. Usually they're run by nonlawyers who get a cut of the award. Before using one of these firms (or individuals), however, check their background with the National Association of Securities Dealers (1-800-289-9999). Quite a few were kicked out of the securities business for unscrupulous behavior. That may give them an edge (after all, sometimes it takes a crook to catch a crook), but if they don't disclose their past troubles, you might wonder what they're trying to hide.
One source for the name of attorneys who will help you arbitrate is the Public Investors Arbitration Bar Association, in care of Page & Bacek, 3490 Piedmont Road NE, Suite 900, Atlanta GA 30305.
Memo: If you want to consider reducing your insurance premiums, you don't have to wait until a policy is up for renewal to begin cutting insurance costs. You can call your insurance agent and change deductibles or other parts of your policy at any time.
Memo: If you're seeking a job, don't rely solely on your resume. In her new book, "The Career Coach," Carol Kleiman says a resume is merely your personal identification card. It's not a passport. She says it should be kept to one page, and avoid using color paper. While color paper may attract attention, it's not likely to attract the kind of attention you want. Also, never include a photo in your resume and don't bother with video resumes. Finally, be sure to tell the truth. Kleiman says more and more companies are spending the money to double check what you say.
You can reach Herb Greenberg on America Online at Bizinsider@aol.com.
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