Financial Planning is a comprehensive & long-term process of wisely managing your finances so that you can achieve your goals & dreams while at the same time helping to negotiate the financial barriers that inevitably arise in every stage of life.

Planners are compensated in a variety of ways, including fee only, commission, a fee/commission blend and salaried. Each method of compensation has its merits, depending on a prospect's age, lifestyle, and financial situation. There is no right method. What is important is that the prospect clearly understands how a planner is compensated and any real or potential conflicts of interest that may exist. Armed with that information I believe a prospect can focus on the planner's competence as the primary consideration in their selection process.

Most financial planners will provide you with one free half-hour or hour meeting to talk about your reasons for wanting to work with them. During these initial interviews, the planners will also decide if they can help you and explain how they would work with you. Like other professionals, the rates financial planners charge depend on their experience, geographic location, level of services and your needs. Interview more than one planner to get an idea of the going rate for financial planning services.

Every individual situation is unique & different, as we all know. I am convinced that for most clients they should always own some stocks be it individually or through mutual funds or annuities. With the current cost of living rising about 3 to 4% annually and other things like heath care & prescriptions rising more rapidly, it's going to get tougher and tougher making our nest egg last as long as we do with exclusively fixed income investments that pay 3 or 4 %. You can tread water for a while successfully, but eventually you'll begin to go under

Investing a fixed amount at regular intervals is a strategy called dollar cost averaging. Because the amount you invest is constant, you buy more shares when the price is low and fewer when the price is high. This gives you an average cost per share over time and means you don't have to take a lot of time and effort to monitor market movements and try and time your investments. It does not however guarantee a profit or protect against loss in a declining market. You should also consider your ability to commit to such a strategy.

I believe the best portfolio for my clients has a few key considerations. First and formost it has to be in your best interest and taylored for your unique situation. The client needs to understand and buy into the goal & vision of the portfolio so that they are able to stay the course if things get choppy from time to time. Lastley a portfolio needs to be nimble having the ability to reduce risk when necessary, while also being poised to take advantage of opportunities as they become available.

I'm a big fan of dividend paying stocks because they are the only stocks that pay you to own them. One of the most important factors to evaluate when you analyze dividend stocks is whether the dividends are likely to increase or decrease while you hold the stock. Increasing dividends usually lead to higher share prices. For dividends, history is a good teacher. Stocks with a track record of consistent dividend growth are likely to continue on that path. Yahoo is the best place to check on historical dividend payouts. From Yahoo' s Finance homepage (finance.yahoo.com), get a price quote, click on "historical prices," and then select "dividends only." Yahoo lists the dividends going back to August 1986, if the company has been paying them that long.

While you cannot know for certain exactly how long you will live, it's possible you may end up spending more years in retirement than the years you spent working. A 65-year old male has a 25% probability of living to at least age 92. And if he's married, there's a 25% probability that one person in the couple will live to age 97. (Source: Annuity 2000 Mortality Table. Figures assume you are in good health.)

Roughly 50% of Americans now turning 65 will be admitted to a nursing home at some point in their lives with half staying up to six months and 10% staying more than three years. However long the stay, full-service nursing home care is expensive with annual cost estimates ranging from $33,000 to $91,000 depending on location and services. A 2002 study estimates that a couple retiring today at age 65 without an employer-funded retirement health plan will need current savings of $160,000 to cover their expected health care. Consider seeking out ways to cover these unpredictable expenses, such as a long-term care policy. (Source: Fidelity Employer Services Company, "Retiree Health Costs: Addressing the Growing Gap")

Estate planning is a process involving the counsel of professional advisors who are familiar with your goals and concerns, your assets and how they are owned, and your family structure. It can involve the services of a variety of professionals, including your lawyer, accountant, financial planner, life insurance advisor, banker and broker. Estate planning covers the transfer of property at death as well as a variety of other personal matters and may or may not involve tax planning. The core document most often associated with this process is your will.

If you die intestate (without a will), your state's laws of descent and distribution will determine who receives your property by default. These laws vary from state to state, but typically the distribution would be to your spouse and children, or if none, to other family members. A state's plan often reflects the legislature's guess as to how most people would dispose of their estate and builds in protections for certain beneficiaries, particularly minor children. That plan may or may not reflect your actual wishes, and some of the built-in protections may not be necessary in a harmonious family setting. A will allows you to alter the state's default plan to suit your personal preferences.

A proper estate plan to provide for the needs of your family may include: " An adequate Will or Trust; " A written agreement concerning the status of your assets; " A directive to your physician or a Durable Power of Attorney; " Final instructions of your preference.

A trust document is an agreement between three people dealing with assets. " The Trustor is the creator of the arrangement who appoints a " Trustee to hold the legal title to the subject assets for the benefit of " the Beneficiary. Although there are certain legal limitations, it is possible for the Trustor and Beneficiary to be the same person and is even possible for the trustor to serve as his own Trustee. In some situations, Trustors may wish a bank or other entity to serve as the Trustee.

Trusts offer a number of important benefits: " Probate Avoidance; " Capital Gain Tax Savings; " Retention of privacy of family assets and finances; " Avoidance of conservatorship; " Creditor protection for your beneficiaries; " Control of distribution and management of assets during life and after death; " Death tax avoidance or reduction.

In larger estates where tax savings are an important consideration, the use of trusts may play a paramount role. Even relatively small estates can usually benefit from the probate avoidance offered by a Trust. Oftentimes, individuals do not realize just how large their estate is. This is especially true since all assets owned or in which one has an interest is included, such as: " Life insurance; " Joint tenancy or community property holdings; " Business interests. A Trust can be designed to meet the needs of a large or small estate. Its cost is a fraction of what the avoided probate expense or estate tax would have been.