Joe Sgroi recently celebrated his 30th year in business. Joe's firm prides itself on their ability to do business independently with only their clients needs in mind.

Today, practically everyone has heard of the term "Financial Planner." Prior to 1980, quite the opposite was true, when there were very few practitioners. Now, there are many who call themselves Financial Planners but so few who are true practitioners. Every bank, insurance company and stock broker offers "financial planning" as part of their service, but is it really financial planning or a method to facilitate the sales of their company's products? Unfortunately, it is too often the latter as the insurance company planner recommends a complete program of insurance and possibly related products only offered by his/her (singular) company; the stock broker recommends a portfolio of stocks as the ultimate solution; and Certificates of Deposit (CDs), mutual funds and annuities are now being sold by the banks. What then is a Financial Plan as formulated by a true Financial Planner? Generally, what I will describe is advocated by true practitioners and espoused by the International Association for Financial Planning. When a person makes an appointment to see a Financial Planner, he/she is told to come prepared to bare his financial soul. Every facet of his/her income and asset structure will be analyzed and organized into a fact-finding format amenable to what-if/change analysis. During this first interview, which normally lasts one to two hours, the client is also motivated toward the establishment of short, intermediate and long term goals.

Armed with this information, the Financial Planner analyzes the client's needs and wants. His/her goal is to arrive at an optimum solution to these needs, wants, and goals within the constraints of current and projected family income and assets. The financial plan will contain analysis of Life, Health, Disability and Nursing Home Insurance, to make sure the family can survive without severe loss of income or assets. These are products brokered to provide the best coverage at the lowest cost, not just a parent company's line (no one company possesses the best products in every area so these must be "brokered" or "shopped" for the client's benefit). The Financial Planner then proceeds up from the basics to the accomplishment of other goals. Short-term needs (weddings, asset acquisitions such as a new home, car, etc.) are placed into time and importance perspective; and a program is laid out to satisfy these goals. Short-term money (needed in 1 year or less) should almost always be in high yielding, fully liquid money market accounts. These should be non-commissionable accounts with check writing access ($250.00 or $500.00 minimum check). Currently, the best taxable money market accounts are paying between 2.50% to 3.00% and the best tax-free money markets are just under 2% (there really are such accounts but they are rarely recommended because no commissions are paid). Of course, NO product recommendations can be made until complete facts are gathered and the client is hatted up on just what his tax bracket is and what is the best way to accomplish his/her short, medium and long term goals with this data in mind. Not until this process is accomplished and short-term liquidity needs are provided for can you begin your medium and long-term investment strategy. Estimates are made of College Costs (usually an intermediate term goal) less Estimates of Financial Aid and alternatives presented to meet these contingencies. College Financial Planning is an area in which very few offer help and yet thousands of after-tax dollars can be saved. Then, long-term goals such as Retirement and/or Estate Planning are addressed.

As you can see, the implementation of a plan will take place over an extended period. During this period, the relationship between the Financial Planner and his/her clients will be bonded. Annual reviews, progress reports and situation change disclosure are imperative. You can see why some Financial Planners charge large fees and really deserve them.....as long as they are doing their job. Before you commit to an appointment, check on the credentials of your Financial Planner. The most important qualities to look for are Integrity, Complete Independence (not just another one company approach) and Technical Competence. Do not succumb to pressure calls at your home or business. Quality financial planning is rarely done properly in your home. Schedule the appointment only at his/her office. It's much more professional and you'll be able to observe his/her work environment and build a relationship with which you will be comfortable. After all, it is your money and your financial future that counts.