09 Dec Financial planning after you die

Q. I manage my investments but I want to make sure a pro does it for my wife when I die. How do I choose the right person?
— Being careful

A. The first thing you need to do is sit down and have a big conversation with your wife.

You should explain to her all the details of your finances and have her become involved in the process of investing and saving, said Anthony Vignier, a certified financial planner and attorney with Vignier Investment Group in Kearny.

Then, he said, the two of you should work together to choose a financial planner that both of you are comfortable with.

“A planner will help both of you assess what the goals are for your lives and help guide your investment choices by making a plan,” Vignier said.

Vignier recommends you strongly consider working with a Certified Financial Planner (CFP).

“A CFP has to pass rigorous tests covering topics like taxes, investments, estate planning, insurance and ethics,” he said. “CFPs must also commit to continuing education on financial matters and ethics to maintain their designation.”

Plus, a CFP is required to act in their clients’ best interests. Most financial advisors do not adhere to this standard but instead to the so-called `sustainability standard,’ which means that anything they sell to a client merely has to be suitable for a client, but it may not necessarily be ideal or in your best interest, Vignier said.

Make sure you understand how the advisor gets paid. Vignier said whether it’s commission-based, fee-based, hourly or a flat fee discuss how the planner gets paid and get it in writing.

“Finally, while there are other aspects that should be considered, at the end of the day, the planner should be someone that you and your wife are both comfortable with, is thoughtful and helps guide you and your wife in making wise planning and investment decisions,” Vignier said.

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This post was first published in December 2016.