Senior Citizen Retirement

Senior Friendly

A home that may be convenient for people around the ages of 50 to 60 can actually be different when they reach the age of 70 to 80. Eliminating clutter in homes is one of the first tips to consider in making your home senior-friendly, since its one of the solutions in preventing accidents from happening. Adding lighting is another good tip since senior people may need twice as much light to see clearly.

Doing simple makeovers for your home can beneficial for senior people and may prevent unfortunate incidents and can make life easier for them.

Recreating your Bathroom

Increasing safety and accessibility in your bathroom is highly important, since it is used countless times everyday. Not only should it be comfortable and attractive, it should also be safe. Since most accidents may occur in the bathroom than in any other part of the home.

Build roll-in showers with multiple showerheads which are fixed, height adjustable and handheld. When using the shower, make sure that the curtain is not held up by a tension rod, since grabbing it for support may result to a fall, install grab bars for support. Also, place rubber mats inside and outside the shower to avoid slipping and falling.

Lowering the bathroom sink and making sure there is proper knee clearance is also needed. Faucets should also be properly labeled hot and cold, color coding them with red for hot and blue for cold. Make sure that water temperature is set on a setting of 120 degrees or lower since most senior people lose their sensitivity to temperature and may scald themselves.

Install an elevated toilet to help senior people with problems in their leg strength and balance. Add handrails on both sides of the toilet.

Lighting Settings

Older people need more light, they also need light to be evenly distributed since it takes more time for the seniors’ eyes to readjust in the changing light. The lighting should be indirect, aiming it at the ceiling or the walls to prevent glaring.

Installing proper lighting at home can reduce accidents. The outdoor areas, stairs, kitchen and the living room areas are some places where the use of proper lightning is needed. Remodel dark hallways, especially if they lead to the stairs or to brightly lit rooms.

Placing flashlights which can be easily reached and looked for is also needed, check on the batteries every few months. Emergency lights should come on automatically in case of power outage.

Use rocker type switches for your lighting so you can turn them on or off even with your elbows if your hands are full.

Kitchen Needs

The kitchen is another room which can cause physical stress for our seniors. Certain parts of the kitchen are needed to be corrected to ensure safety. Cabinets and drawer handles should be replaced with D-shaped handles since they are more comfortable to grasp especially to people suffering from arthritis. Cabinet shelves should also be sliding or pull out in order to gain access to items efficiently.

When choosing appliances, look for refrigerators of freezers with side by side doors so that everything that is needed can be easily placed on the mid shelf. On the other hand, it is also recommended to use drawer type dishwashers installed in platforms to prevent seniors from bending over.

The kitchen needs to be user-friendly. Ensuring maneuverability and adjusting the heights of countertops can spell the difference.

Aging in Place

Since many senior people prefer to age in place, living in their homes than moving to a nursing home or an assisted facility. The need to make a home senior-friendly is extremely important.

Doing simple remodeling of your home can be at times costly but, the rewards to reap will not only benefit our senior people but everyone at home as well. One floor living arrangements can also be done to lessen the use of stairs.

There are a lot of options that may aid in the welfare of senior living. Consulting home builders for remodeling can be arranged. All it takes is a little innovative designing. Some may consider that remodeling homes can result to higher costs than average but investing on something like this not only promotes safety but quality living as well.

Medicare

Medicare is a government-sponsored program that people over the age of 65 and those who meet their special criteria turn to for their social insurance. This program provides health insurance to a certain age group, normally seniors. Medicare is also partly financed by payroll taxes by the FICA of the Federal Insurance Contributions Act and the Self-Employment Contributions Act of 1954.

What Is Medicare

Medicare is a social insurance programs by the United States. It was initially singed into law by President Lyndon Johnson on July 30, 1965 to make changes to the Social Security legislation. During the first signing of the bill, President Johnson registered former President Harry Truman as the foremost Medicare beneficiary and gave him the first Medicare card.

Medicare is also administered by the CMS or the Centers for Medicare and Medicaid Services, who also provides Medicaid and the SCHIP or the State Children’s Health Insurance Program. The department responsible for giving out cost projections and accounting information to the Medicare Board of Trustees in order to help them assess the financial health of the program is the Chief Actuary of CMS. The Board of Trustees, on the other hand, is required by the law to issue yearly reports on the financial status of the Medicare Trust Funds.

Ever since the start of the Medicare program, the Centers for Medicare and Medicaid Services have bonded with privately-operated companies to assist with the administration. Often, these contractors are already in the health care or insurance area. The contracting process might involve payment and claims processing, clinician enrollment, call center services and fraud investigation.

What It Does and Does Not Cover

Medicare can provide coverage for nursing care to those who require long-term care. It can cover delivered care by inside skilled nursing facilities for those beneficiaries who require long-term medical treatment. However, Medicare can not actually pay for custodial care, including assistance with bathing, eating and other daily living activities.

Aside from long-term medical care, Medicare can pay for outpatient services that a beneficiary can get at a community mental health center or a hospital under the outpatient prospective payment system. Such outpatient services include emergency room visit, X-rays or radiology, getting a cast, or stitches for a cut.

If you are 65 years older and you go out of the United States, Medicare will not cover any health care expenses you incur outside the country. However, there are rare cases, where Medicare can pay for the inpatient hospital services that you receive in Mexico or Canada. While they may provide you medical care services under special circumstances, it is handy to have a good travel insurance plan when you are planning to go outside the country.

What is Medicare Part A

Originally, the Medicare program has two parts, namely Part A and Part B. There are few cases where the original Medicare covers prescription drugs. However, drug coverage was made possible as of January 2006 due to Medicare Part D.

Medicare Part A is for the Hospital Insurance. The section can cover beneficiaries’ hospital stays, including those in a skilled nursing facility, if definite conditions are met. Firstly, the stay at the hospital must be at least three days, three midnights excluding the discharge date. The stay at the nursing home must also be for a case diagnosed during the hospital stay or for the main reason for the stay.

Also, the care being rendered to the beneficiaries must be skilled, when they are staying at a nursing home. Part A of Medicare does not cover non-skilled or custodial services, including assistance in activities of daily living or ADL.

What is Medicare Part B

For the products and services not covered by Part A, Medicare Part B can help you. Part B of the Medicare program is generally for outpatient services. It is not obligatory and can be postponed if the beneficiary or their spouse is still working actively. More so, a lifetime penalty of 10% per year can be imposed for not taking Part B if not working actively.

Some services included in Medicare Part B are physician services, such as: X-rays, laboratory, nursing services, vaccinations for pneumonia and influenza and diagnostic tests. In addition, Part B can also aid with DME or durable medical equipment, including walkers, mobility scooters, wheelchairs and canes for those patients with mobility impairments.

Employment for Seniors

In today’s age, everyone is working to get through a tough day. Unfortunately, there are some seniors who still decide to postpone their retirement and continue to work. Although they are considered as valuable assets to modern-day companies, no one can image the toll their body handles for working past their prime.

There are several employments available for seniors. In addition, seniors are likely to be employed due to their experience. The baby boomer population is reaching its maturity and they possess wisdom and knowledge about several aspects of business. This is sometimes that main reason why several companies keep a hold of their senior workforce.

Why Others Need to Work

There are several reasons why other seniors choose to work. Probably, they are still unsure if they will be able to attain their goal once they go into retirement. There are others who are compelled to work because they are deprived of luxury and do not expect someone to support their needs after retirement. Yet there are also others who simply want to be completely independent after retirement and do not want to be perceived as useless once they go into retirement.

However, there are other seniors who choose to still work because they are aware of the incredible knowledge they possess. The baby boomer population is considered as a valuable asset to corporate America because they have experienced so much and they can be a great source of knowledge. There are seniors belonging to this group who bestow knowledge to newcomers to the business.

Available Jobs for Seniors

Although the range of jobs available for seniors are vast, if you plan to work, it is important to consider key factors that play major roles in aging, especially your health. There are several opportunities available for the senior citizens and even though they can be less tedious, they are still important to some seniors because they still allow them to be active.

Similar to the number of job opportunities for seniors, the number of governmental, public and private organizations that can help seniors with regards to education, career guidance, job training and placements, interview and resume skills is plenty. However, if you do not want to go through all that again, there are still jobs that require little or no qualifications at all.

One is babysitting. This is a perfect opportunity for a senior to relive their younger years and provide a grandparent to a childe because, unfortunately, many children do have the luxury of having grandparents. You would not find it hard to look for a baby sitting job because most parents are happy to leave their kids to a more experienced and more mature seniors as compared to a teenager.

Another is housesitting where you will tend for someone else’s house. Recently, many people have started traveling to see their friends or relatives to far away locations. Often, these people are willing and happy to know that their property is being taken care of by someone who is capable.

Working Part Time

Part time jobs are also excellent since they do not eat most of your time. Several seniors choose to work part time because they still want to remain active and delay or even avoid dementia, which is usual to elders.

If you still want to enjoy your free leisure time while earning some extra cash, part time home-based jobs are the right choices. There are several work from home opportunities that companies everywhere offer. You can choose from telemarketing to multilevel marketing, which is quite popular nowadays. However, always ensure that the company hiring you is not a scam since there are several fraudulences out to get seniors and their money.

Tips on Looking for a Suitable Job

Looking for a job is not that difficult since you have experienced it all. However, it you are still having a hard time looking for one, you can start by doing the conventional method of browsing the classified ads on your local newspaper.

The Internet is also a great resource. It can provide you any information that you want including job hiring. Simple searches can do the trick and all you have to do is to choose the one that suits you best from the list.

Be it young or old, natural disasters can affect everyone either financially or emotionally. No one is exempted when Mother Nature strikes back and often times, seniors are the ones who get a hard time recovering from the damage. There are several options that members of the senior citizen can do in order to prepare themselves and their property for possible catastrophes.While Medicare does not normally cover catastrophes or damages dealt to your property, there are other insurance that you must look upon in order to provide you with a greater range of solutions. However, you can still rely on Medicare to help you with your hospitalization and drug prescriptions if the damage of the catastrophe is dealt not onto your property but to your health.

Homeowners Insurance Coverage

Homeowners insurance coverage is an option that you can explore if you are living in a disaster-prone area. However, before even attempting to apply for one, you should ensure that you are knowledgeable about the insurance and the things it can do for you.

The Homeowners insurance coverage is a standard policy that can give financial help to your house or property within your house. Normally, the policy can cover natural disasters and theft. However, there are some exceptions that might include earthquakes and flood protections, which might require additional coverage. The Homeowners insurance coverage can also cover damages caused by household pets and legal liabilities to anyone caused harm by family members or yourself on your property.

There are four areas required to assess the amount of the house insurance, such as: personal property, home structure, liability for protection to others and additional costs related with the repairs to your property.

How Much Coverage You Need

If you are considering homeowners insurance, it is important to determine how much coverage you need. This might require you to fully examine your situation and realize what you can with regards to the aspects of home insurance for your location.

Normally, you must know the approximate costs of replacing your home if a natural disaster occurs. Doing so would help you decide on the amount of coverage you need and is actually appropriate. After that, you will be able to create and decide on the best choice the suits your needs. There are policies that operate with a certain amount of limits; you may be able to use this in order to locate the one that best fits your home’s limits.

In addition, it may also be necessary to acquire more coverage that you normally would need. This provides flexibility in the event of problems in the future. If you already have a homeowners insurance policy, it is only evident that you have a protection that can cover the damages to your property.

However, there are some losses that cannot be covered by the policy. In other cases, the policies will only cover specific types of disasters. If you find no coverage that suits you, you may obtain certain coverage through state-sponsored funds for catastrophes, also known as win pool programs.

Preparing Yourself for the Catastrophe

The necessary preparation before any catastrophe is an important element of any risk management procedure. If you are living with someone in you home, it is important to properly educate them about what all of you can do in order to survive a calamity. You must be aware of the weather patterns of the area where you live and what tools and measures you need to do to prepare for emergencies.

The first step is to prepare emergency supplies in your home. Usually, the best disaster kit is stored in a portable container like a camping backpack or a duffle bag. You should also protect the items within the kit by placing them in waterproof plastic bags. The most important item in your disaster kit should be the first-aid kit and other essential medications.

You should also set aside some cash to help you get through after the disaster. If an expected catastrophe is about to occur, important documents must be stored in an area that can help protect such documents. More so, you must procure copies of the important documents beforehand in case the originals are damaged.

The Aftermath

After any catastrophe, it is important to assess just how much damage is dealt and what repairs can you do. If a certain area of the house is destroyed, you must rebuild it in a way that it can meet the building standards that it did not meet before the storm. Additionally, this is the time to check the damages that can be covered by your homeowners insurance policy but always be prepared to pay for additional costs for the repairs not normally covered by the policy.

AccommodationsAs people grow older, they are most likely to spend more of their time in their own homes due to their infirmity, increasing age or to spend more leisure time for themselves. Hence, the environment around them plays an important role in how a person copes with aging.

Issues regarding environment, food, shelter, transportation, and other important necessities for living can greatly influence senior people to seek for retirement homes, apartments and other alternatives that would suit their current state of living. The decision to move for retirement can serve some implications to the senior people, Therefore it is important to understand these issues.

At Home with the Family

Staying at home, in the care of family and relatives is considered a primary arrangement for caring of senior people. It is usually the case for senior people to move in the homes of their older children. But there are instances that relatives and friends may provide living accommodations and when needed, assist in caring for seniors.

Living near a close family member or children or friends can be a fulfilling arrangement to everyone involved as long as it is managed well. Living accommodations for senior people that provides privacy and certain levels of independence can help in lowering stress factors.

When senior people require assistance in their daily activities, a certain understanding must be given in how much care should be provided initially and how additional care may be provided when deemed necessary. Direct family relatives or friends who are deciding to assist in the care of a senior person should give consideration to some concerns on who to provide care if the senior needs help with their daily activities or if nursing care should be required.

Moving to a Lesser Space

Moving to a home or residence that is maintenance-free and involves less housekeeping work can also be appealing to many senior people. The most popular choices are retirement homes and villages. Accommodations in retirement villages may include apartments with provided services, independent living homes, and care facilities which can be also known as nursing homes and hostels.

As with living with family and relatives, moving to a smaller space can be a good arrangement. The cost of moving to a smaller space may differ depending on conditions and amenities provided. Most senior people find that selling their residences and moving to a smaller home can generate funds that they may use for investment or for leisure activities.

Certain factors contribute to the decision of senior people to move in to retirement villages or nursing homes, which includes security, location and maintenance. Senior people take comfort that moving to a village or Home Park can be safe, provides companionship and support especially if the senior is single or widowed; thus, enabling them to stay active and involved in community activities.

Senior Housing

There are a variety of senior housing arrangements available presently. These include: Congregate Housing, Home Sharing, and Foster Care among others. Living alternatives like these cost less than most housing choices since services and accommodations may be limited. But, they still can offer an attractive living alternative for senior people.

Communities that are described as senior retirement communities may consist of grouped houses or apartments in medium or high structures specially designed for senior people. Seniors who live in this type of accommodations are usually expected to live independently. Usually in these communities, the land owner is in charge of the maintenance for the grounds and exterior of the structure. These facilities are usually rent based and may vary depending on the amenities.

There are also board and care homes which can be another option for seniors who are in need of assistance. Care homes provide meals, room and help in daily undertakings.

Nursing Care Facilities

Nursing care facilities provide round the clock skilled care for seniors. In addition to staff which assists in daily activities, nursing facilities have registered nurses on duty. Authorized physicians are on-call to provide supervision for senior health care. Nursing care facilities are regulated and licensed by law and other agencies and should be certified for Medicare or Medicaid. Some of the differences in the care provided for seniors in nursing care facilities are more a matter of degree than kind.

In the wake of rising prescription drug prices and increasingly alarming sides effects of drugs, many seniors are turning to alternative therapies to manage pain. Some methods are legal, and some…not so much!

Massage. An oft-overlooked form of pain-management and therapy, massage is gaining more attention as a great way to relieve the body of stress, while promoting general health. It is highly recommended, as it doesn’t cause the body to “wear down” and there are no side effects.

Alternative drugs. Most noted is marijuana as a pain-reliever, previously used mainly by cancer-sufferers. Now marijuana is gaining acceptance as a legitimate drug. Users of marijuana typically have to order marijuana seeds and grow their own plants to avoid prosecution. Side effects are actually pleasant: a mild high (depending on the amount smoked).

Meditation. While it can be relaxing at worst, it can be therapeutic at best. It’s totally free. However, the investment of time and discipline is necessary for there to be any effectiveness.

With these and many other options besides popping pills, it’s no wonder seniors are abandoning “traditional” therapies - especially with the sad state of U.S. healthcare!

If you are a diabetic you should probably take advantage of this free offer for seniors I found. It allows you to get a free Glucose meter and free “Diabetes Guide” which I found to be very educational. If you are a senior (or just concerned about your health in general) it certainly doesn’t hurt to become more educated.

As a retiree I am always looking for ways to save money but I also always read up on health because it’s probably the BEST investment of all! So I encourage all our readers to click on the link above and sign up for your free meter and free information. If you aren’t a diabetic, you probably know someone who you can give the free meter to.

A Jitterbug phone was recently given to me as a gift. This is a cellular telephone specifically designed for seniors - but as I found out it is ideal for anyone needing a simple cell phone without all the complications of modern-day cellular plans.

The Jitterbug came in the mail just a couple of days after my daughter ordered it for me from the Jitterbug website, and not only was it packaged well but once I opened it it was easy to get started. The setup (getting your new cellphone “active”) only took a few minutes and it was an easy process. I like that - easy is good!

As soon as my new Jitterbug had active service and a new phone number, I wanted to try it out. I really liked using this phone - and I always hated cell phones before. The numbers are big and beefy, meaning they are easy to see and easy to press. On other cell phones I used in the past, I would always hit the wrong numbers because they make the buttons so small. Not with this one - because it was designed with ease of use in mind it really is easy to use.

Next, the earpiece was cushioned, which is a nice touch. But it was easy to hear which was important to me.  I talked with my daughter on the “test call” for only a minute, because I didn’t want to use all the air-time in one sitting. (This is mainly going to be used as an emergency cell phone - not a phone for idle chatting!)

The plans are easy to understand. I have a basic $15 per month plan which allows me to make 30 minutes of calls each month - which is all I need. There’s no fancy text-messaging, no video games on the phone, and no camera. (I have a real camera if I want to take pictures, for Pete’s sake!) But the phone does exactly what a phone should do - make calls, clear and loud.

So do I recommend the Jitterbug? Absolutely. It’s a great product and if you’re a senior or if you just want an easy to use cell phone - this is it.

jitterbug-cell-phone.com

Approaching retirement planning can be an overwhelming task, as there are many factors to calculate and consider. According to the 2006 Citistreet Retirement Confidence Survey, most Americans have very minimal retirement savings and have underestimated their financial needs as senior citizens. However, by taking time to create your retirement plan and taking easy precautions, retirement planning can be easy as saving a dollar a day!Creating the right retirement plan for you

To determine how and the amount of money you should save for your retirement, there are several important questions to ask during the retirement planning process:

•  What will my financial needs be during my retirement in order to lead a comfortable lifestyle?

•  What are my goals when I retire? Do I want to live in my hometown or perhaps in a more luxurious locale?

•  When should I begin my retirement planning?

•  How much income can Social Security provide me?

•  What type of retirement plan can help me effectively save for my retirement?

•  What other financial considerations will I have in my retirement?

Getting the calculations right

On average, retirement plan experts recommend that you will need 65% - 80% of your current income to sustain your lifestyle during retirement. With that said, there are many other financial factors in retirement planning to ensure that your retired days are filled with relaxation, instead of financial stress. Below are the steps to calculating exactly how much you will need upon retirement:
1. How much annual income will you need in retirement?
2. When will you retire?
3. What is the average inflation rate during your lifespan?
4. How much do you expect to generate from your investment returns annually, both prior to and after your retirement?
5. How much is the current market value for your investment portfolio, including your savings account, 401Ks, and IRAs?
6. Will your company provide you with a pension upon retirement? If so, how much will that pension be annually?
7. How much do you expect to receive annually from Social Security?

By calculating the difference between the income you need and the revenues you will receive in retirement, you can accurately gauge how much you need to save and invest now in your retirement plan to ensure a comfortable retirement.

The power of compound interest

The younger you are, and the more time you have to plan for retirement, the better prepared you will be when you retire. By utilizing the power of compound interest, you can ensure that you and your family will have sufficient savings to keep your lifestyle prosperous when you retire. By saving as little as one dollar per day into a simple savings account, in 30 years, through the power of compound interest, you will have accumulated approximately $27,000.

Now, by saving 10 dollars a day, you have exponentially increased the power of compound interest. Compounded annually at 5%, by the time you retire in 30 years, you will have accrued approximately $270,400 from only putting $300 per month away in your savings account! Even without fancy investment tools, you can save a significant amount of money when you begin early with your retirement planning.

However, if you decide to wait to begin saving for your retirement plan, you will give up a significant amount when you retire. For example, if you invest $1000 annually into an investment that provides a 10% profit, at the end of 25 years, you will have accrued approximately $108,000. However, instead of saving now and waiting five years, that $108,00 shrivels to only $63,000. By waiting five years, and thus not investing $5000, you actually lose out on over $45,000 for your retirement plan.

By starting early and having the foresight to implement a retirement plan, you simply need to save a minimal amount annual to ensure that your retirement is comfortable, luxurious, and financially stress-free!

Fear can be a very useful emotion. It helps us avoid dangerous situations in many areas of life. But when it comes to investing, more often than not, fear works against us.The idea of losing money strikes fear into the heart of even the steeliest investor. As a result, most people react and end up making investment decisions that are usually not in their best interests. And during times of market turmoil and volatility, fear-motivated decisions are really put on display.

Running scared
According to data from the Hewitt 401(k) Index, investors pulled over $765 million from equity funds within their 401(k) plan during the month of August. Plan participants moved money into fixed income investments 70% of the days in August, compared to July when investors moved money from fixed income to equities in 62% of the days.

While investors shifted the most money away from company stocks, international equity funds were a close second, losing $165 million in August, versus gaining $200 million in July. Likewise, investors moved $163 million out of large-cap equity funds and $140 million out of small-cap funds during August. In contrast, guaranteed investment contracts and stable value funds saw the greatest monthly inflows, as investors added more than $620 million to these investments. Bond funds and money market funds took in an additional $195 million during August. In general, participants seemed to be seeking the relative safety of fixed income investments in response to the turmoil in the equity markets.

After all, August was a rough month for many stocks. Tenet Healthcare (NYSE: THC) fell 35% during the month on news of a larger than expected second-quarter loss. Likewise, Countrywide Financial (NYSE: CFC) and Centex (NYSE: CTX) were hit by subprime market troubles and lost 30% and 23%, respectively. Market turmoil and uncertainty make investors nervous, and more often than not, investors’ first response is to flee equity investments.

Going against the grain
While this reaction is completely understandable, investors are really shooting themselves in the foot.

Most people normally wait until stocks have fallen before they start selling, and that doesn’t make sense. By selling after a decline, you are just locking in your losses. Similarly, most investors wait until the market shows signs of stabilizing before jumping back in. This is also counterproductive. If you wait until the market goes back up before committing your money, you’ve already missed a big part of the bounce.

Most investors are like lemmings. They simply move in the same direction as everyone else, which usually happens to be the path of least resistance. During market booms, they rush into equities, and during periods of instability, they rush for the exits as soon as the going gets tough.

Don’t be a lemming. Stay strong during market downturns and stay cautious when market euphoria takes over.

Long-term thinking
The most important thing to remember about retirement investing is that you are in this for the long haul. Even if you are in your 50s, your retirement savings may have to last you 30 or 40 years. That’s a long time to ride out market bumps. And younger investors have even longer to build up their retirement portfolio.

You don’t have to watch the market closely each and every day and adjust your portfolio accordingly. Long-term investors should keep a significant allocation to equity securities, so don’t try to move in and out of the market when the going gets rough.

Keep your focus on the long-term, and tune out the day-to-day noise of temporary market gyrations. That way, you’ll have a much greater chance of reaching your retirement goals. And the future will be nothing to be afraid of.

Finding a suitable investment professional is not easy. The number of different titles alone is enough to make your head spin. But in a nutshell, there are basically three different types of investment professionals: financial advisors, financial planners and investment managers.Financial Advisors. These investment professionals, also known as brokers, financial consultants, wealth managers and wealth advisors, are paid primarily to sell investment products and services. In other words, these professionals are primarily sales people and/or relationship managers. A relatively small percentage of these professionals have substantial analytical or academic investment experience. Hence, some financial advisors obtain an account and then outsource the investment management function to another department within their firms.

Financial Planners. These investment professionals are also sometimes known as Certified Financial Planners, wealth managers and wealth advisors. Financial planners are generalists who help clients by providing advice regarding investment management, retirement planning, tax planning, estate planning and other areas. Some financial planners also outsource a substantial portion of their investment management and other responsibilities to other professionals. Some financial planners do not have very strong investment backgrounds. In fact, many financial planners come from other professions such as accounting, law and sales.

Investment Managers. These investment professionals, also known as money managers, portfolio managers and investment advisors, traditionally have extensive analytical and academic experience. Investment managers often hold advanced degrees and may also be CFA charterholders. Many investment managers work as investment analysts during the early parts of their careers and then advance to more managerial type roles. Investment managers are normally paid primarily to invest money based on the investment objectives of their clients.

It is not easy to find a high quality investment manager willing to manage assets below $750,000. Today, some of the larger money management companies are only willing to manage smaller accounts within a cookie cutter framework. Large firms sometimes place smaller accounts on models and delegate some of the investment management responsibility to people with limited investment experience.

So where can the average person turn for sound thoughtful investment advice? I would highly recommend seeking an independent investment manager with considerable analytical and academic experience. In addition to having substantial investment experience, an investment manager should either have an advanced degree from a well-regarded school or be a CFA charterholder. You will, however, have to do your homework in order to find one of these managers willing to manage a smaller account.

What to Look For

1. Independent investment management firms. Money managers who are independent have fewer conflicts of interest.

2. An investment manager with considerable analytical and/or academic experience. Managers should be CFA charterholders and/or have good academic backgrounds.

3. Portfolio managers who are accessible. Communication is very important, especially when financial markets are volatile.

4. Small firms. At a small firm, you generally know who is managing your money.

5. Firms with conservative investment approaches. Taking excess risk very often has a negative impact on your portfolio.

6. Portfolio managers who are good listeners. Meetings with a manager are important only if the manager listens to you.

7. A portfolio manager should have experience in both good and bad markets. Down market experience is especially important, as mistakes can be very costly during bad markets.

8. Money managers who treat you with respect. A manager should never make you feel like you are asking a stupid question.

Who to Avoid

1. Most financial advisors, also sometimes known as brokers, financial consultants, wealth managers and wealth advisors.

2. Some financial planners. These professionals sometimes come from other professions and may have limited analytical or academic investment training.

3. Most accountants offering investment services. Accountants often offer their existing clients financial planning services despite having somewhat limited investment experience.

4. Any investment professional who guarantees returns.