Once in a while I’ll go to the local barnes and nobles and read a couple of books over a 6 hour period. Last night was one of those days. I actually went to check out a programming book. Right next to the computer isle was a table of personal finance books. One book caught my attention. I spent 2 hours and skimmed the entire book.
Its called Zero to Zillionaire.

It starts off explaining how having a wealthy atracting mindset is of immense importance. If you have hangups about money and charging people for services, you’ll never be able to make or keep money. Also had a nice analogy about the different types of people and ancient sea voyages, dividing people into 3 types – merchants, crew members and passengers. The merchants are investors and business owners who take all the risks, the crew members are employees doing what they’re told, and the passengers[and stowaways] are along for the ride but do as they please. Its an easy read and falls in the “psychology of investing/wealth building” category. I ilked it much more than the millionaire mindset series by T. Harv Ecker.

I believe having a winning mindset really does attract wealth. Everything in life is 90% mental. Whether you’re running a race or investing. If you don’t have the mental strength or the right mindset you don’t do the things that are vital to achieving success.

Got a call from a Financial Planner today. I had attended a radio-station sponsored event hosted by the famous marketing expert, Janet Switzer several months ago and now I was on the mailing list for affiliated radio show hosts.

This financial planner is co-host of a radio show called Wealth Building Wednesday. I don’t have anything against warm calls but how do I know if he’s any good and if he can actually help me. Luckily I pulled out my questionaire for choosing a financial planner.

10 Questions to ask a Financial Planner
1. What experience do you have?
Find out how long the planner has been in practice and the number and types of companies with which she has been associated. Ask the planner to briefly describe her work experience and how it relates to her current practice. Choose a financial planner who has experience counseling individuals on their financial needs.

2. What are your qualifications?
The term “financial planner” is used by many financial professionals. Ask the planner what qualifies him to offer financial planning advice and whether he is recognized as a CERTIFIED FINANCIAL PLANNER™ professional or CFP(r) practitioner, a Certified Public Accountant/ Personal Financial Specialist (CPA/PFS), or a Chartered Financial Consultant (ChFC). Look for a planner who has proven experience in financial planning topics such as insurance, tax planning, investments, estate planning or retirement planning. Determine what steps the planner takes to stay current with changes and developments in the financial planning field. If the planner holds a financial planning designation or certification, check on his background with CFP Board or other relevant professional organizations.

3. What services do you offer?
The services a financial planner offers depend on a number of factors including credentials, licenses and areas of expertise. Generally, financial planners cannot sell insurance or securities products such as mutual funds or stocks without the proper licenses, or give investment advice unless registered with state or Federal authorities. Some planners offer financial planning advice on a range of topics but do not sell financial products. Others may provide advice only in specific areas such as estate planning or on tax matters.

4. What is your approach to financial planning?
Ask the financial planner about the type of clients and financial situations she typically likes to work with. Some planners prefer to develop one plan by bringing together allof your financial goals. Others provide advice on specific areas, as needed. Make sure the planner’s viewpoint on investing is not too cautious or overly aggressive for you. Some planners require you to have a certain net worth before offering services. Find out if the planner will carry out the financial recommendations developed for you or refer you to others who will do so.

5. Will you be the only person working with me?
The financial planner may work with you himself or have others in the office assist him. You may want to meet everyone who will be working with you. If the planner works with professionals outside his own practice (such as attorneys, insurance agents or tax specialists) to develop or carry out financial planning recommendations, get a list of their names to check on their backgrounds.

6. How will I pay for your services?
As part of your financial planning agreement, the financial planner should clearly tell you in writing how she will be paid for the services to be provided.

Planners can be paid in several ways:

* A salary paid by the company for which the planner works. The planner’s employer receives payment from you or others, either in fees or commissions, in order to pay the planner’s salary.
* Fees based on an hourly rate, a flat rate, or on a percentage of your assets and/or income.
* Commissions paid by a third party from the products sold to you to carry out the financial planning recommendations. Commissions are usually a percentage of the amount you invest in a product.
* A combination of fees and commissions whereby fees are charged for the amount of work done to develop financial planning recommendations and commissions are received from any products sold. In addition, some planners may offset some portion of the fees you pay if they receive commissions for carrying out their recommendations.

7. How much do you typically charge?
While the amount you pay the planner will depend on your particular needs, the financial planner should be able to provide you with an estimate of possible costs based on the work to be performed. Such costs should include the planner’s hourly rates or flat fees or the percentage he would receive as commission on products you may purchase as part of the financial planning recommendations.

8. Could anyone besides me benefit from your recommendations?
Some business relationships or partnerships that a planner has could affect her professional judgment while working with you, inhibiting the planner from acting in your best interest. Ask the planner to provide you with a description of her conflicts of interest in writing. For example, financial planners who sell insurance policies, securities or mutual funds have a business relationship with the companies that provide these financial products. The planner may also have relationships or partnerships that should be disclosed to you, such as business she receives for referring you to an insurance agent, accountant or attorney for implementation of planning suggestions.

9. Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?
Several government and professional regulatory organizations, such as the National Association of Securities Dealers (NASD), your state insurance and securities departments, and CFP Board keep records on the disciplinary history of financial planners and advisers. Ask what organizations the planner is regulated by and contact these groups to conduct a background check. (See listing at right.) All financial planners who have registered as investment advisers with the Securities and Exchange Commission or state securities agencies, or who are associated with a company that is registered as an investment adviser, must be able to provide you with a disclosure form called Form ADV Part II or the state equivalent of that form.

10. Can I have it in writing?
Ask the planner to provide you with a written agreement that details the services that will be provided. Keep this document in your files for future reference.

The WSJ has an excellent article on PATs or Private Annuity Trusts. Yet another reason to subscribe to it.

Critics — and even some promoters — say that the private annuity trust strategy has downsides and isn’t for everyone. “Contrary to the claims of promoters, it is a very risky transaction and in any event it will likely cause you to pay more tax than had you not done the transaction in the first place,” says Atlanta tax lawyer Kevin McGrath, who recently wrote an article critical of the tactic in the tax journal “Tax Notes.”

For one, a private annuity trust doesn’t eliminate capital-gains taxes; it just defers them. On each annuity payment, you’ll owe taxes on both capital gains as well as ordinary income, which is taxed at a higher rate. And if you outlive your life expectancy, all of the annuity payments beyond that point will be taxed at ordinary income rates, according to tax rules. Also, the trust itself has to pay taxes on its earnings over the years, depending on how the assets inside it are invested.

Another caveat: Because these trusts are irrevocable, once you sell your property, you don’t have any direct control over how the proceeds are invested. Instead, a separate trustee manages the assets. You also can’t simply invade the trust to get more money beyond the annuity payments.

If you get pitched a private annuity trust, it’s smart to have an independent lawyer and tax adviser carefully study the transaction to make sure that it passes legal muster, and to model projections on whether the arrangement works for you, depending on your age and income needs.

As soon as I fully understand how they work, I’ll write a post on PATs myself. If anyone wants the entire article, email me at [email protected] .

The Wall Street Journal had a nice article on Opening Your First Investment Account.

• Don’t just open your account with anyone offering you a free IPOD.
  Although free IPOD’s are great, its not necessarily in your best interest.
• Figure out how much hand-holding you require.
  Do you need to go full-service[full commission] or discount brokerage?
• Will you be buying securities or mutual funds?
  Most brokerages charge different amounts for these and some are cheaper for one while being more expensive for the other.
• Are there account minimums or extras for opening an account?
  Basically look for junk fees.

Here are some related posts:

• Why your stock broker will always be richer than you.
• Bank of America Investment Accounts
• Discount brokerage offering $100

The Wall Street Journal today reported that Vonage has denied all rumors that its going to let its customers off the hook if they no longer want their lousy shares!

This is quite a change from its now alleged stance a couple of days ago. This will just serve to alienate its customers even more. Wonder how this rumor even got started? Let me paraphrase the good ol WSJ

But CNBC yesterday reported Vonage issued the network a statement on Sunday stating that it wanted to avoid “alienating” its customers. If “certain” customers who refused to buy the shares didn’t pay, Vonage expects “to repurchase shares from the underwriters if necessary,” CNBC reported.

So I guess CNBC started it.