Just out of College?
There's No Time Like Present
to Plan for the Future

January 9, 2005 Sunday
Daily Press (Newport News, Virginia)
CAROLYN BIDGA

A few months back, Ilene Davis, a certified financial planner, sent me her
thoughts on do-it-yourself investing, arguing that "just about every survey of
the wealthy shows that most use financial advisers."

She continued: "Gee, could it be that those smart enough to make a lot of
money and even smarter enough to save a lot of money know it sometimes helps to
have two heads."

Granted, Davis has a vested interest in the issue, but considering the myriad
financial decisions we face, we could all use a little expert help. But as a
young investor groaned in another message, not all advisers are affordable or
interested in managing just a pocketful of assets.

This seeming stalemate, on top of growing concern about financial literacy,
has alarmed the industry.

"The statistics set the stage for what we're looking at," says Carl George, a
certified public accountant and chairman of the National CPA Financial Literacy
Commission.

College students on average graduate with about $3,300 in credit card debt
alone, according to Nellie Mae, the largest nonprofit provider of student loans.
And several studies show that many young workers are not taking advantage of
employer- sponsored retirement accounts.

To counter this trend, free and low- cost resources are being rolled out to
help educate investors -- no matter their net worth -- and even provide
personalized advice.

Some employers now offer free or discounted advisory services to 401(k)
participants, though the help, which may include portfolio management, generally
is limited to your retirement planning.

For other financial dilemmas, turn to America Saves ( www.americasaves.org), a
national saving campaign headed by the Consumer Federation of America. The free
membership earns you one e-mail or telephone consultation with a financial
planner.

Citibank also offers a consultation through its Citipro financial checkup,
which pairs you with a bank representative to review your spending habits and
investment goals, among other things ( www.citibank.com). The service is free and
you don't need a Citibank account to be eligible.

If you are receiving more sales pressure than legitimate help, you may want
to consider meeting with a financial planner.

Since many financial planners charge an hourly rate, usually from $120 to
$180, instead of a commission, it's generally believed a fee-only adviser is
more objective in meeting your goals.

"Sometimes one hour is sufficient to get you up and running," says Bruce
Brinkman, a financial planner in Rockford, Ill. "And there is a free initial
consultation where we hear what your needs are and give a fee quote."

The Garrett Planning Network ( www.garrettplanningnetwork.com) is a national
database of fee-only advisers that's designed for middle-income investors and
those just starting out.

You can also search for planners through the National Association of Personal
Financial Advisors (www.napfa.org) or the Financial Planning Association
(www.fpanet.org).

Some planners may carry a certified financial planner, or CFP, title, awarded
to those who pass additional exams through the Certified Financial Planner Board
of Standards (www.cfp.net).

Brinkman also works with www.MyFinancialAdvice.com, an online advisory firm
that connects you to planners by phone or e-mail. Fees again are charged on a
per-use basis but, depending on the extent of your project, can cost from just
$10 up to $700.

To minimize your reliance on financial advisers, and therefore the fees you
pay, some do-it-yourself investing can be mastered with the help of financial
education. The American Institute of Certified Public Accountants' personal
finance Web site, www.360FinancialLiteracy.org, is a good place to start, as is
www.mymoney.gov.

And almost everyone needs some guidance. Mickey Scheffki is a CPA who helps
head the Illinois CPA Society's Young Professionals, a network of young workers
in the financial industry. Among the programs offered is personal finance
education.