COLUMBUS, Ohio (WLIO) – October is Financial Planning Month, and the state of Ohio is reminding residents to stay on top of their financial goals.
A recent study found that nearly half of Americans do not have a written financial plan for their long-term savings goals. Even for those investing in a 401(k) or IRA, officials say there are additional steps that can help prepare for retirement.
According to the Ohio Department of Commerce, 61% of Ohioans have not determined their investment needs. State officials recommend talking to a financial adviser to stay on track — but they also caution that finding a qualified professional requires some research.
“There are ways that you can verify and check whether or not the person that's giving you investment advice is actually licensed to give you that advice. If they are not, you really want to take a step back and consider whether or not they have the expertise, the education, the insights to really help you guide your money. Remember, your money is in your control as long as you have it, but as soon as you sign it over, it can be very hard to recover it, so make sure you're taking your time, make sure you're doing your homework before you send it over,” said John Crist, director of compliance for the Ohio Division of Securities.
In recognition of Financial Planning Month, the Ohio Department of Commerce Division of Securities is highlighting smart strategies for Ohioans looking to choose the right financial adviser or investment service.
A study by Allianz found that nearly half of Americans do not have a written financial plan for their long-term goals. Additionally, among those who contribute to retirement plans such as a 401(k) or IRA, 59% said they were unsure what else to do to prepare for retirement.
“Professional financial advice can be incredibly helpful and valuable in such a complicated and ever-evolving landscape of financial investments,” said Ohio Securities Commissioner Andrea Seidt. “But it's equally important to make sure you choose someone who understands your own unique financial goals and will approach their work with that in mind.”
The Division of Securities recommends Ohioans take the following steps when evaluating potential financial professionals:
- Conduct a background check: Verify credentials and check for any disciplinary history using FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure website. For state-specific information, contact the Ohio Division of Securities at 1-800-788-1194 to confirm if a firm or broker is licensed to do business in Ohio.
- Ask the right questions: Be direct when interviewing potential advisers. Ask about their experience, compensation structure, and services provided. Determine whether they act as a fiduciary adviser or in a sales capacity.
- Understand how advisers are paid: Request a clear explanation of all fees and commissions. Transparency is key — there should never be pressure to make a quick decision or purchase a product without understanding its costs and risks.
- Ensure advisers understand your situation: Choose an adviser experienced with clients in similar financial situations, whether that involves retirement planning, student loans, or family budgeting.
- Act immediately if fraud is suspected: Anyone who suspects fraud can contact the Division of Securities’ Investor Protection Hotline at 877-683-7841 or visit the Division’s website for more resources.
