European Stars and Stripes (Newspaper) - January 22, 1990, Darmstadt, Hesse                                What do financial planners want to know the following questions should give you a Good idea. They were provided by certified financial planners John Gerrish and Christopher Price. A do you plan to make any major purchases a Haw Long do you plan to remain with your current employer a after leaving the military do you have enough Money to live Lor four to six months without working a do you plan to Purchase a Home when what do you think you la need As a Down payment a what age will you be fully Able to retire a How much of today s dollars would you like to have if you die prematurely would you like your Amity to continually receive income How much would they need Road guides to Greener pastures financial planners steer the Way to smart investments by Randy Pruitt staff writer you work hard for your Money but is your Money working hard for you that s a question cd psf cipher Price and John Currish try to answer for hundreds of  in Europe. Both Are certified financial planners professionals who help steer gis Down the path 10 financial Independence and Grycner As in dollars a How Large an emergency fund would you like to have do you have any particular feelings about stocks Bonds Mutual funds or life insurance a what do you Tike most about your financial situation least 9 How do you consider yourself on a scale of aggressive to conservative do you feel guarantees Are important a have you had any prior experience with a financial planner or a stockbroker what did he or she do for you were you pleased with the results a what do you think a financial planner should do for you a How did your parents treat Money and finances pastures. They show them How to reap the highest return on their Money with inc Casl risk the Best Way to fund a child s College education How to get a big jump on retirement they re also Well versed in life insurance and tax management. A we help people build Bridges from where they arc to where they would like to be a said Gerrish who runs int Crest International equities corp. In Ramseck West Germany. A everything you do has financial consequences if you re going to Bury the Money in the Back Yard or speculate said Price of integrated financial services which has its main office in Heidelberg West Germany. A putting All your Money in cd certificates of Deposit can be just As damaging As buying speculative Stock Quot the Usa eur  investment advisers agree that finding a financial planner in Europe Isnit easy. There Are no yellow pages overseas and no better business bureaus or Consu mar Holl incs to consult. Almost anyone can Call himself a financial planner. A the word a financial planner gels abused Gerrish said. Both said they set the bulk of their business through referrals by clients and both said they encourage prospective clients to shop around before and after an initial consultation. A a its difficult to get the message to the people out there. You should get two or three opinions.1 Price said a you Don t necessarily go with a company because your buddy went with  a if a person has a financial Ptan it must be generic and not make any product recommendations Quot Gerrish said. Insurance salesmen Loo frequently push the g1 toward a product they said. Quot there is a place in the portfolio for insurance. But. For the most pan. The insurance agent makes that a Keystone of his portfolio and in some cases they re going to do More damage to this Guy than Good/1 Price said. The advisers said a financial portfolio should be diversified and Well balanced with investments in Stock and Bond Mutual funds. Individual retirement accounts Ira annuities insurance and Cash. Managing taxes effectively is also important and diversification can be accomplished with a Low budget. Planners they said favor Mutual funds because the risk Factor is greatly reduced by the volume of stocks or Bonds in int Vida funds and professional management. And there arc almost 3,000 Mutual funds each charging various fees and commissions to choose from. Prospective clients should not Feci bashful Aboul asking a planner How he will be compensated. A a it a important that a client understands what he Sci i ing and How he a paying for it Gerrish said. Gerrish said fees for planners can be either negotiated determined As a percentage of the assets under management or As a percentage of income. Price said Consumers should ask anyone Selling a particular investment How much he is making on the transaction. Quot that Way you can see if he a steering you into the product that makes him the most inc said. Quot the Mosi valuable thing a planner can do is have people set goals a Gerrish explained. Quot a lot of people done to have any until they sit and think Aboul it a Price and Gerrish said a clip Nln a tolerance for risk must be  they think a risk is pulling Money in a Bank you be got to Deal with that Quot Price said. Gerrish said he recommends a Jong lorm investment approach to clients. In a m military Market a Soldier generally first places his savings in savings Bonds. Cd or the credit Union. A you have to realize taxes and inflation Are going to do an awful lot to these kinds of returns Gerrish Sard. While cd have paid returns from s to 10 percent the average  Mutual fund Over the past 10 years has yielded 18 percent. A and that includes the october 87 drop Quot lie said. A we re very conservative with our people in setting goals but i feel very comfortable about Tell ing people they ought to be Able to get 14 to 15 percent on their Money if they have a Good  Price and Gerrish said i hair jobs Are made More pleasurable when clients participation i n investment decisions increases. A part of my Job is education a Price said. A i give Oul subscriptions log Money Magazine a Gerrish said he often photocopies articles and educational material for his customers. A a people Are Bucom ing More and More aware of inc financial picture a Price said. Rut while some people become financially astute others choose to put off thinking about he future. A a m Ost people think their ship s going to come in by 11 Hev la be waiting by the docks their whole lives/1 of a Ricc  combining term insurance with other investments May be the Best Way to save and still protect the family Brandy Pruitt staff writer life insurance is it a smart Way to fatten your pocketbook while protecting loved ones a insurance experts say yes that permanent or whole life policy can be More than Mere insurance. They say it also can be a sound financial invest Cal a Way to build equity while deferring i axes. However that Flics in the face of the conventional Wisdom that says buy lower cosi term insurance and invest the difference. Term insurance premiums Are much lower but the policy offers no Cash value. Premiums also increase with age. With whole life the customer pays a set monthly amount based on ape for the life of the policy while the Cash value continues to grow. Premiums never change. The policy Holder while being insured builds a nest egg. The dual benefits of course Cost More. Gary Aiello marketing director for american International financial services corporation in Litzendorf West Germany says what is right for continued on Page 4 Prudential insurance agents Jan Hudson left and Leslie Gillespie in their office in Mannheim West Germany january 22,1990 ass financial planning guide 13