Actively managing investments takes time and resources. As a portfolio grows, managing it often becomes even more time consuming and complicated. During volatile markets in particular, management decisions might be made based on emotion or an attempt to time the market, or a portfolio might become less diversified than it once was. Investors often can become overwhelmed at the prospect of handling their own investments. Most financial professionals, on the other hand, have the technology, the time and the knowledge to help clients make informed decisions based on research and reason, rather than emotion.

Finding the right financial professional
It takes some searching to find someone with the right level of experience to handle investments effectively. At the outset, many questions should be asked. Communicating goals and concerns up front helps to bring out the qualities and expertise that a professional has to offer, and one might find it easier to determine if a particular investment represents a good fit for one's particular financial situation.

Consider following these steps:

Step 1

Gather financial professional recommendations from friends, family, co-workers, attorneys or local professional organizations. Contact state and federal regulatory organizations, including the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) for information concerning a particular investment professional.

Step 2

Gather all your financial information. If a simple overview of the estate does not exist, complete the worksheet provided in the right column. Potentially include copies of the most recent account statements and the most recent pay stubs.

Step 3

Based on one's current financial status, determine long- and short-range goals and why consulting a financial professional is necessary. Discuss the situation with several potential financial professionals to find out whose skills or areas of expertise align with one's needs and interests.

Step 4

Begin interviewing various financial professionals. This can start on the phone, but face-to-face interviews with a narrowed-down list of candidates are essential. Ask about educational background, work experience, client demographics, etc. To help get you started, see the list of financial professional interview questions available to the right.

Step 5

Once the right fit is found, request the financial professional's list of references and contact each person When you are comfortable with your choice, contact the financial professional to begin evaluating your financial plan.

Step 6

Maintain a relationship with the financial professional that is based on effective communication. Know what the financial professional is doing, and plan on meeting with him or her at least annually for a face-to-face checkup of one's investment portfolio. Keep detailed records and file all financial communications and correspondence for future reference. Remember that everyone goes through major life changes, and these changes might impact the overall financial plan; keep the financial professional updated.

Compensation options: Commissions

The financial professional may receive payment for:

• Buying and selling shares of stock
• One-time transactions, such as investing in load mutual funds, or selling annuities or cash-value life insurance policies
• Annual services, such as commissions paid to insurance agents upon policy renewal

Fee-based

The financial professional may charge a percentage of total assets on an annual basis. Be sure to clarify what the annual percentage charge is, when it is taken and what it is based on. For example, the fee may be calculated from all assets based on personal balance sheet, or it may involve just the assets that the financial professional manages.

Hourly rate

This method is similar to the way lawyers charge their clients. The fee is simply based on the time that a client spends with the financial professional receiving financial assistance on an as-needed basis. Consultations are driven by the clients requests and individual circumstances.

One-time financial plan

This type of service can be comprehensive, providing a detailed plan that outlines how to proceed. The implementation of the plan is left to the investor. The financial professional provides no follow-up to monitor progress.

Financial professionals and Nationwide Funds
Many of our products are offered through a network of over 500 financial professionals and wirehouses. Once a financial professional is found, ask him or her how a Nationwide Fund may fit into your portfolio based on your needs. Certain aspects of financial planning also may require the services of an accountant or a lawyer; consult one or both of these if the situation warrants such services.

Professional organizations

Below is a list of some of the most common academic degrees among the dozen of existing professional designations and licenses used by financial professionals. Refer to the agency granting the credential for details. It is important to remember that credentials and designations are only a couple of factors to consider when choosing a financial professional.

Chartered Financial Consultant, ChFC, www.theamericancollege.edu
Certified Public Accountant, CPA, www.aicpa.org
Master of Business Administration, MBA, www.mbainfo.com
Registered Investment Advisor, RIA Registered Representative, RR or Broker, www.finra.org