Any tips on finding a good personal accountant/advisor?

November 28, 2004 9:05 AM

MoneyFilter.....

Any tips on finding a good personal accountant/advisor? I am in the IT field and money management is not my forte.
posted by keep it tight to Work & Money (9 answers total)

If you make less than six figures, learn to do it yourself. Seriously. It's complicated, but not difficult, and wiser than paying someone who prioritizes his profits over your savings.

I posted about this subject a few months ago. Am I qualified? I can't speak intelligently about economics, but I've been successful with my own finances. My debt is negligible, I'm able to enjoy occasional luxuries, and I've gotten a headstart on my retirement. My point is, if I can do it, anyone can.

On the other hand, if your income is substantial you'll need more than the Finance shelves at Barnes & Noble to understand the mechanisms available to you. In that case, a personal advisor may help a great deal. And aside from soliciting referrals from people you trust, I haven't any advice on how to find one.
posted by cribcage at 11:27 AM on November 28, 2004

Get someone who works for a fee, not a comission. Otherwise, you're really just hiring an insurance salesman.
posted by spilon at 12:42 PM on November 28, 2004

Honestly, I would second the recommendation to learn it yourself. It is better to be informed, and it's not worth it to have a financial advisor unless your net worth is approaching 7 figures.

Their financial plan for you would entail giving them your money.... OK?
posted by ac at 1:05 PM on November 28, 2004

Response by poster: Thanks, I think it's time I start hitting the books.
posted by keep it tight at 1:59 PM on November 28, 2004

So the overwhelming recommendation here is "keep it tight"? Funny. Next up, "All my Koi are smiling - did I do something right?" by fishfucker.

Anyway, maybe this is your best option - but my husband and I have so little money it's pathetic, yet we have an accountant, because we are also idiots. Idiots who freelance, and would surely manage to utterly tangle ourselves up legally otherwise. If you do think about getting an accountant, you can check some articles like salary.com's How to Select an Accountant.
posted by taz at 4:12 PM on November 28, 2004

Any book suggestions?
posted by ajr at 8:10 PM on November 28, 2004

I think it partly depends on how complicated you are (especially if you run your own IT op versus working a T4 job) but if you have investments, alimony, dependents, medical expenses, retirement plans, rental income, royalties, donations it can become complicated. There are situations where a good accountant can save you ten times their yearly fees.

That said, read up as well.

T4 = salary-based job.
posted by philfromhavelock at 9:07 PM on November 28, 2004

Any book suggestions?

I've tried Charles Givens, Stanley & Danko, Suze Orman, etc. I've learned a bit from them collectively, but none warrants individual recommendation.

On the other hand, there's J. Paul Getty and Benjamin Franklin. I'm a sucker for the classics. Consider them rubber-stamped.
posted by cribcage at 11:05 PM on November 28, 2004 [1 favorite]

yet we have an accountant

You may want to consider a tax program on the computer like TurboTax (or some other company's). They've really gotten a lot better, and appear to deal with even a lot of more esoteric stuff. Certainly freelancing doesn't seem like it would be a problem.
posted by RikiTikiTavi at 8:45 AM on November 29, 2004