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Retirement Corner

Investment Advisors vs. Financial Planners: What they are and what you need to know to select one.

When considering how much to contribute to your UTSaver retirement plans and where to invest that money, you may wish to seek the advice of a financial professional. The following points from the U.S. Securities and Exchange Commission can be helpful in selecting a financial professional to assist you.

Q: What is an investment adviser?

A: Investment advisers are in the business of giving advice about securities to clients. For instance, individuals who receive compensation for giving advice on investing in stocks, bonds, or mutual funds, are investment advisers. Some investment advisers manage portfolios of securities.

Q: What is the difference between an investment adviser and a financial planner?

A: Most financial planners are investment advisers, but not all investment advisers are financial planners. Some financial planners assess every aspect of your financial life—including saving, investments, insurance, taxes, retirement, and estate planning—and help you develop a detailed strategy or financial plan for meeting all your financial goals. Others call themselves financial planners, but they may only be able to recommend that you invest in a narrow range of products, and sometimes products that aren't securities. Before you hire any financial professional, you should know exactly what services you need, what services the professional can deliver, any limitations on what they can recommend, what services you're paying for, how much those services cost, and how the adviser or planner gets paid.

For more information on investment advisors and financial planners, please visit: http://www.sec.gov/investor/pubs/invadvisers.htm

AIG Retirement Announces New Chief Executive Officer

AIG announced that its Board of Directors named Chairman Robert B. Willumstad to the additional post of Chief Executive Officer. Willumstad succeeds Martin J. Sullivan, who is leaving AIG and its Board of Directors.

Willumstad has held senior management positions at organizations such as Citigroup, Travelers, Commercial Credit and Chemical Bank. His predecessor, Martin Sullivan, assumed the CEO position in 2005 and made significant contributions in executing the company’s strategy and building its global franchise.

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