Regrettably, some people don’t begin planning their retirements soon enough, nor do they fully understand how to maximize their earnings to prepare for their later days. This is due in part to the lack of solid mutual funds investing advice. There’s actually plenty of good free financial advice available, but you usually have to pay if you want the information customized to your needs. So, many people opt to go it alone, only to discover too late that they won’t have what they need to retire. That’s why it’s a good idea to use a financial professional to help you plan your retirement. And because it’s your hard-earned money, you owe it to yourself to do your homework first so you can ask informed questions of the financial advisor. Learning the financial ropes a bit in advance can also lower the financial consultant’s bill.

Here are some of the subjects you should know before you hire a professional financial advisor:

How insurance impacts your financial bottom line
Some people don’t need information on variable universal life insurance and other forms of insurance protection because they don’t have anyone depending on them and causing them to need life insurance. But those who do should make sure they understand what they’re buying. Knowing the difference between universal life, term life and variable universal life (VUL) will help you choose the right option for your circumstances. And I’ll clue you into one fact right from the start: cash value policies, such as whole life and universal life usually provide the worst return on investment and will often leave your loved ones with inadequate coverage. So you should bear that in mind when you talk to a consultant.

The differences between no-load and load mutual funds
Some financial consultants get commissions on sales instead of an hourly rate, so it’s in their best interest to suggest “load” funds (those that have service fees). This is why it’s sometimes better to pay by the hour for financial consulting, so you can ensure the advice is objective. Once you understand the financial difference between no-load and loaded funds, you’ll see why.

Have an idea when you want to retire and how much you’ll need to save
It’s a good idea to know approximately when you’ll retire and how much money it will take to maintain your lifestyle before you meet with a financial planner. That will help him or her to work with you to create a plan to get you where you need to go.

Once you’ve done the homework above, there’s just one more thing to do: make some inquiries of the people you know if they can recommend someone before you pick a financial consultant to work with. Once you have that information, see if the candidates have built wealth in their own lives. If you don’t see evidence of that they did it for themselves, there’s no way they’ll be able to do it for you!