After recent market turmoil, a few readers have asked how to find an investment adviser who can help plan a portfolio that meets expectations even in difficult markets. However, some also are wondering if this is the right time to make a change. One reader put it this way: "I am hesitating pulling the trigger [to change advisers] due to the current market turbulence."

While timing is never perfect, the reasons for wanting to make a change become clear during difficult market periods. That is to say, during volatile markets, your investment adviser's way of managing the relationship with you might raise red flags.

If you are uncomfortable with asking questions and getting answers during these markets, that discomfort could be part of the relationship.

Being in sync on risk, potential reward, cash flow expectations, taxes, inflation and legacy interests are all essential to structuring and managing a portfolio for you. Without effective communication, you are adrift in a rough sea without a lifeline. There is no need for that.

The answer is finding the right relationship, which takes some homework. Finding someone is not as easy as a Google search for "best investment adviser," unless you want to find advisers who pay for listings.

What everyone needs, especially a retiree, is communication that is transparent, lucid, real and regular.

Communication needs to be delivered in a way that makes you comfortable about how your retirement will be funded if you have a retirement income gap -- a situation in which Social Security and pensions don't cover living expenses. That's the riskiest situation for a retiree, and when a seasoned investment adviser is most important in structuring and managing the right kind of portfolio that produces cash flow, offsets inflation and taxes, and rides out market fluctuations.

Expertise is important, but that's not where the inquiry ends. The investment advisory firm and its representative also need to have a "background check."

Your resource is FINRA's BrokerCheck (brokercheck.finra.org/), or the U.S. Securities and Exchange Commission's Investment Adviser Public Disclosure (IAPD) website (adviserinfo.sec.gov). There you can look up the adviser and the firm for which the adviser works. You'll be able to read the Client Relationship Summary (Form CRS), which details the services the firm provides, the types of fees it charges, how the firm's advisers make money, what the firm's obligations are to a client, any conflicts of interest, and if the firm has had any legal or disciplinary action taken against it.

As for individual advisers, you can see how long the person has worked for the firm, the licenses the adviser has and the exams he or she has passed, and, most important, any disclosures -- be they customer complaints, regulatory actions or legal issues.

This exercise is important to weed out "bad apples" who you don't want to do business with. Attorney Niel Prosser of Prosser, Clapper & Johnson Law in Memphis, Tennessee, who represents claimants hurt by those bad apples, offers this advice: "Trust but verify." Prosser adds: "Look for red flags, such as overtrading, improper use of discretion, in-and-out trading, etc. Perhaps most important, look for 'yield to broker' -- i.e., is the broker frequently pushing expensive products that generate high commissions/markups for the broker?"

Next, you'll want to interview potential investment advisers. Form CRS, which is a disclosure form that firms must provide you, offers conversation starters to help with the interview. As a retiree, you'll want to focus on how the adviser will meet your goals. You'll also want to see the kinds of reports the adviser will give you, and make sure they are constructed in a way that is understandable for you.

You'll need to discern if the adviser and you are on the same page as far as what you want to achieve. Then, you'll want to ask yourself: Do I feel like this person wants to work with me? Do I want to work with this adviser?

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

If you are an investor, I'm going to guess that recent stock market activity has your attention. We are talking about large daily losses, the largest since the 2020 coronavirus bear market. Just this past Thursday, May 5, the Dow (Dow Jones Industrial Average) fell more than 1,100 points for a percentage decline of 3.3%.

Short-term traders can actually benefit from volatility. But most investors would rather see less volatility and long-lasting, strong uptrends. Ideal markets -- that is, stock markets that don't decline -- are nonexistent.

This is where a risk discussion comes into the equation. No matter the cause of volatility, each investor needs to accept it as part of investing in the stock market. But how? That depends on personal goals, investment experience, time horizon and the work you want your portfolio to do for you. For example, in retirement, many, if not most, investors want their investments to pay for living expenses and to increase payments as prices rise due to inflation.

The Dow has declined around 11% and the S&P 500 is down about 14% from their respective peaks at the beginning of the year, and the Nasdaq is down roughly 25% from its peak on Nov. 19, 2021.

If you are a retiree who depends on his or her investments to pay bills, you might be unsettled. But you don't need to be as long as you are following a plan that incorporates the essential elements of retirement investing that fit your particular situation. The essential elements are always the same: time horizon, which is usually based on your age ("usually," since some have longer horizons tied to legacy interests); assets available to invest (creating interest and dividends to fund withdrawals is safer than selling positions, but calls for more capital); and cash flow requirements (withdrawals to pay bills).

These elements come together after reaching an understanding of volatility, risk of loss, the effect of rising inflation on your lifestyle, tax considerations and whether you understand that the most control you have in this equation is how much you spend, especially if you are on a budget and see prices rising.

Without a plan that is customized for your particular situation, difficult market periods can lead to selling your stocks with the intention of getting back in at a "better time."

If you review historical studies, you'll probably reconsider the impulse. The "Impact of being out of the market" section in the 2022 "Guide to Retirement" (tinyurl.com/5n7kup7n) by J.P. Morgan, a financial services company, is a good resource.

Looking at Jan. 1, 2002, through Dec. 31, 2021, your return would have been 9.52%. If you missed the 10 best days, your return would drop significantly to 5.33%. Miss the best 30 days? You are down to 0.43%. As the guide notes, "Seven of the best 10 days occurred within two weeks of the worst 10 days." Conclusion: Don't think you can time your reentry without a crystal ball.

While past performance is no guarantee of future results, it does provide some insight. There will always be uncertainty when it comes to the markets.

Where you are at risk is if you need to sell stock market holdings in order to pay your bills. The answer is: Make sure your plan gives you a clear understanding of how to withdraw funds to pay your retirement expenses without selling into a down market.

If you don't have a plan, make one. Reach out to a seasoned investment adviser whose expertise is retirement investing. If you are interested in a column on how to find one, email me at readers@juliejason.com.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

Just because we're entering May after the close of Financial Literacy Month doesn't mean we put financial literacy education on hold for a year. If I had a vote, I would make every day Financial Literacy Day.

Whether it be investing, retirement planning, debt management or just day-to-day living, we can all benefit from becoming better at financial decision-making.

The economic challenges are numerous, with the rise of inflation and recent stock market volatility. The stock market as measured by the S&P 500 Index reached an all-time high as the year opened (Jan. 3, 2022), only to drop more than 10% by Thursday, April 29. The Nasdaq Composite, which peaked on Nov. 19, 2021, also an all-time high, dropped more than 18% this year. Netflix is down about 70%; Meta (formerly Facebook) is down about 40%.

To address personal family finances, cash-flow management is key -- understand the dollars that flow into and out of the household. Tools are available. FINRA (the Financial Industry Regulatory Authority), which regulates the brokerage industry, provides a sample worksheet to help examine monthly income and expenses at tinyurl.com/srjaxt5z.

There are financial challenges on the retirement front as well. According to a Bankrate survey (tinyurl.com/2p894wjb), nearly 36% of Americans said they have never had a retirement account. That means they are missing out on the value of tax-deferred growth (IRA) or more. In a 401(k), the benefit of company contributions, coupled with time, creates the optimal environment for the math of compounding to create important retirement savings.

That type of knowledge leads to more saving for retirement -- something that needs to be done. A recent report (tinyurl.com/4zf9pxbm) by T. Rowe Price, a global investment management company, found there is an estimated U.S. retirement savings gap (defined as the difference between what people saving for retirement need and what they have accumulated) of nearly $4 trillion.

Knowledge of financial needs in retirement leads to better decisions. Insured Retirement Institute's "Retirement Readiness Among Older Workers" report (https://tinyurl.com/2s3kuxs9) found only 26% of respondents correctly estimated how much annual income would be required in 10 years to maintain their standard of living. Filling that gap takes financial literacy education.

Given that data point, what can explain why studies show the vast majority of workers are confident in having enough money to retire? The Employee Benefits Research Institute's 2022 Retirement Confidence Survey (tinyurl.com/2e28wxw3) found that more than 7 in 10 workers are at least somewhat confident in having enough for a comfortable retirement.

Then again, the survey also found that nearly 4 in 10 workers (and 2 in 10 retirees) said they do not know who to go to for financial and retirement planning advice. Who do other people turn to? Thirty-five percent of workers (and 21% of retirees) said they turn to sources like family and friends, and 29% of workers (23% of retirees) said they do their own research online.

In late April, the National Financial Literacy Council released the results of a 30-question test (tinyurl.com/mse9um7x). More than 70,000 people across the U.S. took the exam, which measured the ability to earn, save and grow personal finances. While it was designed for 15- to 18-year-olds, people of any age could take it.

The results? Not good. The average score for all ages was 67.5%, with 57.5% of respondents failing to reach the passing mark of 70%.

It's one more reason to consider financial literacy education a key theme each and every day.

As a proponent of financial literacy education, I am launching the "Train the Champion" program in May, which is designed to help people have a better understanding of how a 401(k) works, and how it can be a key part of retirement planning. The Train the Champion program is part of the annual national 401(k) Champion competition that recognizes successful 401(k) participants.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION