The Guiding Influence of a Professional In a complex investment environment, where elevated volatility has dug in for the long run, many investors are looking for more than advice on where to invest. The role of many financial professionals has broadened from a portfolio growth quest to a way of preservation and guidance. There are thousands of "financial professionals" eager to guide investors. From investment advisor representatives to stock brokers, insurance agents to accountants, there are multiple resources available for investors in search of help or reassurance. These professionals help investors define their goals and develop a plan to help them reach those goals. But another great change has taken place. A Holistic Approach Given past market turbulence, emphasis has been shifting from investment performance alone to protecting assets and distributing them over the lifetimes of the individuals involved — and their heirs. "A new category of financial advisors — wealth managers — has arisen," points out Russell's Jim Guilfoil. "You call on these people to help protect core assets you need for the long term. You can always invest expendable money through a traditional investment-only broker, but you want a wealth manager to help keep your overall financial future, and your heirs' futures, secure as possible." Wealth managers take a "holistic" planning approach, looking at all aspects of a client's needs, including financial planning, estate planning and insurance as well as investments. Moreover, wealth managers play an advisory role. "The wealth manager is the quarterback or relationship manager bringing together the right team," Guilfoil emphasizes. The team might include an insurance agent and an investment advisor representative or broker as well as a trust attorney and a certified public accountant. A wealth manager may recommend some or all of these professionals. The wealth manager may also personally provide some or all of these services. The value of a wealth manager, Guilfoil asserts, "is to help clients grow, protect and distribute wealth over their lifetime, and the lifetime of their heirs. Their job is to ensure clients stay on track with their plan and help them achieve their goals." Making the Right Match You might find wealth managers at brokerage firms, insurance companies, and as independent financial planners. They can be individuals within large corporations or solo practitioners. The right one for you should be someone you easily relate to and trust. Many financial professionals carry a professional designation. These designations are typically supported by formal study and exams. A financial professional from the insurance side might have the designation, Chartered Life Underwriter (CLU). More information about the designation can be found at The American College web site. A wealth manager on the investment side might carry the designation of a Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Chartered Financial Analyst (CFA) or Certified Investment Management Analyst (CIMA). For more information on understanding these investment professional designations, go to the NASD's web site. Evaluating someone prior to beginning a professional relationship should encompass questions like the following, although this is not an inclusive list:   How did you evolve from your former position into a wealth manager? What is your wealth management philosophy — and what can you do for me? How do you engage with clients — what working process do you follow? How will you go forward once I've hired you? The answers should provide a solid comfort level based on the wealth manager's objectivity and willingness to communicate. "You want your wealth manager to be a trusted counselor — someone totally focused on what's best for you," Guilfoil states. The Ultimate Question — Compensation There are many ways financial professionals get paid. Wealth managers typically charge annual fees based on a percentage of assets under management. "Compensation for fee-based wealth managers is typically not dependent on whether a client buys or sells anything," says Guilfoil, "they can be perfectly comfortable advising you to stay the course or make no changes at all if that's the right thing to do." What do you receive in return for an annual fee? After creating an initial plan and seeing that it's implemented, wealth managers typically meet with clients on a quarterly basis — and more often if required. This involves more than just an investment review. The wealth manager will constantly revise your plan based on your changing needs. "The wealth managers may typically lay out eight quarters worth of work after establishing a new client relationship," Guilfoil said. "Their tasks may include initiating with clients the updating of trusts and wills, reviewing beneficiary designations, planning college funding for children and grandchildren and revisiting investments." Ideally, with a wealth manager's guidance, clients' thorough plans can stay on course. Fund objectives, risks, charges, and expenses should be carefully considered before investing. A prospectus containing this and other important information can be obtained by calling (866) 676-7680 or by visiting this page on russell.com. Please read the prospectus carefully before investing. Copyright © Russell Investments 2005. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell InvestmentS. It is delivered on an as is basis without warranty. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Securities products and services offered through Russell Financial Services, Inc. (formerly Russell Fund Distributors, Inc.), member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. RFD 3004. First used: November 2005.			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