Steve Stanganelli CFP®, CRPC®

Regardless of the type of advisor you select, you really need to spell out the type of advice you're looking for as well as your expectations. Then ask the advisor how they approach dealing with a client in your situation. Ask if they've handled the kinds of things you're asking about.

Too often the public and those in the industry simply thing that financial planning is synonymous with investing. Not every client needs investing help. Not every client has assets to invest. And regardless of how much and whether or not you are investing, true financial planning can benefit you and anyone else.

Generally, someone with a financial planning designation ascribes to a certain set of standards for ethics and professionalism. And they follow a certain approach to planning engagements. The CFP Board outlines this (see www.CFP.net). But many other professional designations do, too: ChFC (more insurance focused), CPA/PFS (the financial planning side for accountants). When interviewing an advisor, you may find the checklist and questions on the public site of the Financial Planning Association of use here: https://www.fpanet.org/FindaPlanner/ChoosingaPlanner/ .

What it sounds like you need is a combination of cash flow management, tax planning (key for small business owners), help creating an Investment Policy road map (to add structure to your investing process and take the emotion out of it - especially useful if you are a DIY investor) and estate plan. You may find that one adviser has these skill sets or works as part of a team or a larger firm with access to these resources. But you first need to ask and be clear of what you expect for your fee.

You may find it best to work with a fee only or at least a fee-based advisor; someone affiliated with a Registered Investment Adviser firm that offers planning. Some may even offer investing help as needed.

The general approach that the adviser you're looking for should take is leading with the plan and not simply trying to lead with an investment or insurance product. A good adviser focuses on solutions and does not lead with products. Remember the old adage about the carpenter: When the only tool in the box is a hammer, then all problems look like a nail.

In addition to BrightScope, you can also check out sites that list advisers based on certain pre-screened criteria: www.NAPFA.org, www.FPAnet.org, www.PaladinRegistry.com, www.NAEPC.org.

You should talk with a financial planner who can outline your options. There is more to paying for college than just saving for college. The reality is that when it comes to college there are two sets of prices: the ones paid by those who are informed and the other (higher) price paid by everyone else.

Recognize that you may not likely cover the whole cost of college yourself. In fact, the share of costs covered by parents has dropped in recent years. According to Fidelity & Investment News (8/29/11), parents were paying 16% of the tab in 2011, down from 24% in 2007.

And recognize that you don't have to pay sticker price for college. Only a small proportion of students actually pay the published rate for college. And believe it or not, it may actually turn out to be cheaper to go to a private school that has a higher price tag than an in-state public school. This is because private schools tend to cover more of a student's need than state schools which have more limited resources.

Regardless of how old your kids are, there are numerous strategies to lower the cost of college. While 529 Plans are an option for accumulating savings, they are not your only option. You need to consider Coverdells as well. You can also find financial advisors and institutions that offer the SAGE tuition rewards program for earning points that can be used to discount the college costs at more than 295 private schools.

You need to look at options to lower your costs. You need to consider tax and asset strategies to lower your expected family contribution (EFC). These include numerous tax breaks for business owners (even those who own a small solo practice as a side line business). One hint: Don't give your kid an allowance when you can pay them to do work in your business which they then can use to fund a Roth IRA that may be used for their education as well. Whether this is a side business or your main source of income, this type of tax planning can work for you to lower your EFC and fund either college or retirement - a triple win.

You may have generous relatives who want to help. That's great! But you want to make sure that they set things up right to minimize the impact on qualifying for financial aid. This certainly applies to trusts and 529 Savings Plans. I'm a fan of www.SavingforCollege.com which will cover some of this but don't forget that a knowledgeable advisor is worth his or her weight in areas like this.

And let's not forget about tried and true strategies to earn college credit that may help accelerate your student's time to earn a degree. You can find out more at www.CollegeBoard.com and www.getcollegecredit.com.

While it may be early, you can also consider the role of scholarship money in your plan. Although things may change over time, it may be a good idea to get a lay of the land. Peterson's Guide is a great resource (www.Petersons.com) as is www.CollegeScholarships.org.

Looking for ways to build up the cash for college and trying to discourage relatives from giving lots of toys at holidays? Consider using a service that helps facilitate contributions from relatives directed toward your student's 529 Savings Plan or other savings account. This is done through the College Registry service of www.eRollover.com.

There are lots of choices and options. Confusing? Yes. But you have time. And you have access to qualified financial planners who can help you through all this.

Consider calling one of us. We're here to help. First phone consultation is free - at least that's my policy. And like many of us here, I offer long-distance planning services.

www.CollegeCashPro.com www.ClearViewWealthAdvisors.com

Before investing an inheritance, I strongly recommend waiting on any large commitments for several months just to get the grieving process settled.

After that I recommend setting aside some time to consult with a financial planner familiar with both areas of investing you mentioned. There are pros and cons to investing in the market as well as in an investment property. The best way to handle this is to work with someone who will ask you the right questions so that you may make a more informed decision.

Do you want to be a landlord? What experience do you have in running a business (rental property is a business if done right)? Do you have the time to manage the property and repairs or will you need to hire contractors or a property manager? What resources do you have beyond the inheritance for repairs or capital improvements or carrying costs during vacant periods?

Do you have an emergency fund for your personal household? What are the plans for college for the kids? (Investment real estate ownership can have an impact for financial aid but there are also strategies that may lower your Expected Family Contribution and increase your chances for other financial aid, for instance).

What is your risk profile like? What experiences have you had with investing (good or bad) that have shaped your outlook on the approach to investing as well as the types of assets owned? Is there a chance that you'll be relocating in which case you may become a long-distance landlord which offers its own set of challenges?

What is your motivation for one or the other type investment that you mentioned here? I realize that mortgage interest rates are down and many property markets are firming up while rental demand has been very good but whether or not buying a property makes sense really depends on evaluating not just the numbers but what's behind those numbers. Not everyone is or should be a landlord just like not everyone is or should be a homeowner.