It’s not uncommon for people to be less than thrilled with their financial professional. Investor surveys reveal that the majority of investors would consider a change to a new adviser, and, if they knew how to do it, they would. However, in spite of lackluster results and lagging attention, many good people dislike the prospect of “firing” someone, including their stockbroker-type financial guy or gal. It can make things uncomfortable the next time you see them socially, so instead they muddle on, financially speaking. But at what cost?
Most new clients that come to our firm already have brokerage or financial firm investments. Usually these accounts were set up years ago when the dollars involved did not seem so significant, and the adviser was selected based on a pitch for an investment idea from a financial product salesperson who they knew socially. Money was added over time, and now, years later, the amount of the investment account is greater. The results seem more important as it comes closer to retirement time.
Answer this question: If improving your financial confidence “cost” you the friendship of your broker/salesperson, would it be worth it? When stated this way, most people realize that they have to do what’s in the best interest of themselves and their family rather than in the best interest of the adviser.
In The Eight Points of Financial Confidence, I describe the actions that a wealth advisory firm should be taking for their clients. It’s right there in the first chapter as an overview, and it’s an easy way for anyone to determine whether their advisory team is doing everything it should for them.
If your financial world is on a good track and you are comfortable with your advisory relationship, and most importantly with the progress you are making, stay the course.
However, if you are in that uneasy majority of people that are less than thrilled with their results, get a copy of my book and develop a plan to elevate your financial life.
My next post, part four, will tackle understanding the fiduciary standard of care.
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