Showing posts with label Finding a financial advisor. Show all posts
Showing posts with label Finding a financial advisor. Show all posts
Monday, February 2, 2009
Advisor=Scapegoat -- One More Benefit to Consider
A couple of weeks back we posted an article enumerating the benefits of working with a financial planning professional. Over the weekend, it occurred to me that we missed one of the valuable services we offer to our clients.
Many times clients tell us that they have no trouble holding down spending for themselves, but it's too hard to say "no" to their children and grandchildren. In many instances, we have become the go-to excuse for clients trying to get these expenditures under control. They don't want their kids to be mad at them, but can blame those witches -- Veena and Annette -- who won't let them shower the grandkids with gifts or pay for lavish family vacations .
We're happy to be the bad guys. The kids won't love us now, but may be grateful someday when mom and dad aren't eating dog food in their eighties!
Annette
Copyright 2009 The Money Dames
Monday, January 19, 2009
Why Work with a Financial Advisor?
Does working with a professional advisor make a difference? We think the answer is a resounding yes. Here’s why:
1. We help clients set and stick to their most important life goals. That is huge. Most people think about what is important. Few write down those goals, even fewer monitor those goals, and an even smaller percentage measure to see if their goals are being met. Advisors who practice holistic planning help with that process. It is often profound for clients to realize after working with advisors for several years how much progress they have made toward their goals.
2. We lead clients through mature, objective and deep conversations about very important family planning issues. Most couples avoid discussing contentious money matters and when they do it often devolves to a very emotional exchange, even an argument. As an objective, knowledgeable and trusted advisor we facilitate difficult discussions in a non-judgmental way. Moreover we help by providing advice and feedback based upon our years of experience. Often, this is akin to counseling albeit with three cups of technical advice, a teaspoon of humor and a half cup of reality testing questions.
3. Fiduciary, fee-only advisors evaluate clients’ financial situations objectively and weigh their options with only the clients’ financial success in mind. Because we are paid by and answerable only to our clients, we can help them cut through and ignore the noise. TV, newspapers, and websites are full of conflicting and often contradictory advice; friends and neighbors brag about their investment successes. Often this random information sounds impressive and compelling – but it may not be accurate or appropriate for every individual’s situation. A professional who knows the totality and specifics of her clients’ personal circumstances can protect them from chasing after the can’t-miss investment of the week.
4. A good advisor is a great resource for clients to help them manage their busy lives. We know smart, ethical attorneys, accountants, mortgage brokers and professional coaches, useful websites, pertinent books, strategies for problem solving, etc. Clients are consumed with their day-to-day activities and seldom come up for air to think about alternative ways of solving issues. We have extensive networks and can refer them to resource professionals who can help make their lives easier.
5. We serve as a sounding board, helping clients think through tough issues. At times that may mean we protect them from themselves by heading off bad decisions. In the horrifying days of mid-October, who didn’t contemplate going all to cash and wondering if any of their portfolio should be in the equities market? We provide sound advice in the heat of the moment to help them stay calm, reduce the emotion and make a rational choice based on facts, not hearsay. That model of measured advice and help in difficult times only comes from a trusted advisor—not from a salesperson.
1. We help clients set and stick to their most important life goals. That is huge. Most people think about what is important. Few write down those goals, even fewer monitor those goals, and an even smaller percentage measure to see if their goals are being met. Advisors who practice holistic planning help with that process. It is often profound for clients to realize after working with advisors for several years how much progress they have made toward their goals.
2. We lead clients through mature, objective and deep conversations about very important family planning issues. Most couples avoid discussing contentious money matters and when they do it often devolves to a very emotional exchange, even an argument. As an objective, knowledgeable and trusted advisor we facilitate difficult discussions in a non-judgmental way. Moreover we help by providing advice and feedback based upon our years of experience. Often, this is akin to counseling albeit with three cups of technical advice, a teaspoon of humor and a half cup of reality testing questions.
3. Fiduciary, fee-only advisors evaluate clients’ financial situations objectively and weigh their options with only the clients’ financial success in mind. Because we are paid by and answerable only to our clients, we can help them cut through and ignore the noise. TV, newspapers, and websites are full of conflicting and often contradictory advice; friends and neighbors brag about their investment successes. Often this random information sounds impressive and compelling – but it may not be accurate or appropriate for every individual’s situation. A professional who knows the totality and specifics of her clients’ personal circumstances can protect them from chasing after the can’t-miss investment of the week.
4. A good advisor is a great resource for clients to help them manage their busy lives. We know smart, ethical attorneys, accountants, mortgage brokers and professional coaches, useful websites, pertinent books, strategies for problem solving, etc. Clients are consumed with their day-to-day activities and seldom come up for air to think about alternative ways of solving issues. We have extensive networks and can refer them to resource professionals who can help make their lives easier.
5. We serve as a sounding board, helping clients think through tough issues. At times that may mean we protect them from themselves by heading off bad decisions. In the horrifying days of mid-October, who didn’t contemplate going all to cash and wondering if any of their portfolio should be in the equities market? We provide sound advice in the heat of the moment to help them stay calm, reduce the emotion and make a rational choice based on facts, not hearsay. That model of measured advice and help in difficult times only comes from a trusted advisor—not from a salesperson.
Annette Simon
Copyright 2009 The Money Dames
Monday, December 22, 2008
Vote for What??
(Note: Voting on this issue on Change.org ended on 12/31/2008. It did not make it past the first round.)
Does your financial advisor put your interests first? It seems like a simple question with an obvious answer. Who would work with an advisor who did NOT put the clients' interests first at all times?
If you are working with an advisor who is a representative of a brokerage firm or bank, that's what you are doing. By definition, the primary obligation of a registered representative is to the broker-dealer he/she works for, not the clients. Moreover, when recommending products, a registered representative is only required to consider whether the product is "suitable", not whether the actions he or she is recommending are in the best interest of the client.
It sounds like so much legalize, but this is the difference between a fiduciary standard and the lesser standards most people who call themselves financial advisors are held to. This softer standard contributed tremendously to the chain of irresponsible actions that came together to create the sub-prime crisis and the near collapse of our economy.
Now, the Obama administration is asking for Americans to get involved and to vote for new ideas that can help change the course of our country in the future by visiting their website, change.org. Because there are hundreds of ideas already posted on change.org, we've made it easy for you to get started. You can vote for a fiduciary standard for all financial advisors by clicking on the link in our sidebar. This will take you to the change.org site where you can also look for other ideas and causes you may want to support.
This is an opportunity to speak up and say that you want a financial industry that puts consumers first. With enough votes we might make a difference. If we don't speak up the future will almost certainly be more of the same.
Until the law requires all advisors to put their clients first, you can find financial advisors who annually sign a fiduciary oath by visiting NAPFA - the National Association of Personal Financial Advisors. You can also learn more about fiduciary standards at Focus on Fiduciary. Learn what questions to ask and how to find an advisor who is truly on your side. You deserve nothing less!
Annette Simon
Copyright 2009 Garnet Group LLC
Does your financial advisor put your interests first? It seems like a simple question with an obvious answer. Who would work with an advisor who did NOT put the clients' interests first at all times?
If you are working with an advisor who is a representative of a brokerage firm or bank, that's what you are doing. By definition, the primary obligation of a registered representative is to the broker-dealer he/she works for, not the clients. Moreover, when recommending products, a registered representative is only required to consider whether the product is "suitable", not whether the actions he or she is recommending are in the best interest of the client.
It sounds like so much legalize, but this is the difference between a fiduciary standard and the lesser standards most people who call themselves financial advisors are held to. This softer standard contributed tremendously to the chain of irresponsible actions that came together to create the sub-prime crisis and the near collapse of our economy.
Now, the Obama administration is asking for Americans to get involved and to vote for new ideas that can help change the course of our country in the future by visiting their website, change.org. Because there are hundreds of ideas already posted on change.org, we've made it easy for you to get started. You can vote for a fiduciary standard for all financial advisors by clicking on the link in our sidebar. This will take you to the change.org site where you can also look for other ideas and causes you may want to support.
This is an opportunity to speak up and say that you want a financial industry that puts consumers first. With enough votes we might make a difference. If we don't speak up the future will almost certainly be more of the same.
Until the law requires all advisors to put their clients first, you can find financial advisors who annually sign a fiduciary oath by visiting NAPFA - the National Association of Personal Financial Advisors. You can also learn more about fiduciary standards at Focus on Fiduciary. Learn what questions to ask and how to find an advisor who is truly on your side. You deserve nothing less!
Annette Simon
Copyright 2009 Garnet Group LLC
Thursday, December 18, 2008
What's an Investor to Do?
Here's a press release from our professional association, NAPFA, that provides excellent guidance for investors worried about the safety of their portfolios:
http://www.napfa.org/userfiles/file/Madoff%20Opinion%20Release%20-%20121608.pdf
http://www.napfa.org/userfiles/file/Madoff%20Opinion%20Release%20-%20121608.pdf
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