Five Grades of Financial Advice
In my last post I talked about the young millionaires, many 35 and younger, and the hidden risks of not seeking financial advice; opting instead for a do-it-yourself approach. To the credit of this budding wealth creator crowd, the financial services industry has been big, slow, and expensive to work with, and as the next generation of wealth creators, you are demanding something better.
If this is you, then what are the telltale signs of financial advice that can add value to your life AND be worth paying for?
Here’s your grading guide:
- Access to information about subjects you care about and that can be consumed easily and quickly. This would mean electronic newsletters, blogs, videos that address areas of need and that are in short bit sized nuggets. The ability to create thought leadership that is timely and interesting.
- Information that is focused on you. Valuable opinions and information about subjects that can improve your life instead of how important and successful the advisor or investment company is.
- Interested in finding and interacting in the places you like to be, when you want to. This would suggest communicating with you in ways you enjoy, whether that be through twitter, email, Skype, and questions and comments via blogs.
- Transparent communication. Do you really understand what they do, who they are, and why it matters? If value isn’t communicated effectively then I would argue it isn’t present.
- Value that can be experienced in every interaction. A clear willingness to help you get where you need to go, and not only if you buy something or sign a contract. If this happens, and you see tangible progress towards your goals, the cost will become less and less relevant.
There is no grading on a curve. Finding someone who consistently gets an “A” is the key to keeping your wealth and increasing the probability that you live a life filled with joy and significance. Don’t just assume that because you can’t find an A player that do-it- yourself wealth management is the binary alternative. While it can be a reasonable option for some people, for most faced with the decision, it can be the single biggest mistake you could make.
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2 Responses to “Five Grades of Financial Advice”
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April 6th, 2011 at 2:22 pm
Dick Says:What’s the most important thing to consider when selecting a financial planner and the company he/she represents?
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April 6th, 2011 at 5:48 pm
John Christianson Says:Great question and something that has received lots of exposure from a traditional standpoint of experience, education, specialty, firm size, etc. Other critical and less talked about criteria include things like: communication style, do you trust them, do you fit with the kind of clients they serve, what conflicts of interest do they have, how do they deliver the service and is this what you want, how are they growing and changing personally and professionally, how much time and attention can you expect to get (ratio of clients to employees will tell you a lot), what is the strategic plan for the firm over the next 3-5 years, what is the contingency plan for the firm, and do they have case studies of other clients that you can reasonate with. This is off the top of my head but hopefully will help you think about this important decision. Let me know if you need more texture.
