You’ve verified the financial planner’s education and certifications, gotten the compensation arrangement in writing and denied access to your accounts. Now don’t make these:
No service provider can be all things to all people and still be effective. The requirements of a 20- or 30-something just beginning the journey of financial planning differ greatly from the needs of a 50- or 60-something. The best financial advisors have honed their skills for a particular client at a particular stage of life.
The reason Bernie Madoff’s $65 billion Ponzi scheme worked is because he had access to his clients’ accounts. Recent laws now try and prevent a Madoff repeat, but it’s still up to you to keep control. If your advisor is the trustee of your trust, can write checks for you or you don’t get quarterly statements from a third-party custodian, your advisor has custody of your money and you should beware.
How your financial planner gets paid can greatly influence the products he recommends to you. For instance, a commission-only compensation arrangement could mean the advisor is making recommendations based on financial products that pay the highest commission to him. You want a someone who works under a fee-based compensation arrangement, and be sure to have that in writing.
Such statements may or may not be true in the short term; but in the long term it is outrageously difficult to achieve returns that outpace the market average. What’s more, it means exposing your wealth to much higher risk.
The best financial planner/client relationships are built upon open, candid communication. That can only happen when both parties feel at ease with one another. A good financial advisor is interested in your family, your goals and any life or work events that can affect your plans for retirement.
You can profit immediately and assist our preparation by sharing some information and submitting the form below. Ryan has a $150 debit card to enjoy a fine dining experience at either The Palm Restaurant in Charlotte or The Pump House in Rock Hill, South Carolina.
Ryan Poterack has the courage to ask very thoughtful questions and the humility to listen intently which creates a relationship dedicated to achieving your retirement goals.