Wrong. Can just anyone do our jobs? Of course not. Then how can we think we’re capable of doing a financial advisor’s job? I’m talking about professionals who spend eight-plus hours a day on the job and several years studying to be experts in their field.
I relish clients who take nothing for granted and question everything they read, don’t hesitate to question everything advisors do, and don’t blindly accept everything advisors recommend because they are experts. Putting aside the training, expertise, and experience, not even advisors are infallible. They’re human beings who make mistakes— infrequently, we hope. I love skeptical, knowledgeable clients, because they take a proactive approach and keep advisors razor sharp. If they disagree, or they don’t understand the recommendations, they call to ask for explanations. Top advisors welcome interactive relationships with their clients. Not only do they trigger confidence in the decisions, but they also keep the advisor super vigilant. The result is productive, open, relaxed client-advisor relationships.
I urge clients to read respected financial magazines like Money, Fortune, and Kiplinger’s. They publish timely articles on all aspects of personal financial management, ranging from investing in stocks and bonds to the intricacies of investing in covered call options.
Unquestionably, it’s well worth the effort. I strongly suggest that clients stay on top of the stock market and read as much as they can about personal finance issues. The more they read, the better they understand the issues affecting their financial lives. Knowledge prompts smart questions, because once clients understand and appreciate what advisors do, they realize they need the services provided. I can’t resist quoting the late New York City clothing entrepreneur Sy Syms’ advertising slogan: “An educated consumer is our best customer.”
From the client’s perspective, it’s reassuring to know that the advisor community is highly regulated. They are governed by state, federal, and self-regulated organizations, and are required to meet stringent requirements.
It’s also important to know that most advisors invest countless hours staying on top of their field. They routinely network with other financial advisors and attend conferences, seminars, and lectures so that they are up to date on innovations and other changes in their field. Being totally immersed in their field, sometimes up to twelve to fourteen hours a day, often six days a week, gives them the perspective and knowledge to offer their clients state-of-the-art advice.
Revelation: Most People Do Not Find Wealth Management Exciting
When we think about the important role our finances play in our lives, it is fascinating that most people do not find wealth management interesting. We all understand the importance of making smart financial decisions, considering our lifestyles, spending, savings, investments, retirement, vacations, and college education, as well as the peace of mind that comes from astute financial planning; however, given our understanding of its import, it is fascinating from a human behavior perspective how disconnected we become when it comes to taking action.
It’s about bettering and improving our lives and eliminating continual anxiety over money. Smart wealth management, under the tutelage of an experienced financial advisor, is the vehicle leading to a worry-free lifestyle, and over time, increased wealth as a result of constructively tweaking spending habits and making smart investment decisions.
In light of such life-altering investments, the results of good wealth management does indeed fire our adrenaline, be it that dream home, car, or vacation. However, it is not hard to understand why many people think it’s a boring subject, because they’ve taken on the tedious project of managing their finances themselves without the help of financial advisors. Why the mere prospect of reading technical documents, such as 401(k) statements, can drive laypeople to drink. Poring over incomprehensible fine print is an agonizing process requiring the patience of Job.