Comments on: To advisor or not to advisor? Thoughts from the advisor’s side. http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/ Everything to do with thickening your wallet by entrepreneur turned President of an Investment Company Wed, 17 Mar 2010 13:21:25 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11520 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 13 Jun 2008 09:08:28 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11520 [...] My Wallet provides food for thought when considering the use of an advisor (or not) - he brings up the observation that the financially successful people he knows tend to have a gang [...] [...] My Wallet provides food for thought when considering the use of an advisor (or not) – he brings up the observation that the financially successful people he knows tend to have a gang [...]

]]> By: Riscario Insider http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11449 Riscario Insider Wed, 11 Jun 2008 03:15:16 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11449 Another interesting post with interesting comments. To get the results that others get, find out what they do and do it to. I've also observed that "every financially successful person I know has a lot of advisors around them (financial, legal, accounting)". I call this the <a href="http://riscario.blogspot.com/2007/10/financial-trail-to-taming-your.html" rel="nofollow">Financial TRAIL</a>. The clients do not blindly follow the advice given but they ask. Stephen Covey said that if two people have the same opinion, get rid of one because they're redundant. You definitely do *not* want advisors who always agree with you. You want diversity, differences of opinion. Unfortunately, advisors with expertise in different areas seldom work together as a cohesive team, which reduces the overall effectiveness. The real challenge is finding the right advisors. I wish more would have blogs and meaningful websites to help potential clients evaluate them discretely and over time. Another interesting post with interesting comments.

To get the results that others get, find out what they do and do it to. I’ve also observed that “every financially successful person I know has a lot of advisors around them (financial, legal, accounting)”. I call this the Financial TRAIL.

The clients do not blindly follow the advice given but they ask. Stephen Covey said that if two people have the same opinion, get rid of one because they’re redundant. You definitely do *not* want advisors who always agree with you. You want diversity, differences of opinion. Unfortunately, advisors with expertise in different areas seldom work together as a cohesive team, which reduces the overall effectiveness.

The real challenge is finding the right advisors. I wish more would have blogs and meaningful websites to help potential clients evaluate them discretely and over time.

]]> By: Mark http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11433 Mark Tue, 10 Jun 2008 16:40:44 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11433 In my 15 years of experience as an advisor, I can tell you that point #3 (stupidity brake) happens more often then you can imagine. This happens most when investors follow the herd... selling low and buying high. I've seen it time and time again. It happened in the tech bubble in 2000 when people said the markets will always go up. We also saw it recently when the markets declined in January and people thought the world was coming to an end. There is no "sure thing" and no one has a crystal ball. Invest in quality, diversify, monitor your portfolio regulary and stay informed. Your recommendation to seek a referral is an excellent way to find a trusted advisor. In my 15 years of experience as an advisor, I can tell you that point #3 (stupidity brake) happens more often then you can imagine. This happens most when investors follow the herd… selling low and buying high. I’ve seen it time and time again. It happened in the tech bubble in 2000 when people said the markets will always go up. We also saw it recently when the markets declined in January and people thought the world was coming to an end. There is no “sure thing” and no one has a crystal ball. Invest in quality, diversify, monitor your portfolio regulary and stay informed. Your recommendation to seek a referral is an excellent way to find a trusted advisor.

]]> By: tom http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11409 tom Tue, 10 Jun 2008 01:30:43 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11409 I'm an FA and Life Insurance Broker and I agree that a proper advisor should be doing more than selling mutual funds. I help clients with budgeting, tax analysis and preparation, life and health insurance, estate planning issues, mortgage planning etc. If your advisor cannot discuss these issues and help you find the appropriate professionals, you are not getting proper value and should be looking elsewhere. Interview a bunch of advisors and ask for references. I provide references and contact information from my clients in my introductory packages. I’m an FA and Life Insurance Broker and I agree that a proper advisor should be doing more than selling mutual funds. I help clients with budgeting, tax analysis and preparation, life and health insurance, estate planning issues, mortgage planning etc. If your advisor cannot discuss these issues and help you find the appropriate professionals, you are not getting proper value and should be looking elsewhere. Interview a bunch of advisors and ask for references. I provide references and contact information from my clients in my introductory packages.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11390 admin Mon, 09 Jun 2008 16:22:32 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11390 CC: My pleasure. I do not argue with your point that there are some really bad advisors out there but there are just as many good ones (the bad ones get the press). My point is even if you don't have an understanding of finance, found someone who has been successful with an advisor (through a large sample size) and ask who they use. In my original draft of this post, I equated finding an IA with dating in High School. The flashy ones get the attention but, at the end of the day, are major let-downs (from what I have been told; I never dated a flashy one in high school). The quiet ones are the keepers but it always takes longer to find them. Preet- thanks. keep up the good work. CC: My pleasure. I do not argue with your point that there are some really bad advisors out there but there are just as many good ones (the bad ones get the press). My point is even if you don’t have an understanding of finance, found someone who has been successful with an advisor (through a large sample size) and ask who they use.

In my original draft of this post, I equated finding an IA with dating in High School. The flashy ones get the attention but, at the end of the day, are major let-downs (from what I have been told; I never dated a flashy one in high school). The quiet ones are the keepers but it always takes longer to find them.

Preet- thanks. keep up the good work.

]]> By: WhereDoesAllMyMoneyGo.com http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11389 WhereDoesAllMyMoneyGo.com Mon, 09 Jun 2008 15:12:36 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11389 TMW - thank you for the note in your post. The personal finance blog community (writers and readers) play a big part in my development and education as an advisor (and as a person). TMW – thank you for the note in your post.
The personal finance blog community (writers and readers) play a big part in my development and education as an advisor (and as a person).

]]> By: Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11387 Canadian Capitalist Mon, 09 Jun 2008 14:33:17 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11387 Oh, and thanks for the link! Oh, and thanks for the link!

]]> By: Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11386 Canadian Capitalist Mon, 09 Jun 2008 14:32:26 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11386 While I'd argue that everyone *can* be a DIY investor, the reality is that not everyone *wants* to. People who don't have the inclination to invest on their own might be better off hiring a *good* advisor. But here's the problem: there are so many incompetent advisors around that to pick the gems out you need at least a basic understanding of finances. If you had a basic grounding, you can easily invest on your own. Still, I see the value that financial advisors (as opposed to investment advisors) can provide in estate planning, taxes, insurance etc. While I’d argue that everyone *can* be a DIY investor, the reality is that not everyone *wants* to. People who don’t have the inclination to invest on their own might be better off hiring a *good* advisor. But here’s the problem: there are so many incompetent advisors around that to pick the gems out you need at least a basic understanding of finances. If you had a basic grounding, you can easily invest on your own.

Still, I see the value that financial advisors (as opposed to investment advisors) can provide in estate planning, taxes, insurance etc.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11385 admin Mon, 09 Jun 2008 14:15:48 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11385 Thanks for the comment. I am still an active investor on the domestic side and a good advisor is helpful. For example, I had my advisor sit on Transcanada Corp. for a while to see what an attractive entry point was. When it did a bought deal at $36.50, I got a call within 10 minutes of the announcement and subscribed to the deal. I suspect I would have never been able to participate without my advisor watching for me. Thanks for the comment. I am still an active investor on the domestic side and a good advisor is helpful.

For example, I had my advisor sit on Transcanada Corp. for a while to see what an attractive entry point was. When it did a bought deal at $36.50, I got a call within 10 minutes of the announcement and subscribed to the deal. I suspect I would have never been able to participate without my advisor watching for me.

]]> By: Chad @ Sentient Money http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/comment-page-1/#comment-11381 Chad @ Sentient Money Mon, 09 Jun 2008 12:08:39 +0000 http://www.thickenmywallet.com/blog/wp/2008/06/09/to-advisor-or-not-to-advisor-thoughts-from-the-advisors-side/#comment-11381 I agree with you if you want something more than the returns you can get on index funds. However, if the only thing you want to do, fell comfortable doing, etc. is put money in index funds, why do you need someone? Now if you want to work for a higher return, get access to IPOs, etc. then a good advisor is probably worth the money. Good rules to use with an advisor. I agree with you if you want something more than the returns you can get on index funds. However, if the only thing you want to do, fell comfortable doing, etc. is put money in index funds, why do you need someone?

Now if you want to work for a higher return, get access to IPOs, etc. then a good advisor is probably worth the money.

Good rules to use with an advisor.

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