Comments on: 5 signs you are a pushover with your financial advisor

By: Weekly review February 14th- 20th | Financial Highway

Weekly review February 14th- 20th | Financial Highway — Fri, 20 Feb 2009 20:43:41 +0000

[...] Thicken My Wallet gives tips on what to look for in an Investment Advisor [...]

By: A Week in Review: Edition #1 | My Findependence Day

A Week in Review: Edition #1 | My Findependence Day — Fri, 20 Feb 2009 18:23:00 +0000

[...] – Thicken My Wallet gives you 5 tips on how to recognize if your Investment Advisor is pushing you [...]

By: Rob J P

Rob J P — Fri, 20 Feb 2009 18:10:50 +0000

Thicken My Wallet,

A most informative blog. I always learn something from your comments. Keep them up, please.

I do have one quibble here. It’s a bit of a pet peeve of mine. Twice in today’s blog you said “use” where you should have said “used”. I will reproduce them with the offending word asterisked:

“Most readers know that I *use* to be a lawyer (cue the jokes now…).”

and

“I *use* to chuckle when clients referred to me as “Mr.” especially when I knew they were much more successful in life than me.”

Although I see this error more often than I like, it particularly grieves me when it’s someone whose English (a former lawyer) should be better than mine. I admit whenever I see this misuse, the person drops a bit in my estimation. OK, mini rant over. I hope I’m not coming across as overly nit-picky. As I say, I enjoy reading your blog and, in spite of my issue with this particular one, I found it most informative.

Cheers,
Rob

By: tom

tom — Fri, 20 Feb 2009 15:22:42 +0000

Wow those are great and very true reasons people are pushovers, I would say this is the biggest for people in general.
1.You never question their rationale for their advice.
let me explain, people go around listening to others and doing it without asking, they pretty much follow the herd of sheep and usually never think or do otherwise.

By: Weakonomi¢s - Weakonomics Clogged Tubes Finds #2

Weakonomi¢s - Weakonomics Clogged Tubes Finds #2 — Fri, 20 Feb 2009 15:05:58 +0000

[...] Thicken My Wallet made a creative list of signs you’re a pushover with your financial advisor. I find this to be very important because many advisors get away with bullying you into products you either don’t understand or don’t want to be in. That isn’t the way your investments should work. [...]

By: the weakonomist

the weakonomist — Fri, 20 Feb 2009 02:38:45 +0000

Not all CFPs are created equal. We employ many of them at my bank and they work on commission. There is an organization called NAPFA (national association of personal finance advisors) that requires all members to work on a fee basis. Whether it is % of assets or by the hour, they don’t have a vested interest in selling something you don’t need for their bottom line.

By: Ray

Ray — Thu, 19 Feb 2009 17:09:59 +0000

There are IA’s than there are Sales people, as you pointed it is fairly easy to enter the market, but much harder to stay in it for the long term and be successful. the ones that are successful are client service focused, call clients at least every 6months right now I would say call every 2 months. If you do not hear from your IA on regular bases that is a sign to leave him/her. I think it is every IA’s obligation to discuss MER’s and mutual fund sales fees with client BEFORE buying anything and that goes with ANY investment.

By: Canadian Capitalist

Canadian Capitalist — Thu, 19 Feb 2009 16:59:25 +0000

I think everyone should take control of their investments, whether they are DIY or not. The vast majority of advisors are simply mutual fund salespeople. Also, investors with advisors should demand a financial plan document and an Investment Policy Statement. It is astonishing how many don’t have one.

There are two sides to Finance Matters comment. When I spoke to advisors last summer, IIRC, only one (out of 10) volunteered that she also does fee-only planning. I had to specifically ask the others if they offered fee-only as a choice.

By: admin

admin — Thu, 19 Feb 2009 16:34:07 +0000

Finance Matters- any reason why no one takes the fee based planning?

By: Finance Matters

Finance Matters — Thu, 19 Feb 2009 15:23:12 +0000

If you are going to use an advisor, find a CFP (Certified Financial Planner). They will know a hell of a lot more about all aspects of your finances, be able to counsel you regarding taxes, insurance, estate issues, budgeting, mortgages, banking etc. (as opposed to the “salespeople” you refer to, particularly in the banks). Ask for references, ask for an investment statement. Any good advisor will state up front how they get compensated. I sit down with every new client and explain MERs, trailers, DSCs and FE loads, mutual funds and indexing. I also offer them the choice of fee based financial planning. So far, not one client has taken me up on the offer.