There are lots of great articles recently about the confidence (or lack thereof) that people have in their financial advisor. Turns out many have been great “salespeople”, but lack the ability to give wise and prudent investment and financial guidance. But the growing question is not whether to seek out a new advisor for your financial well-being (many agree that they should – and need too), but ‘how to break up’ with a ‘friend’.
In Search of Competent (and Honest) Advisors
“It may be someone you like and trust, but is it someone competent to manage your money?”
YOUR RESPONSIBILITY But the burden of finding a competent adviser rests solidly on you. Even if you decide that the broker trying to sell you the latest offering does not have your best interests at heart, how do you pick someone better?
“Does the person you’re talking to understand?” said C. Steven Crosby, head of PwC’s wealth management practice. “It’s not going down a checklist and saying how many wives, how many kids, how many homes? It’s what wealth means to you.”
http://www.nytimes.com/2009/08/01/your-money/financial-planners/01wealth.html?emc=eta1
Thinking of Switching Financial Planners?
It can be a difficult, even emotional decision.
But when his IRA started to "dive bomb" a couple of years ago and his adviser wanted to stay the course, Keating and his wife started soliciting a little advice on the side. "My adviser was a friend, a good guy, and those are awfully hard phone calls to make,"
"But we just had to stop the bleeding. It's almost like you're breaking up: 'You take the dog, I'll take the silverware.' "
"If you fire Fred and hire George, who's to say that George isn't even worse than Fred?" "They might just be trying to win your business, so there's a natural bias there. And if you ask for a sample portfolio, they're never going to show you a bad one. So you'll never really know what they've produced for an average client."
http://www.businessweek.com/magazine/content/09_27/b4138058215500.htm
Saverio Manzo
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