The Different Types of Advisors

Gurus - Are They Really?

When a financial advisor or an author of financial books becomes well-known, investors may assume they can trust that person’s advice. This isn’t necessarily the case.

Fame and quality don’t always go together. Recently, I was selected by an Internet community site called moneytips.com as one of their top 50 “social influencers.” This is a list of professionals in the areas of wealth and personal finance who use social media and other Internet tools effectively.

Advisors: What Women Need

Anyone familiar with John Gray’s Men Are from Mars, Women Are from Venus knows the premise that men and women communicate very differently. Perhaps this explains why most female investors prefer to work with a female advisor and most married women leave a male advisor after the husband dies. Starting with the first conversation, women want, need and deserve distinct treatment from financial advisors.

Gurus’ Advice: Be Skeptical

Many financial celebrities, like Dave Ramsey, hand out advice for an audience of millions that rarely applies to a real person. Instead of following their one-size-fits-all rules, you should make decisions based on your unique situation.

I’m not saying you should disregard what Dave or any of the other financial gurus out there has to say. What I am saying is that we need to take their advice with a grain of salt.

4 Uses of an Advisor

What is the value of a financial advisor? The personal touch. Here are four stories of how flesh-and-blood advisors you meet in person (that’s opposed to a robo-advisor, where your contact is digital or over a phone line) benefited their clients.

These good advisors helped clients to overcome emotionally based decisions, stop them from making mistakes, figure out whether to make a big purchase and decipher arcane retirement plans. We’ll have separate articles throughout the summer describing in greater detail how they helped their clients.

Advisors: Trust but Verify

You can never be too careful with the major matters of life – especially your financial future. Take a lesson in caution from a former U.S. president and the heavily armed guards at the gates of a military facility. Trust but verify your financial advisor’s bona fides.

I have the honor to provide financial counseling to service members, going to military installations to talk to soldiers and their families regarding financial issues such as buying a home, saving for retirement, reducing debt or creating a budget.

What an Advisor Should Ask

A common question that we get from people after telling them that we own our own financial planning firm is: What do you ask clients at the first meeting?

Robo-Advisors: the Downside

Robo-advisors are getting lots of misplaced accolades lately as the noble purveyors of inexpensive financial advice for the average person. And traditional advisors, the thinking goes, supposedly ignore that average person. Nonsense.

Advising Your Future Self

How do you encourage yourself to do something that you swear today you’re going to do? Easy: Send yourself an email today for delivery to you in the future.

“Send your future self some words of inspiration. Or maybe a swift kick in the pants,” reads the introduction on futureme.org, where you write and store emails to yourself for eventual, scheduled delivery.

You can write to yourself on any subject, of course – personal, professional, familial. How can you use this tool to commit yourself to a financial or savings plan?

How to Manage Your Wealth

Some think of advisors as purely investment focused. But for many people your advisor should be a wealth manager – someone who can give you guidance on both financial planning and investment issues ranging from topics like estate planning to taxes to insurance to investments.

Weighing an Advisor’s Biases

Is your financial advisor biased? To find out, just check two things: Is the advisor human? Is he or she breathing? If so, the advisor is biased. You need to assess an advisor’s biases in evaluating the person’s advice.

Pages

Subscribe to RSS - The Different Types of Advisors