Do you have a Financial Advisor?

wildviper

I am not soliciting business for myself here. I won't even take you on as a client even if you PM me. The purpose for this post is to raise awareness.

I always wondered this (since I am a Financial Advisor by day). After reading Angelo's post about Annie Leibovitz's impending bankcruptcy, I think this issue becomes more important. link: Angelo's post

While I am obviously biased, I think it is VERY important to have a good Financial Advisor.

So do you have one? If so, Excellent! Get a second opinion every now and then. If not, why not?

Which category do you fall under then:

• You think you do not have enough money to worry about this
• You can handle this on your own and know what to do
• You don't feel like buying the next "hot" stock since you got burned in 2000 and/or in this economic crisis.
• Advisors push insurance to make lots of money..they don't care about you
• You don't have time!
• You are well off and don't really need any advice with managing your money
• You have it on your to-do list and will get to it in a couple of months

I have heard many of the excuses. The one that I would like to dispel is about not having "enough" money.

There is no magic number you have to hit before a financial advisor makes sense. I have helped and continue to do so many young couples who have just gotten married and starting their lives. The areas that a financial advisor can help are very diverse; from starting to save for a home, or a car or a vacation; paying off the student loans; paying of that ring; saving for the rainy day and so on. Sure I may not make a good living serving these people, but it provides me satisfaction knowing I am making a difference in someone's life.

You won't know the areas you need help in, unless you go through the financial planning process. Sure, you are going to have crooked advisors interested in just recommending big commission things. That is why I recommend you interview few advisors...get a feeling from them. Check them out with Finra(in US), your state insurance agency. Most important is going to be your gut feeling when it comes to this.

The advisor will help you plan for a rainy day, stash away for your retirement, plan for your exit strategy from this field one day, or help you get in to this field and so on. If you are over-spending, apparently like Annie, the advisor should let you know that won't be sustainable for long.

Problem with people like Annie and the Celebs are their egos, pure and simple. They think they can handle it all and generate more cash. They think they will always be in demand. They have no idea about how much is coming in and how much is going out. In my practice, I would (and have) fired clients that I feel are driving themselves to disaster and not heeding my advice.

So, when are you scheduling that appointment with that advisor that is calling you and 'bugging' you?