Tuesday, April 17, 2012

How to Get Rich - Wear Your Own Slippers

Have you ever heard the saying that you don't know someone until you walk a mile in their shoes ?

Take it a step further and you can really get to know someone if you wear their slippers !

The second statement is something I learned when training to be a financial adviser. Basically, it means that you really have to get to know a client before you can help them the most.

The Problem


On the surface it sounds like a good thing to get to know your client very well before offering financial advise. For the well disciplined and ethical adviser it is a good starting point. How can you possibly help someone until you get to know them and wear their slippers so to speak.

The problem with the above approach from the clients' perspective is that the client can become very vulnerable. The client can very easily give up far too much control of their financial future. Far too many times the financial adviser has too much control of their clients' future.

Some clients in the past have even become victims of fraud because they put too much trust in their adviser.

The Solution


The one thing to remember when it comes to your money and your future is to retain control. Never get to the point with your adviser that you don't know exactly what they are recommending and why. Always fully understand what you are investing in and know the risks. All investments have some form of risk.

I am not saying that you should not work with an adviser. On the contrary, I am saying that in most cases working with an adviser can be very beneficial for the both of you. You just need to remember to retain control of your future.

Not Too Cozy


You must remember that all advisers report to a boss who wants them to do well for the firm. Whether they work for a bank, a trust company, an insurance firm or other financial firm, they all report to someone. Their first obligation will have to be to their employer or else they may lose their job.

Don't get too cozy and fall for the ads you see. All they really want is your money, because the financial  services business is all about the numbers.

Stay in control of your own future and learn what you need to make the proper decisions with or without the aid of an adviser.

As always, I welcome your comments and suggestions for future topics.


No comments: