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Mistakes When Working With A Financial Professional

*Originally posted on*

Question: I have been working with a financial planner for a few years and I’m not satisfied. It isn’t so much about the investment part. That’s been OK. But I just don’t feel like he knows I am alive. Is it too much to expect to be able to find someone who will take care of me and my money?

Answer: It is not too much to ask that a financial professional be a competent partner in assisting you achieve realistic financial goals.

It is, however, unrealistic to expect a financial professional to “take care of you.” Your use of that language prompts me to offer three ways you may unwittingly sabotage your relationship with any financial professional.

So, here are three big things not to do when working with a financial professional:

1. Believe everything your financial professional says. You should never enter into an important relationship (such as the one you have with a financial professional) without a high level of trust. If you suspect that your financial professional might not have your best interest at heart, don’t stick with her one more minute.

A relationship of trust is not, however, permission for you to check your brain at the door. Your financial professional should be part coach and part teacher. She should not only help you do the right things financially but also be able to communicate the reason why she is advising these things.

Ask good questions. And if the answer comes back wrapped in technical jargon, ask for clarification. Don’t be satisfied with a foggy, vague answer. Work with your financial professional to understand why you are being asked to do certain things. It’s not too much to ask.

2. Believe nothing your financial professional says. Once you’ve been burned (or at least disappointed), it may be a long time before you trust someone again. While that emotion is understandable, it is not profitable. If you need someone who can help you with your financial life, then you need someone you can trust.

No financial professional is perfect, but many are competent and trustworthy. Keep searching until you find one that seems to be a good fit for you.

If you keep your financial professional at arm’s length, never fully trusting him, your relationship will not produce the results you both want and need.

Don’t be satisfied with a trust-less relationship.

3. Forget the difference between delegation and abdication to your financial professional. I have long said that my own, totally unscientific estimate of the population that has the time, talent and temperament to do their own financial planning falls somewhere between 5% and 10%. Everyone else (in my humble opinion) could benefit from outside, professional advice.

What you are getting from any professional relationship, however, is assistance, not replacement. I have a colleague in another state who tells prospective new clients, “I don’t want to care more about your financial situation than you do.”

When you hire a financial professional, you are really delegating certain functions of your financial life to that person – you have made the decision that it is worth the money to buy a portion of their time, talent and temperament to assist you in achieving your financial goals.

But never forget – it’s your money and your life. Ultimately, you will reap the benefits or suffer the consequences of what happens.

You know you have crossed the line between delegation and abdication when you choose to never think about what’s going on with your money and choose not to meet with your financial professional to find out. Stay in touch and stay informed.

I am sorry you’ve had a bad experience, but don’t give up.

Like it or not, your financial future is advancing towards you one day at a time. If you are one of the many who could benefit by getting professional help in preparing for that future, don’t give up.

The search for the right financial professional is worth it.

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