S/he’s Not That Into You – 10 Signs You May Need a New Financial Planner
There are some great financial planners out there, and then, well, there are some who are not. I’ve been spending a lot of time lately on the phone with financial planner types while I have been sorting out the details of my father’s estate and also his retirement funds, and rather than come up with a definitive list of what to look for (or not) in a financial planner, today I’m taking a humorous approach. But, based a tiny bit in fact as I’ll mention at the end. Enjoy!
1. When they’re talking to you, they’re constantly being interrupted by calls they *have* to take.
2. They play games on Facebook on their iPhone the entire time you are meeting with them.
3. Their door is shrouded in black for the “death of the economy”.
4. Their company was part of the big financial bailout and yet they’re scheduling a vacation with the big bonus they just got. During your meeting.
5. When you talk, they yawn.
6. Then pass you a prewritten financial plan that reflects nothing that you just said.
7. When you ask questions, they say “Everyone is losing money, just roll with it.”
8. They look at their watch and tell you that you are making them late for their racquetball match so could we wrap it up now?
9. None of the above applies to you because you haven’t been able to get your advisor on the phone to schedule a meeting in months.
10. Or years.
Obviously, many of these things probably haven’t happened to you or happen very often. But my one takeaway message from my financial planner experience so far is find one who is actually listening to you and values your time. If it sounds like they’re giving you a predetermined script no matter what you say, they probably are. If it sounds like they have their best interests in mind, not yours, they probably do. If you choose to work with a financial planner, make sure you are being heard and feel like an important part of the process. Or you might not be part of the process at all.
February 25th, 2009 at 4:38 pm
You joke, but I actually had #6 happen to me – the financial planner failed to actually review the assets that I provided her – including my term life insurance policy – and recommended that I needed to buy $250K in whole life (I was 25 at the time and could not afford the $3,000 up front and $600/month needed).
Also, regarding your car’s check engine light – the engine light is required by the emissions department of the federal government to control emissions – it does not mean that your car is in imminent peril of breakdown. In fact, it actually has no way of knowing the condition of the engine itself. It will only affect your ability to get a state inspection tag, if one is required in your state. I would recommend doing nothing. My boyfriend’s car’s check engine light goes off constantly. He only ever repairs it right before an inspection. And sure enough, as soon as the car passes inspection, it inevitably comes on again. (5 times now). I am happy to tell you more about this and how I know this information (I learned it during a legal issue I researched from being an attorney). Please feel free to email me. It is definitely not worth the $400 repair.
February 25th, 2009 at 4:52 pm
I wanted to jump in and say a couple of things in response to Taylor’s response.
First of all – Thank you for this blog, it has inspired my wife and I to pay off all of our non-mortgage debt. It will be a slow process, but your blog keeps me going.
On a note about your car issues. Taylor is only partly correct. The oxygen sensor being bad does not mean that the car is in any near future danger, but if you drive around with it being bad for very long it will end up doing more damage than it is worth. If it is broken, the computer does not know how to properly mix the gas/air and it will foul the plugs and hurt the engine in the long haul. This is a relatively easy item to replace yourself. It entails a pair of plyers and locating the sensor, unscrewing the old one, unhooking the wire clip and installing the new one.
Thanks Again for the Inspiration.
February 25th, 2009 at 5:54 pm
Stuff like this is why I believe strongly that everyone should learn to manage their own money. You should not put your entire livelihood in the hands of someone who’s best interest is not always directly aligned with yours. The only people that need financial advisers are those with a ton of money, so much they don’t have time to manage it all themselves.
February 25th, 2009 at 6:49 pm
Financial planners are generally on commission and care more about their own paycheck than yours. It is a sad state of affairs, but true.
February 25th, 2009 at 10:35 pm
I really think many if not most financial planners do NOT have your best interests at heart. It’s actually counterintuitive, since they make much of their money off of products they sell you. I’d seriously only talk to someone who charges a flat fee and has no affiliations with brokerages, insurance companies, etc. Suzy O. is good enough for me.
February 26th, 2009 at 1:47 pm
Thanks, for the article. I’m currently experiencing #9 with our financial planner. She’s does a wonderful job with my mother’s finances, and agreed to take us on. But according to mom, the FP recently got a promotion at work and is not handling new individual accounts. Unfortunately the FP hasn’t picked up the phone or returned my emails to tell us this.
Regarding your car. Ashton is correct. Over the long haul the gas/air mix will have an impact on your car’s performance and fuel efficiency. I drove my Geo Metro for years without addressing the issue, and had to fudge inspections as Taylor mentions. I figured as long as I was passing the emissions part of the inspection, I was okay with fudging the whole light thing. Eventually, (like 6 years later) I was no longer passing the emissions. (usually, briefly disconnecting a battery cable will allow the light to cycle off. But it will come back on if the inspection isn’t completed quickly.)
February 26th, 2009 at 6:17 pm
Funny and insightful. I have been to several financial planners who were not listening to me – not a fun experience.
Thanks for the post
February 27th, 2009 at 12:04 pm
Financial planners can be a great help to almost anyone… Those with “tons” of money and those with a decent cash flow. If you choose a FP that is actually a CFP (certified financial planner) vs one that’s not just an insurance agent turned planner it can make a big difference. Also I believe when you pick a fee based planner (they charge a %of your assests undermanagement) vs. a Comission based planner then you both have the same goal…to make your money grow. Am I a planner? no. But know a very good one.
February 27th, 2009 at 12:38 pm
We’re very frustrated with our planner as well… I know we’re young and it’s hard to tell what the future will hold for markets, but being told to Google a financial calculator for retirement doesn’t hold water with me. What, you can’t walk through a calculator with us and double-check our assumptions?
I consider myself an intelligent person, and there are times that I feel I know more than our planner. Can that be sign #11? She went on a long story about emergency funds, but when I told her we already had 6 months she didn’t know what else to tell us. (We had scheduled a meeting to talk about retirement, not savings.) She’s a family friend, and I would feel bad pulling our account, but there are times that I get so frustrated.
As I’m typing this, I’m feeling increasingly silly. It really is time to move on, isn’t it?
February 27th, 2009 at 7:29 pm
Ha! #7 is the most annoying — as if that is a reason for us to check our concern to the side.
Currently, I don’t have a financial planner, but if I were to get one, he or she had better not have been a beneficiary of the fed bail out!
February 28th, 2009 at 7:14 pm
LOL Number 3 was hilarious. I’ve never had a financial planner because my frugal finances are handled by one I trust (me). It doesn’t take much to manage so little!
I think it’s remarkable your car has lasted so long. My Betsy (Jeep Cherokee 1998) is at 177K and everytime she starts I exclaim THANK YOU BETSY YOU ARE A GOOD GIRL!
I love your blog
Found you through Frugal Dad.