Right after politicians and lawyers, financial planners have to be the most mistrusted, suspected, and questioned profession these days. And with good reason. With the Bernie Madoff’s of the world running rampant, fewer and fewer people are willing to turn their life savings over to someone else. (Yes, we realize Madoff was an investment advisor, not a financial planner per se, but you get the meaning.) Well, after reading this, you’ll probably be even less likely to hire a financial planner. financial planners won’t tell you as follows:
1. “I got this gig on a whim.”
2. “I’m a jack-of-all-trades and master of none.”
3. “I have ghostwriters draw up your plan.”
4. “I’m a high-pressure shill in disguise.”
5. “Am I ëfee-only’ or ëfee-based’? Um, let’s not split hairs.”
6. “Once I’ve done the plan, I’m outta here . . .”
7. “. . . especially if you’re not so well-to-do.”
8. “Confused? That’s the point.”
9. “In fact, I don’t even understand your plan.”
10. “Good luck busting me for malpractice.”
A list that causes concern for sure.
Ok, Smart Money went a bit over-board with the descriptions, something they’re prone to do to make this series more compelling. Then again, in every over-exaggeration there’s always a nugget of truth, isn’t there?
Our advice? Learn all you can about personal finances so you can manage most of your money yourself. And if you eventually need help, be sure to take the right steps to hire a good financial planner that’s qualified, trustworthy, and fits your personality so you can work with her.
10 Things Financial Planners Won’t Tell You [Smart Money]