These
days, too many successful, wealthy individuals
and families are simply not getting the advice that’s most appropriate to help
them achieve their key financial goals.
There are a number of reasons for
this. But one main culprit is that, overall, there are a relatively small
number of financial advisors we would describe as extremely talented and deeply
caring professionals.
So it’s a good time to ask
yourself: How good is the financial advice I’m getting these days?
Four types of advisors
To make smart decisions about your wealth, you want
to be sure you’re working with true experts. That means professionals who are
both committed to your well-being and best interests, and extremely technically
capable in investments and advanced planning. These are advisors we call consummate professionals.
Unfortunately, there are three other types of
advisors operating today—and we strongly suggest you steer clear of them!
Pretenders want to do a very
good job. They have great intentions. The problem: They lack the knowledge and
capabilities to do so. Pretenders simply aren’t familiar with many of the more
advanced and sophisticated wealth-building and wealth-protecting solutions you
may need to pursue your goals. Advisors who are Pretenders are not bad people.
To the contrary, they tend to be intelligent, hardworking and well-meaning.
They want to do what is best for their clients, but from an objective vantage
point, they are just not capable. Their earnest hard work does not
change the fact that a great many of them probably are not able to provide you
with the high-level, sophisticated tools, strategies and products that are
almost always necessary to become meaningfully wealthier, and they probably aren’t
adept at the strategies that are so critical to protecting your wealth.
Exploiters are often technically adept—highly skilled in
advanced financial strategies. The problem: The financial and legal strategies
they often turn to are technically legal—but highly questionable. Thus, there
is often a good possibility that the strategies they advocate will blow up on
you—often years after you’ve taken their advice. Put simply, Exploiters are not
looking out for your best interests.
Predators are criminals. Their objective is to separate you
from your wealth using cunning, guile and duplicity. Predators may or may not
be technically sophisticated. However, they’re superbly
capable of being manipulative and building rapport and trust.
FINDING CONSUMMATE PROFESSIONALS
The key differences among the four types of professionals are summarized in this chart.
Key Differences
Clearly, you want a consummate professional on your side—and there are a few steps to help you gain greater confidence that you are working with one.
The way that most of the affluent and the accomplished find exceptional financial advisors is via introductions from professionals they work with. Example: If you need an exceptional money manager, your accountant may know trusted experts he or she can introduce you to. Or if you have an estate tax issue for which life insurance is the best solution, your trusts and estates lawyer likely knows leading life insurance agents.
Going to professionals who have proven themselves to you can be a very powerful way to find other consummate professionals. When accountants or lawyers refer you to a financial advisor, they are putting their reputation and professional judgment on the line. This is not something they are likely to do unless they feel the financial advisor is a consummate professional.
Another consideration is whether the financial advisor is a thought leader. That is, he or she is recognized as a leading authority by other professionals, the wealthy and successful, and even competitors. By identifying true thought leaders, you increase the likelihood of working with some of the most erudite professionals in their fields.
Next steps
Are you working with a consummate professional today? We hope so. If your advisor focuses on aligning your wealth with your key financial values and goals—and does so with the help of advanced solutions and a team of experts—it’s likely that you are!
One of the best ways to deal with a situation where you’re just “not completely sure” or you “feel a little uncertain” is to conduct a stress test. This is a process of critically evaluating key aspects of your current financial situation and how they are being managed. Or it may involve carefully assessing a particular strategy or product you are considering and “putting it through its paces” before deciding whether to move ahead.
Stress testing gives you the opportunity to correct mistakes or use solutions and products that can do a lot more to help you accomplish your goals. Simply put, stress testing often makes a lot of sense if you want to avoid financial advisors who are Pretenders, Predators or Exploiters.
ACKNOWLEDGMENT: This material is intended for educational purposes and does not constitute a solicitation to purchase a security or advisory services. Timothy McNeely has retained CEG Worldwide to conduct research and prepare informational materials for his use. This material has been researched and prepared by BSW Inner Circle and its affiliates, CEG Worldwide, LLC and AES Nation, LLC. Copyright 2020 by AES Nation, LLC. Mr. McNeely is a member of CEG Roundtable and pays an annual fee for these services. Mr. McNeely is involved in these activities through The LifeStone Companies. Timothy McNeely is an Investment Advisor Representative of Dynamic Wealth Advisor dba Lifestone Family Office. All investment advisory services are offered through Dynamic Wealth Advisor. The LifeStone Companies are not owned or legally affiliated with Dynamic Wealth Advisors and the activities conducted by Mr. McNeely under The LifeStone Companies are considered a separate outside business activity.