Using a Financial Advisor

Although I enjoy doing my own investing, I decided to hire a financial advisor in 2004 to manage part of my savings and investments.

It took me several months to find the right advisor that met my needs. The advisor I chose gave me confidence because of their track record through several market cycles, their investment style and the recommendation of several people who had retired from my company. After attending several of their seminars and having one-to-one meetings, I decided to hire them.

Here’s how I think about my relationship with my advisor:

My advisor’s investment style supports my personal financial goals. His investment strategies and approaches are consistent with my conservative, wealth preservation investment goals. Also, he is or has direct access to resources that are more knowledgeable than me in estate planning, retirement planning, and tax laws.

My advisor makes recommendations but I ultimately have the final decision. I can agree or disagree with his choices, although I usually follow his recommendations. I am ultimately responsible for the outcomes. I briefly look at my investment results on a daily basis to know the status of my investments.

My advisor will handle my finances if I can’t. I have seen cases of elderly people, who no longer managed their finances well, and having a trusted financial advisor would have been helpful. Whether the reason is age, incapacity or death, I trust my advisor to continue to steward my wealth in a way that benefits my family or survivors.

In the two years we have worked together, I have been satisfied with the results. After fees, he has returned slightly above the S&P benchmark. In addition, he has provided a review of our estate planning documents (wills and trusts), recommendations on educational savings accounts, retirement options analysis, and guidance on investments in my 401K. For me, the financial advice has been worth the asset management fee that I pay.

This is not financial advice. Please consult a professional advisor.

Copyright © 2006 Achievement Catalyst, LLC