When was the last time you heard from your insurance agent? When did the agent last call you, unprompted and not in “selling mode,” to give you some useful advice to save money or for better coverage? Did your estate attorney finally complete the changes in your will that you requested? Does your CPA keep you up to date on how much you owe in taxes, or does he drop surprises on you right before April 15? Still waiting for that call back from your broker?
If any of these stories sound familiar, then one or more of your advisors has probably cost you money or opportunity at some point. And if that’s the case, you might find yourself having to work longer and harder to make up for their missteps and to accumulate the wealth you need to retire the way you want, in the time frame you would like. Otherwise, you will have less wealth to enjoy when you decide to stop working—the result of retaining poor advisors.
Every individual and business has (or should have) a team of advisors from which they expect to receive the best advice when making financial decisions. At the very least, the team should include an attorney, a CPA, an insurance agent, an investment advisor, and a banker. Of course, there could be others. Businesses can utilize a pension expert or a consultant to advise on improving operations, and individuals can leverage the expertise of a financial planner or wealth advisor.
How does your team stack up? Take this simple but revealing test:
On a piece of paper, list your team of advisors by name and profession. Next to their name, give them a rating of “A,” “B,” or “C.” “A” is for the superstar: they always finish their work on time, they answer phone calls promptly, they show you ways to save money with them, and they simply give all-around sound advice. They care. These are the keepers on your team.
“B” is for the person who is just OK; not great, but adequate. They are spotty on returning phone calls, maybe missing deadlines once in a while. You would replace them if someone better came along.
“C” is for the advisor who never returns calls in a timely manner, never gets back to you with an answer to a question, and is always late with work. These advisors cost you money. Sometimes they cost you a lot of money. They are a ball and chain around your effort to get ahead financially. These advisors need to be dismissed immediately.
Taking this test once a year is an easy way to possibly find more wealth or opportunities. It is hard enough to find the cash flow to live the life you want now and save for retirement. If you are financially independent, you don’t need to waste your wealth with poor advisors.
If one of your advisors is a good friend or family member, you can keep doing business with them, but if they are a better friend than they are an advisor, you might still be working to make up for their bad advice while they enjoy retirement.
