Today’s Puzzle:

You probably have several reasons for choosing one advisor over another, but are they the right reasons? Discover why you should hire a particular advisor.

(Click the featured times below to jump forward in the episode)

Puzzle Of The Month:

  • [4:45] – Dan receives a frustrating email from a prospective client. 

Jigsaw Pieces:

[5:30] – Blanket Questions. 

  • A prospective client emailed Dan with a list of questions they had clearly found on the internet to ask a potential advisor. While you should certainly do your research, boiler plate questions might not be that useful in helping you find an advisor.

[5:30] –  The Trouble With Fees.

  • It’s always wise to determine how your potential advisor will be paid. In fact, we encourage folks to ask us that question. However, if you ask it before ever speaking with your advisor, you’re more than likely going to get a vague response. How could an advisor tell you their fees without knowing what services they’d be providing? It’d be like asking your doctor for a prescription without telling them your symptoms.

[6:06] – Misleading Questions. 

  • If you ask us how we performed in 2017 and 2018, we’re probably not going to work with you. This question comes from irrational thought. It’s implying that you think our performance during those two years is somehow indicative of what your portfolio will do going forward. In reality, short-term results are irrelevant, and you could be in a terrible portfolio and still perform well occasionally.

[8:44] – As My Advisor, Will You Invest Me In Plans, Portfolios, Or Other Options? 

  • We’re not even sure what this means. However, it’s important your advisor builds you a plan that’s customized to your needs.

[9:01] – Great Expectations. 

  • Getting large returns might be one of many reasons to work with an advisor. However, it’s unrealistic to expect double-digit returns every year. In fact, it’s illogical to expect even an eight percent return on your investments every year.

[10:45] – Your Needs Differ From Others.  

  • If you’re asking your advisor what his portfolios’ returns averaged over the last five years, you’re asking the wrong question. This is one of many bad reasons to choose an advisor. After all, each portfolio is uniquely put together. How could they possibly all be expected to perform similarly?

[11:33] – Our Advice Isn’t Free. 

  • You’d never expect a doctor to offer blanket advice over the phone. Why should your advisor function differently? You can’t ask vague questions and expect free, sound advice from a brief phone or email conversation.

[12:21] – Trust The Process. 

  • Jumping ship in the short-term makes no sense. Your plan is built for the long-term. There’s no reason to start from scratch every time your investments have one down year. Investing is about time in the market, not timing the market.

[14:30] – Can You Work With This Person? 

  • This should be your main question. Ask yourself whether they’re competent and whether you can trust them. If you’re focusing on your returns, you’re basing your search for an advisor on the wrong reasons.

[15:27] – Better Questions To Ask.    

  • Rather than looking for a sequence of returns, look for a coach.

Puzzle Solver Assignment:

  • [18:15] – Homework time! We want to equip you to succeed. If you work with an advisor, write down your five biggest expectations of your advisor. After that, send them to your advisor, and have a conversation over whether your advisor is meeting them and whether your expectations are reasonable.

The Full Picture:

Free Stuff:

Click the image to get a free retirement rescue toolkit.

Additional Resources:

The host: Dan Cuprill – Schedule A Time To Meet – Or Call: (513) 563 – 7526

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