By George Chamberlin
Note from Scott: I’m honored to feature George Chamberlin’s writings on my blog. He has worked in the legal and financial industry for over thirty years, including working at Wealthcare Capital Management from 2002-2009. George practiced law for several years before focusing on writing, planning and software development in the estate planning and financial planning areas. Since 2009, George has worked as a consultant to financial advisors, including Wealthcare advisors, on a variety of matters including advanced financial and estate planning. As they become available, I’ll continue to share George’s thoughts and insights here.
You’ve probably heard the old story about a client who was afraid to call his attorney to ask any questions because the client could hear that meter ticking in the background. Add to that fear our propensity to put off tasks we do not find appealing and we could easily squander opportunities to receive useful advice and perhaps lose by that choice or inaction.
When it comes to your financial advisor, there is not any meter ticking away and you know your advisor does not hesitate to contact you about your financial situation when necessary. There are reports on the status of your financial plan, reports on the performance of your accounts, newsletters and articles of interest, required reminders such as the annual privacy notice, disclosures and more. Just as your advisor stays in touch with you, it is likely you will give your advisor a call when you are worried about what’s going on in the market or are interested in buying or selling a particular investment.
As a client, though, how good are you at keeping your advisor up to date on changes in your life? That is, when you are not actively seeking advice or comfort from your advisor, are you good at providing information about changes in your job, your family, your goals?
When your advisor presented a financial plan based on your priorities, your goals and your life, an important part of the discussion was the need for ongoing monitoring of that plan to keep up with the inevitable changes that life – and the markets – bring. You may derive the most benefit from your advisor through buying in to the process and choosing to act upon it by keeping your advisor informed.
Recently an advisor talked to me about a married client who enjoyed a very substantial joint income with his wife, both employed in technology. The couple had a tendency to effectively spend their income and borrow to the point that their income was stretched pretty far. In the past they had encountered significant financial problems and had met with some success after seeking their advisor’s help in turning things around.
The advisor explained that he had received a call from the client, vacationing in Florida, excited about the idea of purchasing a timeshare and telling the advisor he wanted to go ahead with the transaction. The advisor reminded the client that the couple had previously experienced difficulties selling a timeshare interest and suggested that the client only enter the transaction with the understanding that it was not an investment, noting that with current income the couple could probably manage the purchase if they really wanted it. Later that evening the client called again to tell the advisor that the couple had decided not to go ahead with the purchase, understanding that they did not need to take on the additional financial obligation.
The point is, of course, that this client understood the value of calling the advisor before finalizing the transaction – initiating a discussion in keeping with the ongoing advice process. The advisor did not say no but did help the client put the proposal in context and then make his own informed decision. Understanding that your advisor is there to serve you and advise you in keeping with your best interests is invaluable and a reminder why you should keep your advisor up to date on changes that may affect those interests.
© George Chamberlin
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