Assembling a Winning Financial Team?

Answer 1

Often the type of financial advice you receive may depend on the type of financial professional you ask. I used to know a financial advisor who came from an insurance background. To her the answer to all the clients’ financial problems came down to the clients’ need to buy more insurance. Many who appear to be in the business of giving financial advice are really in the business of selling financial products and can easily suffer from the hammer-nail syndrome. When the only tool you have is a hammer everything begins to look like a nail.

It’s easy to fall into a financial strategy that doesn’t quite fit your needs by asking a one-dimensional advisor for advice. This is not to say that advisors who skew towards one type of solution over another are not well meaning or that their strategies are always wrong. It’s just that there is no such thing as a one-size-fits-all financial strategy.

To avoid being led down a path that may not be in your best interests it’s best to seek out a financial planner who takes a more comprehensive view of your financial situation and looks to implement a holistic strategy that encompasses all dimensions of financial planning.

But when you need a specialist, there’s nothing wrong with seeking them out. My favorite way of approaching this conundrum is to find a trustworthy fee-only financial planner to analyze your overall financial situation and offer guidance free from the conflict of sales commissions or fees for assets under management.

Then turn to the specialists to implement the plan the fee-only planner develops. Go to an insurance broker for risk management needs, a stockbroker for investment needs, an accountant for tax-specific strategies, and an attorney for estate planning. You can let your fee-only financial planner act as your quarterback in this game, calling the plays and coordinating your entire financial team.