Do you currently invest your money with a close friend or a neighbor? Has this person butchered your portfolio through the ups and downs of the market, but you’re afraid to say anything because of the close relationship you have? Is this personal connection blinding you to reality and interfering with the achievement of your financial security?
The majority of advisers are highly skilled sales people who focus on managing relationships not investments. Oddly, instead of there being a strong focus on investment management most advisers seem preoccupied with relationship management as a core business strategy.
The investment industry is geared toward rewarding sales people to sell; not to reward know-how and integrity. Sadly, I have realized the industry places more emphasis on hand-holding and relationship building than on competency and skill. Hand-holding and frequent phone calls will not get back all your money that has been lost. Your adviser may be a nice person but may also be extremely incompetent.
It takes more than a thoughtful sales person to get the job done. Are you looking to have a personal friendship with your adviser or a business relationship with a professional that manages your money? Do you want someone who is touchy-feely but couldn’t find their own backside with both hands; or do want a serious practitioner? Are you more concerned about your adviser’s future or yours and your family’s future?