My Dad, 1991 We sat on the other side of the doctor’s desk. My father was wedged between my mother and me, just in case he tried to make a break for it. It turns out, I was the one who wanted to run. The doctor started off in a light, conversational tone but my father, even in his confused state knew an interrogation was coming. He looked to me, a weak nervous smile on his face, and I wanted to stop what was coming next. But we were there for answers – even if I didn’t really want to believe what those answers might be. “How many children do you have?” The doctor asked. My father broke into a wide smile; he knew the answer – lucky seven – like the back of his hand. He even managed to name us all, which in his younger years would sometimes cause him trip over the names, as parents often do. “Can you name their spouses?” And with just the second question, everything began to unravel. My father peered at me nervously, like a kid trying to cheat on a test; my hands Read on...
Why “Boring” Really is Beautiful
I have a bird’s-eye view into the many ways investors have been misdirected by their financial salespeople; but this past week I encountered a perplexing situation – which is rare, as I’ve seen a lot. In the past, the usual "suspect-behavior" has been selling investors expensive mutual funds and annuities when better, lower cost options existed. I’ve seen investors saddled with unnecessary surrender charges and no asset allocation strategy. In short, I’ve seen no rhyme or reason to the recommendations that were made, but for one consistent theme: It was really good for the person selling it; not the poor investor buying it. This week, I can add illiquid, inappropriate investments to my list of worst things I’ve seen. A new client came to me unhappy with his 403(b). After we set about fixing that, he asked me to move over his IRA, as well. That’s when the fun began. The rollover request couldn’t go through, as the investments needed to be sold at the previous firm holding the Read on...
Talkers Aren’t Walkers
When asked by strangers what I do for a living, nothing makes people recoil more than realizing my profession has to do with financial matters. If only they knew that, as a fee-only fiduciary, my role as a financial advisor is markedly different than what they have come to think of from a financial “professional.” I have had the following hurled at me by people who assume that all of us in the industry are alike: “Oh, you’re a salesman!” – Gender aside, no I’m not. Selling is as unnatural to me as writing with my less dominant hand. “You must love money and all the trinkets it can buy.” This is comical since I drive a mini-van that is over a decade old. Yeah, status and stuff don’t ring my bell. “You’re not going to want to talk to me; I don’t have any money.” Again, au contraire; I’m not all business and second, I love being helpful above all else. I derive great satisfaction from educating someone so they can avoid being taken advantage of. I could take offense at Read on...
The Devil Is in the Detail
As our sons started to dip their toes in online consumerism via eBay and Amazon, I realized it was time for an education. Armed with gift cards and trigger-happy index fingers, it was too easy to buy. They lacked the healthy skepticism smart consumers have. They would inadvertently buy an accessory to something, when they thought the main item was included, for example; or they were lured into knock-offs that they believed were real. Investing can be tricky like that, especially if you are not working with a fee-only advisor (fiduciary) who must put your needs first. Often times, investors believe that the sales guy isn’t making commissions off the sale (they are) and that the investments are without a mark-up, just because fees or sales charges weren’t clearly discussed. Investors assume that things are the way they want them to be (no charges) when that could not be further from the truth. My father, rest his soul, taught me this lesson when I came home from the mall with a pair of Read on...