Choosing Financial Advisory Services Wisely

A recent article in the Oregonian talked about choosing financial advisory services. You can read it at the end of today’s blog…. The title is “Choose Your Financial Advisor as You Would a Doctor”. Good advice, really. But it misses one very important point.

The article is basically a list of ten things to consider as you choose a financial advisory professional. Each one is a great idea. But the very first tip caught my eye: “Know the Credentials”. It discusses how acronyms are often cryptic and sometimes used to trick people. I especially liked the one that was unearthed by the North American Securities Administration Association…C.H.S.G. Do you know what a C.H.S.G. is? Yeah, neither did I until I read the article.

Certified High School Graduate!

But CHSG is more impressive, isn’t it?

According to the book, The Millionaire Next Door, the truly wealthy seek out the absolute best advice, guidance and counsel that they can buy. Yes, I said b-u-y. Why? Because good advice is worth paying for. I recently wrote a blog about a Tax Court case wherein the Plaintiff’s—who lost their case—made a very good case, but ultimately made even bigger mistakes along the way. A few hundred dollars and an hour or two with an accountant and/or lawyer, they would have earned an additional $7,935-ish. That’s a pretty good rate of return, don’t you think? And so do America’s truly wealthy, because they don’t skimp on excellent professional advisory services. According to the book’s authors, Stanley and Danko, truly wealthy individuals also don’t get advice from just any professional, either. They would sniff out and shy away from a CHSG, that’s for sure! But they also are more likely to seek out the advice of a J.D. or a C.P.A. before seeking out input and advice from a C.F.P. Quite often an experienced, knowledgeable CPA firm can save a person more money than an investment advisor can help someone to earn!

The truly wealthy are more interested in saving more of their money than in the latest investment concoctions. The truly wealthy are more interested in arranging their finances and their legal affairs to properly protect themselves against risk, loss and liability than they are in the ‘new new thing.’ Not to say that a CFP’s advice isn’t worth obtaining, but your attorney and CPA firm are more fundamental to your financial game plan. Not only that, but often your CPA firm is often the best source for a financial advisory services or that good tip on who might be a great resource for that kind of advice….