The number of boomers who have assets spread all around is “amazing,” says Robert Graham, CEO and president of RG Capital LLC, Scottsdale, Ariz.“They have an average of 3 financial advisors each.” By retirement, “some older people even forget what they have,” he continues.
This always struck me as odd…because the reasoning most people give is that they “don’t want all their eggs in one basket”. I think people think that if they repeat this enough times it’ll be true. It’s not. It’s not. It’s not. It’s not. It’s…
…financial advisers are not financial products, asset classes or investments. When you diversify your advisers, you are diluting the advise you get from all of them because – usually – no one adviser is given “keys to the kingdom.” Some people think this is a good thing. This reminds me of the old “everything in moderation” idea. What happens if one of your advisers is really good? Do you want only a “moderate” amount of good financial advice? Of course not, that’s ridiculous.
Which one of your financial advisers offers the best value? That’s all you need to be concerned about. Pick that one adviser and ditch the extras. Trust me, you’ll be better off in the long-run.
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This entry was posted on January 7th, 2012 by David C Lewis, RFC. Edits may have been made to keep this entry current. · No Comments · Asset Preservation, Budgeting & Money Management, College & Career Planning, Insurance & Savings, Investing, Retirement Planning, Wealth Creation