How wealthy do you want your Wealth Manager / financial advisor to be?

This is a funny one. One would think it logical to say you want the richest guy because he would be the most successful hence most effective. In a perfect world that would be the case. However, we know that the world is far from perfect. You could then say a guy who’s not the richest because he might be more honest and or hungry etc. but the logic there is a slippery, slippery slope.

My opinion is that the wealth of the advisor really shouldn’t matter. What matters, instead, is their reputation with their clients, and your feeling from the initial consultation.

I’m not a professional, in fact faaar from it, but I think I know enough to say that if they recommend a bunch of high fee funds, or, if they are affiliated with a specific investment firm, and only recommend funds from that firm, that’s a red flag.

If they are constantly moving your money around and “collecting crumbs” on the transactions, that’s a red flag.

Great financial advisors are worth every penny, but they are not the problem – it’s the unscrupulous ones that you need to watch out for, because both can be financially successful. Here’s a great book to check out on the matter:

Where Are the Customers’ Yachts: or A Good Hard Look at Wall Street (Wiley Investment Classics): Fred Schwed, Peter Arno, Jason Zweig: 9780471770893: Books

(Credit: Ciaran Rogers)


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