Investing money the right way is a tough code to crack—that’s why having a financial advisor is a good idea. Financial advisors probably handle their own investments too, and that’s why you should ask them what they do with their money.
Shannon McLay, in a guest post at money blog Budgets Are Sexy, suggests asking your advisor how they invest their money. McLay is actually a financial advisor herself and she explains why you should ask:
Advisors all have what I call their “secret sauce” or their investment portfolio that they utilize for clients. Most advisors guard their secret sauce as much as Bush’s guards the secret to their baked beans… After some finagling and threats by my manager, I became privy to the secret sauces of many advisors and what shocked me the most was how different their client’s sauce was compared to their own. How could you invest one way and do something different with client money? Unfortunately, the basic answer to that question is that you make more money selling some investments over others…
McLay advises that asking for their personal strategy can make for an awkward situation, but when it comes to your money, you need to take care of it as best as you can. You might get a lot of different responses, and they may even go as far as trying to convince you that they don’t have any money invested at the moment—which is probably a lie. It can be tough finding a good financial advisor, but if your advisor is willing to clue you in on their personal strategy, they’re likely to care about your money almost as much as you.
I’ll Show You Mine… | Budgets Are Sexy
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