| You know you need to hire professionals to guide | | | | finances thread through every part of our lives. So |
| your investing and that competency is key. But how | | | | we must be careful that adjustments for a quick tax |
| do you know ahead of time if an advisor has the | | | | fix do not have a huge adverse impact on cash flow. |
| expertise to handle your level of needs? Similarly, | | | | Similarly, we need to be concerned how tax savings |
| how do you know when you have outgrown your | | | | in the current year will effect a clients long term |
| advisor(s)? Here are some things you need to weigh | | | | estate plan goals. The whole picture (in space and |
| when evaluating your choices. Experience - as an | | | | time) needs to be brought into play. Collaborative. As |
| advisor. The starter pedestrian question, "How long | | | | finances thread through every part of our lives, they |
| have they been advising or working in the field?" is a | | | | inherently create an overlap across specialties. E.g., |
| good start, but can only show longevity and having | | | | taxes, legal, insurance, real estate, and financial |
| survived a boom and bust cycle. A key follow-on | | | | planning. We need not only an advisor who can think |
| question is, "Can they describe successes and failures | | | | in comprehensive terms, but also one who will |
| and key lessons learned?" However, don't let "years | | | | collaborate with other advisors. Integrated. If your |
| in grade" be the only guide. A brilliant 20-year old with | | | | advisor thinks of collaboration as doing their part and |
| only a year of experience may be a better choice | | | | then handing off the client and results to the next |
| for you. BUT, you must recognize the trade-offs and | | | | advisor, they are completely missing the boat. |
| be prepared to compensate. Additionally, by following | | | | Individually, each specialist has his or her expertise |
| the points below, the inexperience of one advisor will | | | | and, given the same information, will recommend a |
| be offset by other advisors. Experience - personal. | | | | perfectly valid solution. Unfortunately, you would be ill |
| They should be their own best client. What have | | | | served to divide up and parcel out your planning |
| they got to show for themselves? Whether your | | | | because with four different advisors, you will get |
| planner is younger or older than you (and thus has | | | | four, often conflicting, answers. It is not their fault, |
| different growth and cash flow needs), they should | | | | per se, but rather it points out the need for an |
| still be able to lead by example - to demonstrate that | | | | integrated plan. The solution is to work with advisors |
| they know what they are doing by discussing their | | | | who promote not simply "collaboration", but working |
| personal portfolio. Are they willing to show you their | | | | in an integrated team (which might be composed of |
| portfolio? Does it demonstrate their skill? Currency. | | | | advisors from 4 different companies). Only by true |
| Laws are constantly changing, thus creating and | | | | collaboration amongst advisors (where they are willing |
| eliminating possible choices. Is your advisor familiar | | | | to sit down in a room together and hash out an |
| with the current changes? This one takes a little | | | | integrated plan) will you be best served because the |
| research. Call several advisors and ask them what | | | | best solution is often none of the individual answers, |
| were the three most important changes in the last | | | | nor even a compromise between them, usually it is |
| year or two. Google these items. Then ask your own | | | | something different that requires input from all |
| advisor the same question. Ask about the topics | | | | advisors - a synergy of their specialties. In summary, |
| others mentioned but which your advisor did not. If | | | | the over-arching goal is a Comprehensive, |
| you have had the same advisor for years, get an | | | | Collaborative, Integrated Financial Planning Team. |
| independent check-up. Comprehensive - in space and | | | | Robert T. Boyer, Ph.D., Vice President of San Diego's |
| time. In computer science, we talk about a "greedy" | | | | Finest Real Estate, developed the unique concept of |
| algorithm as one that takes the current best | | | | Real Estate Financial Planning (REFP) to fill a void left |
| apparent choice without regard to future actions. We | | | | by the financial planning industry. By incorporating |
| contrast this with algorithms that attempt to achieve | | | | REFP into a collaborative financial planning team, we |
| "global optimization" by considering the consequence | | | | are able to develop a fully integrated financial plan, |
| of the current choice in light of other (future) | | | | both saving and earning clients millions of dollars. |
| choices. Bringing this back to our topic, we note that | | | | |