WSJ: How to Build Your Financial Dream Team

From the Dec 31, 2011 WSJ:
formatting link

How to Build Your Financial Dream Team
Some good things in this article to review - for example, they point
out that "a good estate lawyer [] shoul dbe weighing whether you should
make moves to take advantage of the current $5 million gift-tax exclusion
-- which is scheduled to drop to $1 million in 2013 -- rather than
waiting until the end of 2012 to make recommendations."
[As an aside, that's a huge drop - and while it's easy to think that
anyone who's got enough money that this kind of thing is an issue
probably has folks like these attorneys on call - they don't - and
the $1 million exemption hits a *lot* more people.]
The article reiterates a point that I've made many times - that
just about anyone may call himself a "financial adviser" (which
is *not* the same thing as a "registered investment advisor") -
and that "insurance sales people, stockbrokers, accountants and
even lawyers might call themselves "financial advisers".
A couple of organizations mentioned in the article as places to
go to look for a good financial advisor include NAPFA, the CFP
Board, and the FPA.
Anyway, it's a nice article with some important points about
how to build a "team" - insurance, attorney, accountant, advisor.
Reply to
David S Meyers CFP
Does a financial advisor who selects his own portfolio have a fool for a client?
Reply to
Don
Don writes:
I'm not sure if you're kidding here or not. As I said, there is no real unambiguous definition of "financial adviser". There is a clear, regulated definition for "registered investment adviser" (or "RIA") and representatives who work for/as an RIA, called "investment adviser representatives". So I'm wary of any discussion centered around the term "financial adviser".
That said, there's a certain expression about "eating one's own cooking". By no means is it reasonable to expect that the portfolio an adviser puts together for himself should be the same as a portfolio he puts together for any particular client, any more than any two clients should have the same portfolios. If an adviser can be trusted to put together a portfolio for his clients, I should hope that he's capable of putting together a portfolio for himself.
As in many things, it often helps to have a third party do a sanity check. But this is not generally like the proverbial attorney who has a fool for a client, or like a surgeon trying to operate on himself.
Reply to
David S Meyers CFP

Site Timeline Threads

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.