Comments on: Desperately Seeking Advice

By: kaleidors

kaleidors — Thu, 27 Nov 2008 07:46:02 +0000

Why all the hostility for those asking for advice? Trent never mentioned the readers were asking for quick easy solutions–only that their questions are better answered by a lawyer/financial planner, with an additional admonition for honesty.
Seeking more information (like asking advice) is one of the early stages for solving a problem. Sometimes, like Trent said, just writing it out is enough to process what is going on. Sometimes you know what you need to do, but not how. Sometimes you’re completely baffled–but you got to start somewhere.
I don’t know… I just imagine ya’ll lost for hours in a hardware store looking for flanged solid wall anchors because asking someone would be the quick, easy solution.

By: Kevin

Kevin — Wed, 26 Nov 2008 17:34:13 +0000

As a CPA I agree on the methods you suggest on finding an advisor – whether it be financial, lawyer, etc. Most of our new clients are referrals from existing clients and I think that method works great. From our perspective it provides feedback that we are doing a good job and gives us even more incentive to keep doing so – since doing a poor job just once may lead to multiple clients leaving.

By: Brent Perry, CFP

Brent Perry, CFP — Wed, 26 Nov 2008 14:33:35 +0000

Trent,

You should mention where folks can go to find a fee-only advisor. At the risk of this looking completely self-serving (I am a fee-only advisor and a member of the first 2 organizations), here are 3 places one can look for a fee-only advisor:

1. http://www.napfa.com – The National Association of Personal Financial Advisors
2. http://www.cambridgeadvisors.com – The Alliance of Cambridge Advisors
3. http://www.garrettplanningnetwork.com -

By: Ethan

Ethan — Tue, 25 Nov 2008 22:27:07 +0000

I was also a financial planner for a short time, and I think the most important part of finding one is making sure they are someone you trust, and be aware than a fee is usually an ANNUAL fee, say $300 or more.

I worked as a fee only planner and got out when I realized that the job was really a marketing job. We now go to an Edward Jones planner who helped us set up an extremely diversified index-based system that we just sit back and contribute to. No buying/selling to rack up the fees. We’re still pretty young so we still have the advantage of time.

Also, don’t hesitate to take the advice you’re given and run it by other planners/advisers or people you know who have financial knowledge.

By: Paul Williams @ Crackerjack Greenback

Paul Williams @ Crackerjack Greenback — Tue, 25 Nov 2008 15:32:33 +0000

Great article, Trent. I’m a financial planner and I agree with you that reading about and applying personal finance techniques to your own situation is very different from advising other people on their situation.

One of the most difficult parts of my job is getting ALL the information I need from clients, but it is extremely important because I CANNOT give good advice without all the information. Sometimes a few small facts can make a big difference in the advice.

Keep up the good work, Trent!

By: Andy @ Retire at 40

Andy @ Retire at 40 — Tue, 25 Nov 2008 09:53:12 +0000

Too true. Since I started blogging I’ve had a number of people just ask me very specific questions … and they expect simple answers too. Usually in response to their one question, I have about 10 I’d like to ask back before I answer.

Even then, then answer also involves saying “but you should definitely seek professional advice”.

By: Saver Queen

Saver Queen — Tue, 25 Nov 2008 04:16:53 +0000

Great advice Trent. Especially about being honest, and finding someone you can trust – not a financial advisor who is really a salesperson in disguise. My advice is to invest time into learning – getting third, fourth opinions, reading up on the subject, and putting in the time to research it thoroughly, actually forcing yourself to actually learn – even if the subject is difficult for you and doesn’t come easily or naturally. Furthermore, don’t be afraid to go against the grain. If you’re hearing advice from other people but it doesn’t make sense to you, don’t feel pressured to go with the herd. It’s often people who do things differently who have the most success.

By: Maggie

Maggie — Tue, 25 Nov 2008 03:49:02 +0000

I think Trent gets asked these questions because people want quick, easy answers which do not require them to do any thinking nor need any kind of effort on their part. “Oh I have problem. Oh I am a victim of wicked credit card companies / banks / fill in the blank. Woe is me.” Some people need to take responsibity for themselves and their own lives – possibly for the first time ever.

By: A Dawn Jornal

A Dawn Jornal — Tue, 25 Nov 2008 03:04:03 +0000

My perspective on this issue is very simple. That is : “No one cares about your money but you. Only you know how hard it is to earn a dollar, and even harder to save a dollar – that’s why self-interest is the best interest. The funny thing about money is that everyone can give advice about your money, but they are not nearly so casual with their own money.”
I stated the same thing in my book “Invest Now” and I wrote a post on this too.

By: Ryan McLean

Ryan McLean — Tue, 25 Nov 2008 01:57:27 +0000

I understand why you can’t give specific advice. Because you are not a qulaified financial advisor. If you give people financial advice and they follow it and it doesn’t work that makes you liable to be sued…and you don’t want that. This was a great post and made me think a lot

By: Vincent Scordo

Vincent Scordo — Tue, 25 Nov 2008 01:48:18 +0000

Hi Trent,

Indeed, I think you are correct in not offering specific advice on a given finance issue a reader is facing. If the reader has read your content in detail they should be able to gleam some guidance from a topic that is associated with their issue (debt, investments, how to save money, etc.).

I’m also not a fan of giving out finance advice, but I do like to give other type of advice freely (how to save money, living a practical life, etc.)

Thanks for the great blog!

http://www.scordo.com/blog/blog – a practical living blog

Vince

By: Chris

Chris — Tue, 25 Nov 2008 01:29:44 +0000

I enjoyed this post very much. I used to be a financial advisor and it was like pulling teeth trying to get the entire story out on the table. It was especially difficult when spouses were unwilling to be honest with each other–to the point you could taste the stress in the room. What I think is important to remember is that you WON’T get ANYWHERE if you aren’t honest with yourself or the person that you finally choose as your confidant(be it your financial advisor, a lawyer…or Trent =). Secondly, make sure you talk with your confidant on a regular basis, even if you have to schedule time. It will help you stick to your plan.

By: A Dawn Jornal

A Dawn Jornal — Tue, 25 Nov 2008 00:14:55 +0000

By: A Dawn Jornal

A Dawn Jornal — Tue, 25 Nov 2008 00:13:34 +0000

By: Stop Getting Cheated

Stop Getting Cheated — Mon, 24 Nov 2008 23:14:11 +0000

Excellent suggestions. It’s a shame you have to endure readers who want a quick and nice solution to a problem which has probably taken a protracted length of time to fester.

Noah certainly underscores your warning to be truthful. It is good to be validated by someone in the profession.

Trent, you are gifted in providing use beneficial information without casting yourself as an “expert.” In all the time I’ve been reading your posts, you have been consistent in maintaining the posture of a blogger offering personal experiences that might help others. You are upfront about your shortcomings, you stand firm on your premises, and you always offer the reader freedom to their own choices. You do a great job, buddy.

By: RCE

RCE — Mon, 24 Nov 2008 22:58:05 +0000

>>>Second, if you’re seeking a financial advisor, look for a fee-only advisor….<<<

I disagree with your assessment of fee-only vs. fee-based. You seem to indicate that the fee-only model is devoid of conflicts of interest, when in fact this is just not true. Many times a combination of fees and commissions are actually best for the client, and sometimes only commissions are best for the client.

By: George

George — Mon, 24 Nov 2008 22:04:36 +0000

> In the end, make sure the advice passes your
> smell test.

There are some people who have a terrible “sense of smell” and tend to believe what they WANT to believe, rather than remembering that there are no free lunches when it comes to finances.

Do you have any advice for that crowd?

By: matt @ Thrive

matt @ Thrive — Mon, 24 Nov 2008 21:11:40 +0000

Thanks, Trent, for recognizing psychology as an important part of personal finance: I’m always amazed how many people make it only about numbers and not about how people interact with the real-world behaviors that make up their relationship to money.

Naturally, I don’t think anyone should have to spend all their time dispensing advice, but I can understand people’s frustration. In the rural town in Oregon where I was raised, we didn’t have a financial planner (I think there might have been a CPA at best) and even if there was, few could have afforded their services. I think we need to make an effort as a country to raise the general level of financial education so that people don’t need that kind of professional service, or at least need it less regularly.

The web helps some there. Personal finance blogs, sites that help you manage and organize and get advice like Thrive, and a variety of calculators and education aids are a good start. It is tremendously hard to give personalized financial advice (it has taken us a long time to get good at it), but technology allows people access to their spending in a really interesting way and I think that we, as a society, can do more to use these tools to improve our own finances.

Because even if someplace like Thrive gives good advice, we still have to seek it out and follow that advice. Inaction is really the key here – kudos again to Trent for making a plan to follow.

By: Noah

Noah — Mon, 24 Nov 2008 20:46:32 +0000

As someone who is studying law and worked in firms, Trent’s advice is spot on. Never, ever hide things from your attorney. If you don’t trust them, find a different lawyer and tell -them- everything. Clients lying to lawyers makes the whole process take longer (which you don’t want financially), and sometimes makes the whole process impossible (which you don’t want at all). DO NOT LIE OR HOLD THINGS BACK FROM YOUR LAWYER!