Keep Your Friends Close but Your Financial Adviser Closer

I was doing some research today for some future posts and came across an article that talked about the subprime mortgage crisis. It was talking about the fact that mortgages do not necessarily want to walk away from their mortgage. They just can’t find out who to talk to about it.

Due to the subprime mess their mortgage is now owned by several hundred investors who could be anywhere in the world. So there is no chance of them ever meeting the mortgage owners. Can you imagine how frustrating that might be? They cannot go and see the local bank manager to ask for some breathing space like we could in days gone by.

I’ve always had this view that once a transaction is even once removed from the two people who conduct it, simple problems may become impossible to resolve and often any sense of personal responsibility is lost too.

Right now many of us have our retirement money invested with people we have never seen and never met. There is a complete separation between us, our money and the person who is supposedly looking after it for us. We even forget about it ourselves.

I recall a friend of mine walked to a post office to post a parcel. It was raining so he took his umbrella. He had to fill out all sorts of paper work which took some time to do. When he finished he went straight home. On entering his front door he realized he had left his umbrella at the post office.

No matter he thought, I’ll telephone them and ask them to keep it safe until I go and pick it up.

That’s when the problems began. He could not find a telephone number for that particular post office. There was however an entry for Post Office that had one number on it.

He called the number and asked the person who answered the call to put him through to the Epping post office. They said they did not have the number. So then he asked to be transferred to Epping. The other person said he could not do that either.

By this time my friend was becoming quite annoyed. The Post Office person sensed this and assured him he could help. My friend said no he just wanted to talk to the man he saw that morning at the Epping post office.

The man replied that he could not put him through and again said he was sure he could help him with his problem.

My friend ask the person where he was located. He said he was in Adelaide. (That is several hundred miles away from Epping, down here in Australia).

So my friend just ask him if he could see his umbrella which he had left at the counter in the Epping post office.

Obviously the guy could not see it because he was hundreds of miles away in Adelaide. My friend hung up and just walked back to the Post Office and got his umbrella back.

It is a silly story but this highlights the point I have made. In this case what should have been a five minute call ended up in a frustrating time for my friend and what should have been a simple problem to resolve became very complicated.

This leads me to my title with its slight but important change to a well known phrase about Keeping your Friends Close but your Enemies Closer. In this case you need to keep your Financial Adviser Closer.

Where your nest egg is concerned you need to be in direct contact with your financial planner. That financial planner and his direct subordinates should be fully aware of your investments with them, just like the bank managers of old. There should be a relationship there that is based on mutual trust and respect. They must know you and your investments and be actively managing them with you. Make sure they know who you are by regular contact and questions. They should not just offload your money to some large financial firm and place it in a WRAP account with a third party supposedly monitoring it.

If you have money invested through your employer you have to try and get some sort of representation of your co-workers to meet with your employer and the retirement fund manager on a regular basis and be fully informed of the state of the funds.

So stay very close to your financial adviser at all times so you can protect your nest egg in retirement. Make sure they know who you are.

2 Responses to “Keep Your Friends Close but Your Financial Adviser Closer”

  1. […] NA wrote an interesting post today onHere’s a quick excerptRight now many of us have our retirement money invested with people we have never seen and never met. There is a complete separation between us, our money and the person who is supposedly looking after it for us. … […]

  2. […] first thing to do is you should immediately meet your financial planner and work through the investments you have. Consider instructing them to redeem any funds where the […]

Leave a Reply

CommentLuv badge