I don’t know about you but when I decide to go out to eat, where I go depends on what mood I’m in.
- Burger – I’m probably heading to a bar or pub.
- Fish - I’m going to a seafood place
- Steak - Has to be a steakhouse they almost always have the best cuts of beef.
- Pasta - Italian, what can I say?
- Sushi - You have to go to a specialty place for this. I don’t mess around with raw fish.
What I do know is that if I want Chinese food I’m not going to the Italian restaurant and if I want sushi, I’m definitely not going to a pub.
Sometimes when I’m going out for eat I can’t decide what I’m in the mood for. I have a couple of restaurants that I frequent just for these occasions. I know that I’ll get some good food at these place but they don’t specialize in a certain type of food. These restaurants won’t necessarily satisfy a craving I have but they will fill me up. By understanding this it really saves me from being disappointed.
Are you a fan of buffets?
What I notice about buffets is that I’m definitely going to get full but I’m really not going to have any really good food. It depends on what you value, quality or quantity. Buffets help you find instant gratification but they don’t give you any real quality of food.
Your Financial Planner
Is he your financial buffet? From my experience, most financial planners specialize in certain areas.
- Investments - wealth managers that charge a percentage of assets under management
- Life, disability & LTC insurance – insurance specialists that are paid on commissions
- Auto, homeowners & liability insurance – property and casualty firms that are paid on commissions
- Holistic plan – financial planner that looks at your full financial picture, could be compensated a few different ways
- Taxes – an accountant that is usually paid by the hour or a flat fee
- Wills & Trusts – an attorney that is usually paid by the hour or a flat fee
Just as there are more types of food than I listed there are a lot more financial areas that you have, and will continue to have to, make decisions about. Unfortunately, the easiest solution (a buffet) isn’t always the best. If you are looking to have quality service and quality advice you just might need to deal with a few different specialists in the areas of your finances that need the most attention.
Your financial planner might be a buffet. They have a ton to offer but none of it is really any good. They will fill you up with a bunch of crap though. Is that what you want?
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{ 14 comments… read them below or add one }
Quickly reading the title and though you meant Warren Buffet
I missed reading the ‘A’.
.-= Investor Junkie´s last blog ..Do You Value Your Time Or Your Money More? =-.
No buffet planners for me. If they don’t take the time to explain what they’re selling me….I’m out the door.
.-= Ken´s last blog ..Weekend Linkage – Olympic Edition =-.
This is a great analogy =) Certain financial planners are real “generalists” and to manage your money better, it IS a good idea to try a see a few different people. I have been looking around for a pre-authorized mortgage and I find it interesting that Financial Planners are involved too. Personally I would rather see a mortgage specialist for this HUGE investment, right?
.-= youngandthrifty´s last blog ..Step-by-step Guide on How to Save Money on Your Cell Phone Contract =-.
@youngandthrifty
You are exactly right. If it has anything to do with your financial situation some planner out there is dabbling in it. I meet planners that do mortgages, sell house, do taxes, do it part time (mechanics, equipment sales), it never ceases to amaze me. It also scares the crap out of me because sometimes misinformation can be worse than no information.
Yeah! It scares the crap out of me too! I always thought all they did was recommend which mutual fund to buy and that’s it. I’m finding out that they really do dabble in more and more.
.-= youngandthrifty´s last blog ..If You Had a Million Dollars… =-.
@youngandthrifty
The best way to find out about a particular financial planner is to ask them. Be direct. They will either directly answer you or you probably don’t want to work with them anyways.
@Investor Junkie – Me too! I saw the story on Twitter also, and thought if I had a financial adviser like Buffett I wouldn’t bother blogging about investing myself
@Evolution – Unfortunately the system sort of funnels advisers into being jack of all trades, I think. If I could be just an investing planner I might even consider a career swap, but I’m not interested in learning the minutia of the tax system for every permutation of retiring married couple with two dogs, etc.
.-= Monevator´s last blog ..Playing chicken with house prices =-.
Thank you to @Investor Junkie for pointing it out. I didn’t of the Buffet/buffet mix up when I wrote the title. Sorry for any confusion but it got you to read the post right?
@Monevator – I definitely agree that the system is funneling advisers to this sort of a business but I also see the more successful people being specialized in one or two areas and working with other specialists to do what’s best for their clients.
They aren’t the size of a buffet but instead have a wide selection by working with various gourmet cooks. So all your food is prepared fresh by a specialist in that area.
@Evolution Of Wealth: I just thought it was funny though
Shows you have to pay close attention to things!
.-= Investor Junkie´s last blog ..Is Owning a Toyota Risky?? =-.
My grandpa uses a planner at Merill Lynch and I’m glad I don’t know the fees he pays because it would make me throw up. Financial planners can be good for certain personalities, but taking your money into your own hands is the best way to watch over it for 98% of people.
Educating myself about money was one of the best things I ever did in my life.
Great post!
Austin @ Foreigner’s Finances
@Austin
I wish I could agree with you but there are so many people out there that just don’t have a clue about what to do with their money. This is evident if you look at the returns investors get compared to market returns. Most people need someone to save them from themselves. That might change with all the great personal finance bloggers out there.
As for your grandfather, I’ve heard Merrill Lynch is trimming back fees because people have caught on. It didn’t use to be unusually for advisers to charge advisory fees of 2-3%. That’s what I use to see all that time. It amazed me.
That’s true. I guess it depends on the level of wealth you have and how beneficial an advisor would be.
.-= Austin´s last blog ..A Guide to Traveling Internationally with Credit Cards =-.
I don’t think I’ve really seen a generalist financial planner like that. A lot of them tend to specialize in one form of trade or the other. Maybe it’s easier for them to hone in on one to do a better job.
Personally, I would be on the look out for a good tax accountant. Preferably one who knows not only corporate tax, but the tax laws in other countries. Being able to legally reduce your taxes from dividends, income, and capital gains I strongly believe is crucial to a successful life in the future.
I really wouldn’t want my financial planner to be like a buffet. Like you said, you go to a buffet to eat a lot of food, but it won’t be the highest quality food out there unless it is a really expensive buffet. I would prefer a financial planner who specializes in one part of the trade and does one specific thing really well. This was a really good analogy.
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