ARBOR WEALTH: Questions to ask when choosing an advisor

Margaret R. McDowell
Special to The Log
Published: Tuesday, November 26, 2013 at 03:36 PM.

Editor’s Note: This is the first in a series of articles

“We've been so busy keepin' up with the Jones’… Four car garage and we're still building on; Maybe it's time we got back to the basics of love.” — “Luckenbach, Texas” by Waylon Jennings

Where does your investment advisor live, and what does he/she drive? What are his/her spending habits? And why should you care?

David John Marotta writes in MarottaonMoney.com that there are 10 important safeguards regarding hiring a prospective financial advisor. One is avoiding an advisor with a lavish lifestyle. 

“Your best defense is to engage an advisor whose daily practices reflect ways to safeguard the money under his or her fiduciary care,” says Marotta. “As part of identifying such an advisor, make sure there is a mutual understanding that an ostentatious lifestyle is not a valid financial goal.” 

Does your investment advisor purchase showy goods like vintage autos and pricey art? If so, according to Marotta, you may want to reevaluate your relationship.

“Wealth is what you save, not what you spend,” he says. “That’s why an ostentatious and excessive lifestyle is a red flag for an investment advisor. The rich buy investments … not liabilities like boats and cars.”



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