Finding the right match

What a dating app can teach us about finding the right financial advisor

Photo by Nong on Unsplash

I recently stumbled across an article that I thought was interesting.

Maybe you will too.

The online dating site OKCupid claims to have determined the 3 questions that best predict whether a couple would last.

Read on to see what they are...

But it got me to thinking about how challenging it can be for you to find the right match when it comes to financial advice.

Wouldn't it be great if there were simply 3 questions you could ask to determine who is a compatible, trustworthy financial professional you could hire and work with for the rest of your life?

Heck, even if there were a fool-proof list of 30 questions, I think many would prefer it to the guessing game that most people seem to suffer through currently.

I'm not suggesting everyone wants or needs a financial advisor, but many people I've met and had the pleasure of getting to know over my career have made the decision that they'd rather spend their free time doing something other than financial planning and portfolio management.

Even though they're absolutely capable of doing it themselves.

Some people don't have the time to tackle this work anyway.

So if you're interested in finding an advisor or perhaps upgrading your current advisor, where do you start?

What questions should you ask?

Well, as you might have guessed, I have some opinions on this topic.

And I want to be clear to call them "opinions" and not "answers" since, as a financial advisor, I'm both biased and have a certain worldview about how financial advice is best delivered.

A few examples:

• Do you want to work with a financial advisor who is essentially a product pusher?

• Do you want to be interrogated?

• Is your advisor a fiduciary? Should they be?

• Does your advisor take their own advice?

• Have they used advertising and called it an award?

• Are you one of 60 clients? Or one of 600?

Again, the above aren't black and white... only some of my opinions.

I'm sure you can find plenty of people that agree with my perspectve as well as just as many who disagree.

If you'd actually like to consider a few questions you can use to evaluate and potentially hire an advisor that's right for you, here are some from my friend Carl Richards.

And here are some specific questions I would suggest you consider if you want to find an advisor who's the right match.

Ultimately, I think many people are so afraid of making the wrong decision that they don't make any decision at all.

And I get it... what with the Bernie Madoffs of the world out there and all.

That's why I think it's important to listen to your gut feelings about someone.

If something - anything - feels off to you or you don't feel absolutely confident that you're talking with the person who's a great match for not only what you need, but also who you are as a person, then walk away.

There are plenty of financial advisor fish in the sea...

And if you're still curious about the 3 "magic" questions as determined by OKCupid, they are:

Do you enjoy horror movies?

Have you traveled alone in a foreign country for fun?

Have you ever wanted to chuck it all and live on a sailboat?

I'm not sure how scientific these finding were or whether they'll really help people find their soulmate, but here's the full article if you're interested.

Whether you're looking for love or reliable financial advice, I wish you the best out there.

Have a fantastic weekend,

Russ

Links & things

Please see this great post from Linkedin about how dividends really work.

For more on the relativity of risk, read these:

• Why Stocks Are Safer Than Bonds

  • When I wrote the above article in 2008, a 1st class stamp cost 42 cents.

  • Today, a stamp costs 73 cents, a 74% price increase over 17 years.

• The Eternal Message for 2025

Thanks for reading.

Until next Wednesday,

Russ

Retirement Planning for Women

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Disclosures