Always Ask These Questions
I start every single meeting with the same question:
“Before we get started, do you have any questions, comments, thoughts, concerns, or is anything top of mind?” *
The answer is often “no.”
I expect that from people I’ve worked with for a year or two (or fourteen). They know exactly how we operate, what we do, and how we get paid. But if you are sitting down with us for the first time, these are the questions you should ask.
- How do you get paid, how often do you get paid, and who pays you?
Incentives are important. We charge a percentage of the assets we administer on your behalf (when your account grows, we make more; when it shrinks, we make less). The percentage is based on two things: the breadth of the work and the value of your investments.
In almost all circumstances, we get paid monthly (if not monthly, then quarterly). The amount comes directly out of your investment account. You’ll never get an invoice or a bill from us.
You are the only person who pays us. Were we paid by anyone else it would open a can of conflicts. The best way I can put it? We’re your employee. You’re the boss.
- What am I paying for?
I’ve written about this a few times (see here and here).
You get to decide where you see the most value. Maybe we’re worth our fee because we stop you from making bad financial decisions. Maybe it’s because we help you make good decisions. Maybe it’s because we save you a lot of time or stop you from procrastinating. Maybe it’s all of those things. You get to decide. It’s simple.
If the value we provide you is greater than what we cost, work with us. If it isn’t doesn’t, fire us.
- What would you do if you were in my shoes?
I’ve also written three posts about this (see here, here, and here).
I am always happy to answer this question when asked. But I always caveat it with, “I’m not you and I have my own biases, but here’s what I’d do.”
Make sure you ask these questions. Whether you’re meeting with us or any other advisor or advisory team.
*With thanks to my high school history teacher, Mr. Jung, who started every class with that statement too. It stuck.
