Perhaps you are a "Myopic" who primarily focuses on certain
areas you like to deal with, perhaps the strategy of the day, or maybe
you are being advised now by a commissioned salesperson that is not
covering all the bases for you. Often you may find your finances
fragmented by old 401k(s), a few different insurance policies, and a
few self-help finance books in which you never got past the first few
chapters. You could benefit from some ongoing financial coaching from
an advisor who can help you round out your financial picture, using a
Scored 9-10, you may be a Do-It-Yourselfer
on the right track. It may be that you are well-off and savvy enough to
be a "Delegator" who has selected good advisors. You might benefit from
a one-time overview or second opinion from an objective professional to
see if there is anything you're missing or that needs updating.
how did you score? As a financial advisor, you may feel that my
questions are slightly biased towards the industry. In reality, it is
this type of questioning that the sophisticated investor can answer
quickly and with ease.
(http://www.sec.gov/answers/accred.htm) typically have their own tax,
financial, and legal advisors. They are typically highly intelligent
investors, yet seek counsel from experts who work in their respective
industry. These investors typically know exactly what their time is
worth and will typically outsource activities which cost less than they
make per unit of time, such as landscaping or oil changing.
what does that mean to the middle class investor? It means at least
finding someone qualified whom you can bounce ideas off of. If you are
a do-it-yourself person, regardless of score, and enjoy your discount
trading, then find someone to meet with periodically on an hourly rate,
who is objective, and who wont shove products their company owns (aka
proprietary products) down your throat. Worse case scenario, find one
you are comfortable with and take him/her out for a full round of golf.
After 18 holes, you will have a much clearer idea about where you stand
If you require more in depth guidance with your
investments, a qualified full service advisor may be appropriate.
Bottom line, regardless of what avenue you decide to follow, at a
minimum, I suggest following an investment plan my father taught me:
Dont take advice from people more screwed up than yourself.