Lying to a client or prospect is never good in business, but it’s an especially bad way to start a relationship.  I received an email today from “Victoria Lopez” at “Growth Titan”.  The subject said:  “Michael, just pinged your Linkedin”.  It opens with “I messaged you on Linkedin to arrange a call, but thought this might be better”.  Of course I received no such message or connection request in LinkedIn.

Victoria is in the lead generation business.  I am inundated on a daily basis with pitches from firms that want to set up appointments for me with prospective clients.  It’s not a service I am interested in.  I guess Victoria is just trying to get everyone’s attention.  Unusually for me, I did open her email.

Once I realized she opened with a lie, I had no interest in anything she had to say.  Even if she was selling something I needed or wanted, how could I trust her?  Would you?  It’s also an industry that doesn’t have the best reputation.  Stories of the same lead being sold to multiple customers are common and many are not screened for whether they are a match to what the person or firm on the other side of the desk does or the type of clients they work with.  In other words, bad apples give the industry a bad rap.

This got me thinking about my own profession.  In the broadest “big-tent” category of “financial services”, there is a well deserved lack of trust.  There are squadrons of sales reps pushing all types of financial products and services.  Most are held to a suitability standard – meaning the product or service has to be something that you might need or benefit from.  Consumers end up with purchases that have little value to them, cost too much, and are far from the best solution to their problem, to name a few shortcomings.  They often get the “this is the greatest thing since sliced bread” sales pitch and a stack of legalese disclosures that they don’t understand and hence usually don’t read.  Any questions they do ask are often glossed over.  Bad apples again give everyone a bad reputation.

My space in the tent is very different.  As a Financial Planner and Wealth Manager I work differently.  Federal and State regulations, as well as those of the CFP Board of Standards who issued my certification as a CFP®, require me to work as a Fiduciary.  It is the highest standard in dealing with my clients.  If you are not familiar with the Fiduciary Standard – you can read more here: http://www.financialconnectioninc.com/fiduciary-standard 

I realize my most important value to my clients is my fiduciary duty – an unwavering dedication to putting their needs and interests first in all cases.  In a world full of sharks, I will always be their lifeboat.

The Bottom Line:  There is always room in my lifeboat.

–Michael Ross, CFP®

When I was in High School, my health teacher (and lacrosse coach) once wrote the word Assume on the blackboard.  He said “when you assume, you make an Ass out of U and Me”, as he separately underlined the three parts of the word.  You could have heard a pin drop – even in a class where we had watched a film of a baby being born.  Teachers didn’t say Ass back then – at least not in class, although on the lacrosse field his language was frequently a bit more colorful.

Once we all got over the shock, I realized there was wisdom on the blackboard.  What he was really trying to convey is Knowledge Is Power.  However, I doubt if he had written that on the board, I would remember it decades later.  I also now realize if he had trademarked the U as a synonym for You, he would have made a killing when texting was ultimately invented.

It involves getting a verification confirmation via snail mail, so it can take a few weeks.  However, once you are registered you can log on and get your info any time, which you should do annually, even if just to check the accuracy of their records.  It’s important to know where you stand and incorporate reality into your planning.

I am sharing this wisdom to emphasize the importance of knowing the facts of where you stand financially.  This is a cornerstone of the Financial Planning process.

One assumption many of our clients and friends often make is what their Social Security benefit will be when they begin to collect.  While claiming strategy is often a complex decision, your estimated benefits should not be a guess.  An inaccurate assumption here can really harm your retirement plan.  It’s information we will collect from every Financial Planning client.  Whether you retain a Financial Planner or do it yourself, you can get this information.

The Social Security Administration sends out an annual statement (SSA-7004) to all taxpayers over the age of 60.  That’s a bit late to start incorporating that info into your planning.  Everyone can get one by going here:  www.ssa.gov/myaccount.  The registration process is cumbersome as it combines government bureaucracy and inefficiency with the financial sectors fraud paranoia.  You will need a Drivers License, and verifiable street and email addresses.  The DNA sample requirement proposal did not pass the Congress. 

It involves getting a verification confirmation via snail mail, so it can take a few weeks.  However, once you are registered you can log on and get your info any time, which you should do annually, even if just to check the accuracy of their records.  It’s important to know where you stand and incorporate reality into your planning.

The Bottom Line:  Knowledge Is Power In Your Financial Planning.

–Michael Ross, CFP®