A neurologist, proctologist, and a PhD walked into a bar…
I’m sure there’s a joke somewhere that starts like that, but
I don’t know it. What I do know is that
if you need a doctor, there’s 3 of them right there…in the bar!
Ok, in reality, they are all doctors, but depending on what
you really need, you may only want to speak with one of them. They are all really smart people, but they
focus on different things. You probably
don’t want the PhD operating on you, just like you wouldn’t expect the
neurosurgeon giving you advice about astrophysics.
Similarly, I had to explain to someone the nuances of college
financial aid. I was proposing a class
for the Winter / Spring session and spoke with the person in charge of
scheduling classes. Her initial reaction
to me was – we already have college financial aid classes and don’t want any
duplicates.
I was expecting her reaction. So I had to tell her the difference of what I
wanted to do versus all of those other classes.
And once she understood, she enthusiastically approved my idea.
That got me thinking.
When it comes to money, there are so many people / experts / talking
heads out there but how are people to know the difference. Some people focus on investments, some on
debt management, some budgeting, and so on.
There are all different fields of expertise available. But how do people learn about the difference
so they can tell the difference between one financial expert and the other.
With doctors – medical, anyway, you usually can tell by the
name of the practice, but you can’t do that with financial advisory firms. Even my firm, Longhorn Financial, doesn’t
suggest a specific area of expertise.
How would you find out the expertise of a particular
adviser? I guess you ask. Or look at their website or social media
page. But it’s a key question because
after all, if you need a neurologist, you don’t want to talk to a proctologist!
The rule of thumb is that if an adviser works for:
- an investment firm such as Edward Jones, that person is likely focused on investments
- an insurance company such as Prudential, they likely handle insurance and investments
- a bank or credit union, that person likely focuses on investments and annuities moving money out of your certificates of deposit
And an adviser who is “fee based” typically means they
charge a percentage of assets managed, which means they are investment focused. Note that some “fee based” advisers charge a
per hour fee instead of a percentage.
Please know that these are generalizations, and there are
very good people at all of those types of firms. The type of firm they work for may indicate where
that person may spend the majority of time with you.
If you are in a situation where you would like some expert
financial help or insight, be sure to ask what for their area of expertise or
focus.
By the way, what’s the class idea? How to read a financial aid award letter. This class will go over what it all means,
key questions to ask, and ways to potentially get additional aid even at the
last minute!
As for Longhorn Financial, I help regular working families
find ways to save more without cutting lifestyle, protect what they already
have, and grow money safely.
Clients are mostly Gen X and Gen Y families. Areas of focus typically are debt management,
college savings, and retirement savings using conservative strategies.
