Unfortunately communication issues can run the gamut. This could be something as simple as phone calls or e-mails are not being returned promptly. Or perhaps it’s either a lack of communication or just inconsistent communication. Either way, communication issues can certainly make your relationship with your financial advisor a challenge. Many smart advisors will promise to return all of their calls within 24 hours. This seems like a good policy and is also a clear measuring stick. We have simplified our approach and called it the “Sunset Rule.” Our goal is to return all of our clients’ calls by sunset, that day. No, unfortunately we’re not always successful doing it. Having this as our goal however and communicating it to our clients is important. It sets both ours and our clients expectations. Continue Reading: 4 Reasons to Change Your Financial Advisor
1) The Federal Government Figures Appear to be Gamed
The Bureau of Labor Statistics (“BLS”) issues the inflation numbers monthly. It’s convenient that the government inserted the word ‘Labor’ into this bureau. Otherwise it would just be “BS”. The number to focus on is the Consumer Price Index (“CPI”).
To do this calculation, they strip out food and energy costs. Their reasoning for this is that these categories are too volatile. Fair enough, they are. But don’t forget, you are still constantly buying food and energy. After these two are removed, this is the so-called Core Inflation Rate. This is currently running at 1.6% annually as of January 2014.
The primary issue with how this number is calculated is what they call “quality improvements.” For example, if you buy a new computer that has more memory, a faster processor and better resolution in the monitor, this is adjusted in the inflation index. The bottom line is that the Core Inflation Index is suspect at best.
In our last post we showed you 3 Proven Reasons You Need a Financial Advisor. Here are 3 easy ways to find a financial advisor. 1) Ask Friends and Family Friends and family is the easiest way to get started looking for a Financial Advisor. You see them the most and communicate with them regularly.… Continue Reading: 3 Easy Ways to Find a Financial Advisor
1) You Don’t Have the Expertise Today, we live in a complicated world. Things are very complicated in financial planning. “You don’t know what you don’t know” is an appropriate quote. And so it is with financial planning. It doesn’t take much these days to have a complicated financial picture. Sure, the more assets you… Continue Reading: 3 Proven Reasons You Need a Financial Advisor