Lying, Looney and Drunk Customers

Last week, we looked at one half of the advisor-client relationship. It wasn’t always pretty. This week, we’ll look at the other half. It also ain’t always much of a looker. Perhaps they’re meant for each other, then?

Here’s a clip that illustrates the client-side of the problem. If you’re sensitive to bad language, just skip the last 10 seconds or so.

This clip was making the rounds a few years ago and I think it’s worth while watching.

So, are you honest with your advisor?

According to a survey by Securian, 29% of clients lie to their advisors. That’s quite a chunk!

The most common topic to lie about appears to be debt. Ah ha! I knew THAT was a word far dirtier than anything in the above video!

Half of the respondents said that it was too personal to talk about while the other half said that debt wasn’t relevant anyway, so they didn’t mention it to their advisor.

Weird how debt would be something to hide since it’s pretty much impossible to do so successfully anyway. Clients also sometimes behave in strange ways with regards to debt. They’ll say that it’s important for them to erase it but then, they’ll waste new income not on paying down the principal of their debt but on buying up new toys.

Anyhow, perhaps the biggest underlying motivation for lying is that the client will be judged by his habits. Well, yeah, he will be. So what? A good advisor won’t display how he personally feels about your misbehaviour and will focus only on how to fix it. He certainly won’t go blab about it to anyone else, so who cares what he may think to himself!

Fess up to your debt! Get a real plan to get rid of it and move from debt to profit!

Your advisor really can’t help you if the inputs you give him are just garbage.

Another thing I hear is about clients lying regarding their net-worth or the source of the cash they’re plunking into their accounts. If you’re putting in a huge sum of money that’s just the result of a one-time event like an inheritance, SAY SO! Hopefully you’ll talk with your advisor about building portfolio management skills before plunking everything into a single risky stock!

Ah yes, speaking of risky stocks, here’s one for Mr Beerver’s February portfolio contribution! DFGEX is a reit that Mr Beerver will want to add to his portfolio. It’s a mixed US / International fund with approx. 60% US, and 40% international real estate holdings. It has a 3.5% dividend. Is it the best-in-class? Most likely not. Has it been roughly following the REIT markets? Yes. So, taking account its low fees, this seems to be a stock worthy of Mr Beerver’s portfolio at the price of 8.97$.

Here’s a look at Mr Beerver’s current asset allocation table:



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About Beer Vestor

I like beer. I like free beer better. With this blog, I want to show you the process I use to get free beer. Follow along if you like but remember that this is for ENTERTAINMENT ONLY! Nothing here is is to be taken seriously and if you lose money in your quest for free beer, it's 100% your own fault for following along with someone who is NOT AN INVESTMENT REGISTERED ANYTHING and who BUYS first and talks about it LATER!

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