This is a story from Paul Armson. Whilst Paul is marketing his services, the point of the story illustrates how more people are starting to question the services of advisers or private bankers or stock brokers or wealth managers. Historically, commissions were hidden. Today they are transparent, but people still fail to ask good questions about value for money. The big wealth managers are very good salespeople.
Gordon, below, needed to be rescued from someone he trusted but wasn’t providing value. It means even if you like and trust your adviser, that is not enough.
“I recently arrived at a new marina in Greece.
As I was reversing into my berth, I saw the guy on the yacht next door rush from his boat to offer some assistance to Lynn, who was about to throw the mooring lines to the marina staff.
He helped us tie up. Always useful when that happens.
Anyway, as I’m washing the salt off Spellbound, we started chatting. I thanked him for having helped us to tie up.
He said ‘You have a lovely boat. It’s not often we get an Oyster parked next to us!’
We chatted about the weather forecast, etc, and where we had each been sailing recently etc.
As often happens, we got an invite to join him and his wife on their boat later, just as the sun would be going down.
Turns out Gordon and Sue had bought their 54 footer a year or so ago and were planning to set sail on their adventure of a lifetime, right around the world. Well, at least that was the plan. And why not! Gordon had sold his business a few years before and now they would soon be off!
I don’t know why, but I can’t turn my fact finding / discovery meeting head off… 🙄
So I asked my usual questions….
Gordon told me all about his business, how he started it, what he was doing before, how he gave up a secure job – with all its perks – to go out on his own….He told me how all his friends thought he was crazy. How he got ripped off by a partner. He told me about the trials.. about the tribulations… etc, etc.
And now, 30 years later, he’s now finally sold his baby, his business – he’s taken the money in exchange for all the blood sweat and years!
It was great to listen to Gordon’s story.
As is customary, it was our turn to invite them aboard the good ship ‘Spellbound’ the next evening. I could tell that Gordon couldn’t wait to come on board!
Turns out Gordon had always wanted a British built Oyster just like mine, but instead he went for a French built mass production yacht because… get this… it was “a fraction of the price of an Oyster!”
But that didn’t stop Gordon and Sue drooling over ‘Spellbound’ – Sue was down below admiring the extra space, the washing machine, the galley and the beautiful classic teak finish. Gordon, being a bloke, was more impressed by the hydraulics, the air con, the quietness of the generator, the water maker, the sound system and the Oyster build quality – not to mention her cruising speed.
Sounded to me like they both still wanted an Oyster! 🤩
As the evening progressed, Gordon enquired as to what I did for a living.
So I told him how I used to be a financial advisor, but semi retired early at 45 and how I now help other financial advisors demonstrate and deliver more value.
Turns out he had a Financial Advisor. When he sold his business he invested “a few million” through this Advisor.
However, Gordon said to me, “you know Paul, I’ve known my Advisor for many years, he’s a good chap and I trust him, but I am starting to wonder what he does for the huge sum of money I’m paying him every year in fees. All he seems to do is a bit of rebalancing now and then. I’m sure I could do that myself!”
Interesting.
On further digging (forgive me, I just can’t help it 🤭) it turned out he’d invested over 15 million with this advisor after the sale of his business – and that was on top of his existing portfolio.
I asked Gordon if his Advisor ever discusses with him the ‘important things’ like what’s the money for in the first place?
Does he ever ask what Gordon wants to do or achieve in the time he has left?
Or what sort of things do they want to do while they are still fit and able to do so?
Turns out his Advisor only ever discusses the money – and how good/bad/indifferently it has performed.
Get this….
He didn’t even know that Gordon’s passion was sailing!”
If you employ an adviser are you paying them to manage your money or help you make good financial decisions….it should always be the latter. Remember, to find out, you need to ask better questions of your advisers.