What do you put your trust more; process and technicalities or individuals? Survey says – individuals. Its an interesting paradox isn’t it? People are FAR less reliable than math, why? Simply because people are fallible. We can make mistakes, change our minds or become deceived. Have you ever tried to deceive a mathematical equation? You simply won’t get the correct answer. So why is it that we overwhelmingly put our trust in people? My thoughts are that we are built for relationship. The need to be connected is so deep down in our core that no matter the risks we will seek out and maintain these trust relationships, whether they benefit or hurt us. Woah… lots of bold statements here, I know.
So what’s the point of bringing this up in a financial column? Because like yourself, your neighbor and your friends I put my trust in a PERSON to handle my finances objectively. Not only is the person a nice, genuine individual that I believe I can trust, they have shown me a strategy and plan that encompasses the technicalities that shouldn’t be ignored. The point is trust in your advisor is fundamentally important and healthy trust makes room for transparency and honesty. Ask the important questions like “Does my plan make room for bumps in the road?”, “Are you looking at the whole picture?” or “how are you managing my money for tax purposes?” Remember not only do you trust them, even golf with them maybe?! You pay them. It’s 100% ok to question the process, it’s the best way to make sure you’re on the right track.