Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Annuities

Self-interest: The naked truth

X
Your article was successfully shared with the contacts you provided.

As I write this column, a major Wall Street bank has been in the news for allegedly defrauding its clients. This might explain a dream I had recently.

I lumber downstairs. “Good morning,” the wife chirps. “What would you like for breakfast?” “How about some scrambled eggs and bacon?” “OK, honey,” she says. But a few minutes later, she slides a bowl of cornflakes in front of me. “But what about . . . ?” “Shhh, I know,” she says, “but I’m late for my spa treatment.”

Disappointed, I eat, get dressed and head out to do errands.
“Hey, Steve,” says Marko, the barber. “What’s your pleasure?” (I’m dreaming, remember?) “Let’s go really short. I like to stay cool in the summer.” “No problem,” he says, clipper humming around my ears. A few minutes later he stops. “All set!” “Wait,” I say. “You hardly took any off!” “I know,” he answers. “See you in a couple days?”

Next I drive to my car dealer. After about 15 minutes, the service manager calls out. “We found a few problems while doing the tune-up.” “Tune-up?” I ask. “I just wanted an oil change.” “I know, but the computer says you need a tune up.” “But I . . .” “Don’t worry about it,” he says. “You’ve got a store credit card, right?”

Now I’m at my favorite caf? for lunch. I order my usual ham and swiss. The waitress returns with an elaborate seafood platter. “We’re fresh out of sandwich bread, so I brought you this instead.” “OK,” I answer glumly, “but I’m really not that hungry.” After I finish, the waitress brings over my check. It was three times my usual bill, with a 50 percent gratuity penciled in.

As I stare at the check in disbelief, the room begins to spin. Now I’m back in bed. “Strange dream,” I mutter. “I never got what I asked for, even though I made my wishes known!”

What about you? Has another advisor or business pursued self-interest at your expense? How did it make you feel? Have you ever done this to a client? How do you think the client felt? Willing to change? Here’s how:

  • Don’t let commissions color your professional judgment. If you do what’s right for clients, you’ll always earn more than enough money.
  • Don’t be a one-trick advisor. Client needs are more sophisticated today. Learn how to address them.
  • If you’re an annuity salesperson, don’t hold yourself out as a financial planner. Do the smart thing and become an RIA rep.
  • Don’t misrepresent your products by concealing negative facts. Full disclosure is always a winning strategy.
  • In short, don’t behave like an investment bank. In the harsh light of day, naked self-interest is an ugly sight, indeed.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.