My Guy or Gal

Drew Tignanelli, CPA, CFP®

By far the biggest financial mistake anyone can make in today’s world of personal finance is the My Guy syndrome. People are paying stockbrokers as much as 1% or more to do nothing more than make investments. Over the last 20 years, the industry has changed and for the same fee, independent fee-only wealth and investment advisors are providing the same investment services along with comprehensive financial planning, sophisticated tax advice, risk management insights, estate planning guidance, collaborative retirement analyses, Medicare and Social Security counseling, and anything else dealing with your personal finances. Paying 1% to have some just invest is the equivalent of going to McDonald’s and paying Ruth’s Chris prices for the food. The answer as to why some would do that is the My Guy syndrome.

The brokerage industry has long been built on building relationships with clients, who then generate revenue streams for the firm and the broker for years on end. 

My Guy has done very well for me over the years. 

My Guy has been my advisor for 20, maybe 30 years, and I have been satisfied. 

They are a big, well-recognized firm on Wall Street, and they have proven that they do a good job.  

The reality is that if you were invested in the stock market and stayed invested, you made money. Many firms will invest your money and deliver similar, if not better, results for .1 % or .2% per year. For a fee of 0.5-1% per year, you should get full, comprehensive, sophisticated advice like that of a general practitioner of Personal Finance. The Guy who made your investments do well over the last 10-50 years is the United States Economy that continues to propel higher. My Guy is totally dependent on the stock market going higher, and that is why when the market goes down, they say just hold on, and that is correct; do not sell. This means that your guy is not the one making the difference, but that the market has been going higher for 200 years, with occasional corrections.

What you should be paying for is comprehensive advice on minimizing taxes, proactive estate planning, risk management analysis, retirement planning, employee benefits, Social Security, and Medicare assistance, or anything else that impacts you financially. When you make a mistake due to a lack of knowledge, it becomes an invisible loss. You go your merry way, not knowing that a lack of knowledge just cost you $1000 or tens of thousands of dollars. 

Personal finance is now almost as complicated as human health, and therefore, a new era of wealth advisors is emerging like general practitioners of personal finance. Investments are the easy part, and research has proven that a solid asset allocation works for most people. Do you have a guy or an advisor who is like a doctor of personal finance? 

The Financial Consulate trademarked the name Financial Physical® in 1990 and has been training advisors to be like a doctor of personal finance. In retirement, mistakes are magnified because you are likely at your pinnacle financial top. Can you call your guy for help on taxes, estates, Social Security, Medicare, employee benefits, auto/home or life insurance, eldercare, education planning, or anything else in personal finances? If not, then realize times are changing and invisible losses may be mounting.