“Who thought that was a good idea?” I asked this question of many clients in my 40-some years representing lawyers. The inquiry was particularly pertinent when the root of the problem my client created for their law license was the lawyer trying to do it all, not seeking available expert advice when venturing outside the boundaries of her or his expertise. Relying on an advertising professional instead of ethics counsel to assure the law firm its promotional material complied with the Rules of Professional Conduct is one example of a missed opportunity to ask for help.
Another hard lesson I witnessed lawyers endure is the aftermath of cutting corners to save a few bucks. A loved one with no bookkeeping skills managing the trust account may be cost-effective but not prudent. A competent bookkeeper or accountant would, of course, want to be paid. In hindsight, such an expense looks nominal compared to having one’s law license suspended. Putting the wrong person in the wrong position is never a good idea. This maxim doubly applies when planning for retirement.
Why a Financial Advisor?
The rule that one must seek competent advice applies to managing a lawyer’s personal life.
Had counsel who elected to go it alone sought competent counsel from an ethics lawyer, the pain and suffering of responding to the lawyer discipline authorities could have been avoided.
It makes no sense to risk having an underfunded retirement by going it alone when there is a wealth of expertise available for the asking. Some lawyers have the education and experience to plan for and manage their money to prepare for a successful retirement. But for the rest of us wishing to enjoy a satisfying life after lawyering, bringing a financial advisor on board will increase the odds of success.
Yes, there is a fee associated with this professional advice. Paying a professional for competent financial advice is part of the investment in your retirement. This is not a place to cut corners by relying on complimentary financial advice dispensed by a loved one who was good at math in high school.
A recent study by Smart Asset concluded that working and collaborating with a financial advisor could add from 36% to 212% more value to one’s portfolio. Not getting an expert involved when another skill set is needed can lead to a bad result. Some bad results are irreversible. Most people only retire once. A financial advisor can increase the odds that your retirement will be a good one.
When to Begin Planning?
Paying attention to the details of your financial plan cannot begin too soon. This slice of life should not be simmering on the back burner. Even master procrastinators must make an exception and turn their attention to their personal or family balance sheet from time to time. The simple answer to the question when one should begin retirement planning is Yesterday!
Find Help the Old-Fashioned Way
Lawyers make referrals all the time. Our savvy clients may be looking for the right accountant. A not-so-lucky client may need the name of a reputable sentencing consultant. Making recommendations is what lawyers do.
Likewise, we regularly seek assistance. Maybe you need to partner with an attorney who does work in a field other than your own to achieve a client’s goal. Perhaps you are looking for an appraiser or expert witness. Often, we turn to a trusted colleague, asking them to share the names of professionals they have worked with and may be able to help one of our clients.
The best fit for your financial advisor may be a product of the same process. Ask a few trusted friends if they would recommend the financial professional they employ. Get some details, not just a name and number. A gentle cross-examination seeking details about style, fees, responsiveness, and the advisor’s performance your friend has experienced may help you determine if this person will be a fit.
Of course, the internet will provide an endless list of financial service providers. That’s an option. A Google search will give you the names and numbers of plenty of folks anxious to manage your money. A better call may be to rely on first-hand information when seeking a professional with whom you plan to share details of your finances.
Meeting Your Potential Advisor
As with any other important meeting, you need to prepare before vetting prospects for advising you on planning the future. Here are a few questions a financial advisor advised me to advise readers to use when seeking a partner to help plan for retirement.
- Are they a Certified Financial Planner?
- How do they manage their clients’ funds?
- Do your values align?
- How do they charge for their services?
- How do they partner with attorneys and accountants?
- What resources are at their disposal?
- What do they do to improve their craft?.
