Here's another post in our series on the learnings from the book The Millionaire Next Door. Page 106 tells the story of how one millionaire handles financial advisors who call him (FYI, this guy has a net worth of over $5 million but he's never earned more (from employment) than $75,000 per year):
I tell him, "So you're really good. Well, I'll tell you what. Send me a copy of your personal income tax returns from the last few years and a list of what you have had in your own portfolio the last three years. If you made more money than I did from investments, I'll invest with you."
When they say, "We can't show that to you," I tell them, "You are likely to be full of baloney."
This is the same rationale I use for deciding whether or not to use a financial advisor.
I had a financial advisor that wanted to talk to me about my finances. He apparently did not give me time to ask about his relevant income.
He burst the bubble when he told me that his second job! His first and primary job had nothing to do with personal finance.
Posted by: moneymonk | October 30, 2006 at 05:05 PM