This Week In Your Wallet: What To Expect From Your Advisor
I had every intention of leading this week’s newsletter with interest rates. They’ve been in the headlines, because it looks like slow economic growth in the first half of the year will stave off a rate hike until the fall. I’m not going to elaborate, though, because I can’t stop thinking about Sheryl Sandberg.
The last time so many people were talking about the death of a prominent woman’s husband was 1998. Jay Monahan, Katie Couric’s husband, had lost his battle with colon cancer. And it seemed like the country was mourning along with her. I know Katie. I’d met Jay. I’ve never met Sheryl Sandberg or her husband Dave Goldberg. And yet, along with so many other people I know, I’m shaken. Part of it is the sheer tragedy of losing a beloved husband and father of two at age 47.
But part of it is the whole Lean In thing. As the days flow into weeks and the weeks flow into months, my hope is that where Sandberg’s work is concerned, she’s able to separate what she wants to do for herself and her family from what she thinks the Lean In community expects her to do. I don’t profess to know what that is. In fact, I’m sure there will be many different things. That’s what happens when you put yourself out there as a role model. But I’d just like to put it out there that my feeling is whatever she decides to do and whenever she decides to do it, she will have made the right decision. My condolences to the entire family.
And now for the other news of the week.
An Important Thing You May Not Be Doing
When was the last time you took a look at your credit report? I ask, because new research from Bankrate.com reveals over one-third of American adults (35 percent) have never — never! — reviewed any of their reports. Another 14 percent admit to (regularly) going more than a year in between checks — and only 48 percent have reviewed at least one of their reports in the last year. Why the negligence?
“People generally have a sense of their credit scores and reports, [that is] when they’re trying to get loans or credit cards,” says Jeanine Skowronski, Bankrate.com’s credit card analyst. Meaning: Unless you’re seeking mortgages, car loans or new lines of credit, you might be less inclined to keep a close eye on your information. And if you look closely at who hasn’t checked, adds Skowronski, you’ll see that it’s mostly senior citizens and millennials (44 percent and 41 percent, respectively). They’re not looking, because they’re not applying for credit as often. Trouble is (thanks to the spate of data breaches we’ve suffered through recently) not checking is dangerous. You should pull your credit report at least every four months, which you can do for free at annualcreditreport.com — the site grants you one free report from each of the three major credit bureaus (Equifax, Experian and TransUnion) each year. And now, courtesy of myBankrate, you can check both your score and report, for free, every month.
The bottom line: Failing to know your credit information now can lead to more work down the road. Better to put it on your calendar and check it off the list.
Advisors Should Listen More, Talk Less
What should you expect out of your first meeting with a financial advisor? Some might hope to leave with a prescription in hand, but that’s actually the last thing you want. Instead, you should expect to do most of the talking. Of the hour you spend in the office, the advisor should spend 15 minutes asking you really thoughtful questions, and the other 45 listening to your answers. As Carl Richards told me when I interviewed him for my Fortune column this week, this is the single biggest indicator of whether you’re dealing with a real advisor or a phony.
What sort of questions should you be asked? Questions about your current financial set-up of course (many advisors will ask you to bring documents with you for this purpose). But also questions about your life: What are your goals for the short-term, the long-term and the very long term (i.e. retirement). If you’re married, are you both in a position where you could handle the finances if you had to on your own? Where do you think you are today in terms of the amount of risk you’re taking, and are you comfortable with that? Karen Filler, senior wealth management advisor at TIAA-CREF, says about half the people she meets with don’t know the answer to the last question. But that’s okay, it’s part of the process. An advisor should have the goal of getting you to a place where you’re able to sleep at night based on the amount of risk you’re taking. And while your advisor might think this place is too conservative or too aggressive, they should always present a plan that’s actionable based on your — not his or her — sentiments.
Gifts To Make Her Proud
Finally, with Mother’s Day around the corner, it seems fitting to ask what financial wisdom you learned from yours. According to a new survey from BeFrugal.com, the two major lessons passed down from Moms are to live within your means (i.e. spend less than you make) and to understand the difference between a want and a need. Other advice includes the importance of being self-sufficient (44%), budgeting for everything (40%) and saving more money than you spend (38%).
Considering the above, it’s no surprise that roughly 80 percent people surveyed say it’s OK to save money on a Mother’s Day gift, because, well, you learned from the best! So if you’re looking for last-minute gift ideas, check out DealScience’s list of high-fashion clothes and accessories for low prices. For instance, right now you can head to Nordstrom Rack and find Michael Kors apparel for up to 70 percent off. Or, if she’s still rocking the same pair of sunnies from the ’90s, then check out the Oscar de la Renta shades (retail price of $715) for $199 on Gilt.com. (It’s a membership-only site, but membership is free.) See more ideas here.
Have a great week and to all the moms out there (including mine), Happy Mother’s Day, 
Jean
